Winter presents unique risks for California small businesses, from slip-and-fall incidents during rainy weather to supply chain disruptions during storms. Proper business insurance planning 2026 ensures your company remains protected during the season’s challenges and positions you for success year-round.
Required Business Insurance in California
California law mandates certain types of coverage for small businesses operating within the state:
Workers’ Compensation Insurance
All businesses with one or more employees must carry workers’ compensation insurance. This requirement applies to both full-time and part-time workers, including licensed contractors even without other staff. Workers’ compensation covers medical expenses and lost wages for employees injured or made ill on the job and protects your business from related lawsuits.
Commercial Auto Insurance
If your business owns vehicles, commercial auto insurance is required under California law. California’s minimum requirements are $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $15,000 for property damage liability. Personal auto policies typically exclude business use, so proper commercial coverage is essential.
Winter-Specific Coverage Considerations
During winter months, California businesses face increased risks that may require additional attention from owners and managers:
- Premises liability for wet floors and slippery entryways
- Property damage from storms, flooding, and water intrusion
- Business interruption from power outages or road closures
- Vehicle accidents during inclement weather conditions
- Employee injuries from cold-weather tasks
Cost-Effective Coverage Options
A Business Owner’s Policy (BOP) bundles commercial property insurance and general liability into one cost-effective package. This comprehensive approach covers third-party injuries, property damage to others, business property loss, and business interruption. Circadian Insurance Brokers recommends reviewing your BOP annually to ensure coverage matches your current operations and growth plans.
Additional Recommended Coverages
- General liability insurance for customer injuries and third-party property damage
- Professional liability insurance for service-based and consulting businesses
- Cyber insurance to protect against data breaches and cyberattacks
- Commercial umbrella insurance for additional liability protection beyond base limits
Business Insurance Planning 2026 Tips
Winter is an excellent time to review your business coverage carefully. Consider whether you’ve added new equipment, hired additional employees, or expanded operations since your last policy review. The California Office of the Small Business Advocate provides resources to help businesses understand their insurance obligations.
The California Department of Insurance offers a comprehensive Small Business Guide to Commercial Insurance that can help business owners make informed coverage decisions for the year ahead.
This article provides general information and is not insurance advice.
