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    California General Liability Insurance

    California General Liability Insurance

    More than 99% of companies in California are small businesses, and they employ roughly half of the state's workforce. Small business owners rely on business insurance in order to manage profitable businesses and protect their employees.

    It is essential to understand that not all insurance providers are the same when searching for coverage for your business. 

    Discover how to acquire business insurance in California and how it may help you run a successful business.

    Regulations For General Liability Insurance In California

    Regulations For General Liability Insurance

    State regulations typically do not mandate that business owners carry general liability insurance. However, it is advisable to carry this liability insurance coverage. If a customer sues your company and you do not have coverage, your company's finances and personal assets may be at stake.

    Understanding your state's insurance regulations is essential. Consult with a local insurance agent for assistance in selecting the appropriate business liability insurance.

    What General Liability Insurance Covers In California

    The scope of coverage in a standard general liability policy includes the following:

    Bodily Injury LiabilityGeneral liability provides coverage for bodily injury to a third party caused by a business-related incident. For example, if a customer slips and falls in your store or an employee accidentally hurts a customer in the office. It is essential to highlight, however, that the coverage excludes injuries sustained by workers on the job.
    In such cases, the insurance can cover medical expenses up to the policy limit, income lost due to absence from work, and other claims connected to pain and suffering.
    Property Damage LiabilityIn addition to the possibility of physical injury, there is also a risk of property damage during commercial activities. General liability coverage includes, for example, road accidents, machinery incidents, and equipment breakdowns that cause property damage to a third party.
    Products and Completed OperationsBusiness owners can also obtain coverage for their products and completed activities. Whether the company makes, sells, or distributes items, general liability insurance can provide the necessary protection if a customer becomes ill or harmed due to these products.
    On the other hand, a construction or repair company can make mistakes that result in inconvenience rather than convenience. In this instance, the service provider may also be held liable. Consequently, the company requires general liability insurance to cover defense costs and other expenses.
    Personal and Advertising InjuryDamages caused by a business are not limited to a person or a piece of property. Both oral and written communication can be harmful. In instances such as malicious mischief, copyright infringement, libel, and slander, companies may incur reputation damage and financial losses. Small business owners will be aided by their commercial general liability insurance in the event of a lawsuit.
    Medical PaymentsMedical payments coverage refers to all medical and burial costs incurred by a non-employee harmed on the job or while working. However, the degree of medical coverage varies based on the policy limits.

    Cost Of General Liability Insurance In California

    Depending on several factors, the annual cost of your general liability insurance can range from a few hundred to a few thousand dollars. A major influence is the nature of your business. Higher-risk companies incur higher general liability insurance premiums than lower-risk industries.

    Cost Of General Liability Insurance

    For instance, construction companies are likely to receive and pay greater insurance quotes and premiums than consulting companies. Other variables that can impact the cost of liability insurance include:

    • Age
    • Number of employees
    • Location
    • Building status
    • Policy details (coverage limits and deductibles)
    • Insurance claims history

    Quick Corporate Insurance Statistics

    Corporate insurance solutions are vital to the financial well-being of businesses. Business coverage examples include product liability insurance, medical professional liability insurance, and directors and officers liability insurance. These coverages safeguard them against financial loss in the event of a medical error, product recall, or lawsuit. 

    The market capacity of the worldwide liability insurance sector has changed significantly over the past two decades, reaching a high point in 2017 of 3.3 billion U.S. dollars. Between July 2013 and July 2018, 22% of corporate damage claims in the United States involved fire or explosions, while 23% of claims in Canada involved fire or explosions.

    • Between July 2013 to July 2018, fire and explosion losses accounted for 24% of all insurance claims worldwide in terms of claim value. The cost of claims resulting from defective workmanship or maintenance
    • From July 2013 to July 2018, 90% of all corporate insurance claims were for losses under 50,000 euros. However, these claims represented only 4% of the total value of claims of this type
    • From July 2013 to July 2018, 33% of the total value of worldwide corporate insurance claims were for losses of 100 million euros or more. However, these claims represented less than 1% of the total number of claims of this type
    • In 2017, the worldwide liability insurance industry had a market capacity of 3.3 billion USD
    • Defense and containment expenses for U.S. insurers totaled approximately 21 billion dollars in 2019
    • In the second quarter of 2021, financial and professional liability insurance premiums increased by approximately 34% worldwide. Since the second quarter of 2018, costs have risen steadily, with 2020 exhibiting the most significant price increases

    Frequently Asked Questions 

    Below are some of the frequently asked questions regarding general liability insurance:

    Is business liability the same as general liability?

    The main difference between general liability and professional liability is the risks covered. General liability insurance protects against bodily injury and property damage. Meanwhile, errors and omissions in the services provided by your business are covered under professional liability.

    Is umbrella policy the same as general liability?

    General liability insurance is the first line of defense for the policyholder for a third-party claim. On the other hand, the purpose of umbrella liability insurance is to give a response if the general liability policy has been exhausted or does not cover the loss.

    What is the minimum amount of liability insurance coverage required in California?

    The minimum liability insurance requirements per California Insurance Code §11580.1b: $15,000 for one person injured or killed. $30,000 for injury/death to multiple individuals. $5,000 for property damage.

    Other Insurance Types

    • California Commercial Trucking Insurance
    • California Worker's Compensation
    • California Commercial Auto Insurance
    • California Business Owner's Policy
    • California Bonds Insurance

    The most straightforward approach to determining the cost of your commercial general liability insurance is to request quotations. You can customize your policy to your particular requirements.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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