The Great Exodus:

How Big Insurance Companies Pulling Out of California Impact Small Businesses

In last month’s article, we shared the importance of having proper insurance coverage, specifically fire insurance coverage, as we approach California’s aggressive wildfire season. California, the land of sunshine and dreams, is currently facing a significant challenge as major insurance companies withdraw from offering new policies. This exodus has left small businesses in a state of uncertainty, searching for alternatives to protect their assets and operations.

Today, we delve into the reasons behind the departure of big insurance companies and highlight why small businesses in California should turn to Mainline Insurance for expert guidance and comprehensive coverage solutions.

A Hot Topic

Fast forward just one month and already some major insurance companies, including State Farm and Farmers Insurance, have cited the increased risk of wildfires as the reason for their decision to stop writing new home insurance policies. The decision has affected millions of Californians, including small business owners who rely on these policies for protection.

State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market, and “rapidly growing catastrophe exposure.


Allstate, another insurance powerhouse, announced in November it would pause new homeowners, condo, and commercial insurance policies in California to protect current customers. “The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums,” Allstate said in a statement.

The most significant effect of this decision is that it leaves homeowners with fewer options when looking for new policies. Some insurance companies that are still offering policies have increased their rates, making it harder for small business owners to afford the insurance coverage they need. In addition, some homeowners are being forced to increase their deductibles or even change their coverage to a non-standard policy, which may have fewer protections.

In the face of this daunting challenge, small businesses in California must explore alternative solutions to protect their interests and ensure their survival.  

Many business owners are asking themselves, what next?  

  1. Seek Expert Advice: 

Small business owners should consult with insurance brokers or specialists who can help navigate the changing landscape and identify the most suitable coverage options available. Mainline Insurance boasts a team of seasoned insurance professionals with extensive experience in the California market. Their in-depth knowledge of the insurance landscape allows them to navigate the changing environment effectively. By calling Mainline Insurance, small businesses gain access to experts who can assess their unique needs, provide personalized guidance, and help them secure the most suitable insurance policies.

  1. Tailored Coverage Solutions:

Understanding that each small business has distinct requirements, Mainline Insurance excels in providing tailored coverage solutions. They take the time to assess the risks specific to each business, offering policies that address vulnerabilities while ensuring comprehensive protection. By partnering with Mainline Insurance, small businesses can receive customized coverage options that suit their operations and budget.

  1. Access to Diverse Insurance Markets:

With these big players, Allstate and Farmers backing out of CA, Mainline Insurance maintains strong relationships with a wide range of insurance carriers, enabling them to tap into diverse insurance markets. With the exodus of big insurance companies, access to multiple carriers becomes crucial for small businesses seeking coverage options. Mainline Insurance’s network allows them to find alternative providers and negotiate favorable terms on behalf of their clients.

  1. Advocacy and Support:

Remember, that smaller, local insurance agencies like Mainline Insurance are facing the same issues as your small business when it comes to being properly insured. Mainline Insurance goes beyond being an insurance provider – they serve as advocates and trusted partners for small businesses. They understand the challenges faced by entrepreneurs in the wake of the insurance exodus and are committed to helping them overcome these hurdles. Mainline Insurance actively supports small businesses by advocating for their insurance needs and ensuring they receive the attention and coverage they deserve.

  1. Risk Management Expertise:

In addition to insurance coverage, Mainline Insurance offers valuable risk management expertise. Their team can assess a business’s potential vulnerabilities, identify areas of improvement, and provide guidance on minimizing risks. By proactively addressing risk management, small businesses can enhance their resilience and reduce potential disruptions.

The uncertainty associated with wildfire risk may exacerbate difficulties for small business owners. The trickle-down effect may also significantly affect the state’s real estate industry. In light of these changes, it is essential for small business owners to be informed and aware of their options for insurance coverage and seek advice from experts to ensure they are adequately protected. 

Get the coverage and expertise you need

By calling Mainline Insurance, business owners can access a team of experienced professionals dedicated to supporting their insurance needs. With Mainline Insurance’s expertise, tailored coverage solutions, access to diverse markets, and commitment to advocacy, small businesses can navigate these challenging times with confidence and ensure the protection of their assets and operations. Don’t let the insurance exodus leave your business exposed – Call Mainline Insurance today for the guidance and coverage you need to thrive.

Let Mainline Insurance help give you peace of mind as you go about working hard. 

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