A standard Commercial General Liability (CGL) policy covers five core areas:

1. Bodily Injury
Covers medical expenses, lost wages, and legal costs if a third party — a customer, vendor, or member of the public — is injured as a result of your business operations. Example: a client slips and falls at your office or job site.

2. Property Damage
Covers costs to repair or replace third-party property accidentally damaged by your business or employees. Example: an employee damages a client’s flooring during a renovation.

3. Personal & Advertising Injury
Covers claims of libel, slander, defamation, invasion of privacy, copyright infringement in advertising, or wrongful eviction. Example: a competitor sues you over a social media post.

4. Products & Completed Operations
Covers claims that arise after your work is finished or your product has been sold. Example: a contractor completes a remodel, and the client later claims faulty work caused water damage. California requires contractors to maintain completed operations coverage for a minimum of three years after project completion.

5. Medical Payments
Pays immediate medical expenses (typically up to $5,000) to someone injured on your premises or by your operations — regardless of fault. This helps resolve minor claims quickly without litigation.

A General Liability policy does not cover everything. Common exclusions include:

• Employee injuries — covered under Workers’ Compensation
• Auto accidents — covered under Commercial Auto
• Professional errors or negligence — covered under Professional Liability (E&O)
• Your own property damage — covered under Commercial Property
• Intentional acts — never covered
• Pollution or environmental damage — requires a separate Pollution Liability policy
• Cyberattacks or data breaches — covered under Cyber Liability insurance

Understanding these exclusions is critical. Many businesses discover coverage gaps only after a claim is denied. Wellington Partners reviews your entire risk profile to make sure you have the right combination of policies — not just the minimum.

While California does not have a single statewide General Liability requirement for all businesses, specific industries face mandatory or effectively required minimums:

Licensed Contractors (CSLB)
$1 million per occurrence / $2 million aggregate minimum to bid on most commercial and public works projects. Most project owners now require the $2 million aggregate as a baseline.

Security Guards
$1 million per occurrence required for licensure under the Bureau of Security and Investigative Services (BSIS).

Handypersons
$1 million per occurrence required for licensing.

Daycares & Child Care Facilities
$1 million per occurrence required for state licensing.

HVAC Companies (LLCs)
$1 million to $5 million depending on business structure.

Cannabis Businesses
$2 million aggregate / $1 million per occurrence required for state licensing, plus a $5,000 surety bond.

Most Small Businesses
Even if not legally required, $1 million per occurrence / $2 million aggregate is the industry standard and required by most commercial landlords and general contractors. Average cost in California is approximately $42/month for small businesses.

General Liability policies come in two forms — and choosing the wrong one can leave you exposed:

Occurrence-Based Policy
Covers any incident that occurs during the policy period, regardless of when the claim is filed. If your policy was active when the incident happened, you’re covered — even years later. This is the preferred form for most businesses and especially for contractors, because construction defect claims in California can surface long after a project is complete.

Claims-Made Policy
Only covers claims that are both made and reported while the policy is active. If the policy lapses or is cancelled, claims arising from past incidents may not be covered unless you purchase a “tail” (extended reporting period). Claims-made policies are typically less expensive but carry more risk if coverage is interrupted.

What Wellington Partners recommends:
For California contractors and most small businesses, we recommend occurrence-based policies whenever available. If you currently have a claims-made policy, ask us about adding tail coverage or switching to occurrence form at renewal. Call us at (818) 492-4355 to review your current policy.

Two of the most common requests Wellington Partners handles for California businesses are Additional Insured endorsements and Certificates of Insurance.

Additional Insured
When a client, general contractor, property owner, or lender requires to be named on your policy, they are added as an Additional Insured. This extends your liability coverage to protect them for claims arising from your work. Most commercial contracts in California require this endorsement before work can begin.

Certificate of Insurance (COI)
A COI is a one-page document that proves your coverage is active. It lists your policy type, limits, effective dates, and the insurer. California landlords, GCs, municipalities, and event venues typically require a COI before allowing you on site or signing a contract.

Wellington Partners can issue COIs and Additional Insured endorsements quickly — often same day. Email us at certs@wpisgroup.com or call (818) 492-4355 with your request.

Wellington Partners Insurance Services has been helping California businesses get the right General Liability coverage at competitive rates. Whether you’re a sole proprietor just getting started or an established contractor managing a large workforce, we’ll help you:

• Meet CSLB, client, and landlord insurance requirements
• Choose the right limits and policy form (occurrence vs. claims-made)
• Add Additional Insureds and issue COIs quickly
• Bundle GL with Workers’ Comp, Commercial Auto, and other coverages for maximum savings
• Access both admitted and non-admitted carriers for hard-to-place risks

We also specialize in the industries that California’s post-wildfire market has made harder to insure — construction, roofing, landscaping, and more.

Call us at (818) 492-4355 or use our online quote form to get started. Our licensed California specialists will review your needs and find the best fit — at no cost to you.