New California Business: The Insurance You Should Have in Place in Your First 30 Days

You filed your LLC, opened a business bank account, ordered business cards, and now your first customer wants a Certificate of Insurance before they sign. Welcome to running a California business. The insurance side moves fast and the wrong order costs you money. Here is the starter pack that almost every new California small business needs in the first 30 days, in the order you should buy them.

1. General Liability (GL) — buy this first

General Liability is the policy that covers “third-party bodily injury and property damage.” In plain English: a customer trips at your job site, a product breaks something, your truck damages a fence. Most California contracts require $1M per occurrence / $2M aggregate. Some property managers and general contractors require $2M/$4M. GL is also the policy that lets your broker issue a Certificate of Insurance, which is the document your customer is asking for. Premiums for a small operation typically run $40-150/month. Buy this first because almost every other commercial conversation depends on it.

2. Workers Comp — the moment you have one employee

California requires Workers Comp the moment you have one (1) employee, including part-timers and including most so-called 1099 workers (the AB-5 ABC Test means most 1099s in California are actually employees for WC purposes). Don't wait until your first hire — quote it now so you can bind same-day when you make the offer. Most carriers can quote off NAICS code, projected payroll, and FEIN.

3. Business Owner's Policy (BOP) — if you own gear or rent space

A BOP bundles GL with Property + Business Income coverage. If your business has more than ~$10K of equipment, inventory, or tenant improvements, or if your landlord requires Property coverage, the BOP is usually cheaper than buying GL + Property separately. BOPs are designed for businesses under $5M annual revenue and typically run $80-300/month for small operations.

4. Commercial Auto — if a vehicle is used for work

Personal auto insurance excludes most business use. If you use a vehicle for client visits, deliveries, hauling materials, or transporting employees, you need commercial auto. This is true even if the truck is in your personal name. Commercial auto for a single light-duty vehicle in California typically runs $200-400/month; cargo vans and trucks for delivery operations (Amazon DSP, FedEx Ground) run higher and require DOT/MC numbers if interstate.

5. Bonds and licenses — if your trade requires them

California contractors with a CSLB license need a $25,000 contractor bond (premium typically $200-500/year depending on your credit). Auto dealers, mortgage brokers, notaries, and many other regulated trades need their own license bonds. Bonds are quick to issue, but skipping them blocks your license activation, so handle these in week 1 if applicable.

What to skip on day 1 (you can add later)

Cyber liability, Errors & Omissions (E&O), Directors & Officers (D&O), Employment Practices Liability (EPLI), and Commercial Umbrella are real coverages but most new businesses can wait 60-90 days to add them once revenue is flowing and you have employees. Don't let an aggressive carrier rep sell you the entire suite on day 1.

Get a starter-pack quote in one call

CoverToday Insurance Agency builds new-business starter packs every week for California LLCs and DBAs. Bilingual service English and Russian. Send your formation documents (LLC articles or DBA filing), description of operations, FEIN, and any pending customer COI request to info@covertoday.com or 310-299-5555. We typically deliver a side-by-side quote on GL, WC, BOP, and commercial auto within 1 business day.