Jump ahead to learn:
- Is CA General Liability insurance required?
- How does commercial General Liability insurance work in California?
- Examples of General Liability insurance claims for a California small business
- How much does CA General Liability insurance cost?
- How ERGO NEXT General Liability insurance can help protect California business owners
Is California General Liability insurance required?
Commercial general liability insurance can be required in California if you want your small business or sole proprietorship to:
- Lease a commercial space, as many landlords require tenants to maintain general liability insurance in case someone gets hurt on the property.
- Get or maintain a business license in some professions.
- Do business with some clients, as many require a certificate of insurance (COI) as proof of coverage before signing a contract.
- Obtain legal permits for things like construction projects or festivals and other events.
How does commercial General Liability insurance work in California?
From San Francisco to Los Angeles, California small businesses choose general liability insurance to help cover some of the most common business risks, including:
- Injuries to non-employees, such as a customer who trips and falls on your property – then asks your business to pay their medical bills.
- Property damage to other people’s property caused by you or your employees during business operations.
- Personal or advertising injury, such as copyright infringement, libel, or slander.
- Legal costs and attorney fees to defend your business against some lawsuits.
Also called commercial general liability insurance (CGL), this type of business insurance coverage could help cover California sole proprietors as well as small businesses (including partnerships and LLCs).
Examples of General Liability insurance claims for a California small business
- A painter in Sacramento spills paint in a client’s house, ruining their bungalow’s one-of-a-kind hardwood floors. General liability insurance may cover the costs to help repair the damage.
- An employee of a San Francisco restaurant badmouths a competing restaurant on social media – and the competitor decides to sue the business. Your commercial liability coverage could help with your legal defense.
- A San Jose retail store display falls on a customer and injures them. General liability insurance could help the retailer cover costs for the customer’s medical expenses.
