The 5 Most Important Insurance Coverages for Small Businesses in California

Running a business in California means juggling a lot — customers, employees, vendors, regulations, and the day‑to‑day hustle that keeps everything moving. Solid insurance coverage is one of the easiest ways to protect the work you’ve built, but knowing where to start can feel overwhelming. That’s why we’ve put together the five most important types of small business insurance California companies should consider.

1. General Liability Insurance

This is the foundation of most business insurance programs. General liability protects you if someone claims bodily injury, property damage, or advertising injury caused by your business.

Examples:

• Contractors: A homeowner trips over equipment on a job site.
• Retailers: A customer slips in your store.
• Restaurants: A delivery driver damages a customer’s property.

2. Workers’ Compensation Insurance

California requires workers’ comp for any business with employees. It covers medical costs and lost wages if an employee gets hurt on the job.

Examples:

• Contractors: A carpenter injures their hand using power tools.
• Retailers: A stock clerk strains their back lifting boxes.
• Restaurants: A cook suffers a burn in the kitchen.

3. Commercial Auto Insurance

If your business owns or uses vehicles, California requires proper commercial auto coverage. Personal auto policies usually don’t cover business use.

Examples:

• Contractors: A work truck is involved in an accident on the way to a job site.
• Retailers: A delivery van backs into another vehicle.
• Restaurants: A catering van is hit while transporting food to an event.

4. Commercial Property Insurance

This protects your building, equipment, and inventory from losses caused by fire, theft, vandalism, and more. Even if you lease your space, property coverage can protect your business assets.

Examples:

• Contractors: Tools or generators are stolen from a locked storage unit.
• Retailers: Inventory is damaged from a burst pipe.
• Restaurants: A kitchen fire damages appliances and furniture.

5. Commercial Umbrella (Excess Liability) Insurance

Umbrella coverage adds an extra layer of liability protection on top of your general liability, auto, and workers’ comp policies. It’s especially valuable for businesses with higher exposure.

Examples:

• Contractors: A major claim exceeds the limits of a general liability policy.
• Retailers: A severe customer injury results in a large settlement.
• Restaurants: A serious auto claim from a catering accident surpasses standard limits.

Protecting Your California Business Starts with the Right Coverage

No two small businesses are exactly alike, and the right mix of insurance depends on your industry, operations, and risk profile. At Express Center Insurance Services, we help contractors, retailers, restaurants, and other local businesses get the coverage they need — without the fluff or confusion.

Ready to find the right protection for your business? Contact us for a tailored small business insurance California quote today.