Best Insurance Companies for Small Business
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Making sure your small business is protected should be a priority for any business owner. While no one hopes to ever make an insurance claim, not having business insurance can leave your company open to lawsuits and fines, and could potentially cut into your profit margin.
Not all small businesses have the same insurance needs, however. We’ll walk you through what you need to know about business insurance and help you pick the right provider based on your industry, company size, and other business priorities.
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What is small business insurance?
Small business insurance is essentially business insurance that protects small businesses from potential financial threats. The most basic type of business insurance is general liability insurance, which can protect your company from general injuries, some property damages, and even some advertising injuries.
Some states and industries require businesses to purchase business liability insurance. Even if yours doesn’t, this bodily injury policy can be helpful to ensure you’re protected in case of an accident. Aside from general liability policies, there are other types of business insurance. Employment practices liability insurance, unemployment and worker’s compensation insurance, may be required, for example, while others like commercial property insurance and business interruption insurance are optional.
Overview of the best small business insurance companies
Insurer | Best for |
The Hartford | Best overall |
HISCOX | Self employed and micro companies |
Nationwide | Flexible general liability coverage |
Progressive | Business auto insurance |
NEXT | Quick online quotes |
State Farm | New small businesses |
Liberty Mutual | Umbrella coverage |
Chubb | Liability protection |
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The best small business insurance companies
The Hartford
The Hartford has been offering insurance for more than 200 years and is a staple in the industry. What I like the most about their small business insurance coverage is how personalized their options are.
They offer industry-specific packages with more comprehensive coverage than a general policy would provide. Business owners can pick and choose the protections most relevant for them and bundle services for a discount.
The Hartford offers coverage across all states in the U.S.
The Hartford Insurance Options
The Hartford offers a variety of different business coverages, including:
- Business owners policy (BOP) - it combines business property, general liability, and business income insurance into one, to prevent small business owners from facing financial loss from the most common accidents
- Workers’ compensation
- General liability
- Professional liability
- Management Liability
- Employment practices liability
- Umbrella
- Commercial property
- Business income
- Commercial auto
- Cybersecurity
- Data breach
- Commercial flood
- Marine insurance
- Inland marine
- Multinational
- Home-based business
You can request a quote online and purchase policies directly from your computer or smartphone. Claims can be reported online or via phone at 866-467-8730.
Hiscox
Hiscox is another top name in the business insurance industry, with competitive policies and pricing across the board. While they’re a solid option for anyone searching for business insurance, I would particularly recommend them to anyone who is self-employed and looking for coverage or runs a business with 5 employees or less.
That’s because Hiscox offers flexible coverage plans with over 180 professions and several industries in mind. You’ll be hard-pressed to find a more personalized policy with the protection you need and none of the services you’re not interested in.
They currently offer coverage in all states except Alaska.
Hiscox small business insurance options
You can choose from a variety of options through Hiscox, with each plan specifically personalized for your business size and line of work. Offerings include:
- Business owners policy
- Workers’ compensation
- General liability
- Short-Term liability
- Employment practices liability
- Professional liability
- Errors & omissions
- Autos
- Umbrella
- Business property
- Business income
- Cybersecurity
- Medical malpractice
- Directors and officers
- Data breach
You can request a quote online and buy a policy online from your computer, tablet, or smartphone. Hiscox has an online claims center you can visit, but claims can also be reported by phone or mail.
Nationwide
Everyone knows the name Nationwide. This popular car insurance company is also in the small business game — and if you already have policies through Nationwide, you may be able to save by bundling.
What stands out the most about Nationwide is its flexible small business general liability coverage. If you just need basic coverage but would like a personalized plan, there’s no need to bundle and add or remove services. Nationwide can help you build the right general liability coverage plan you need, so you won’t be missing features or paying for services you aren’t using.
Nationwide has nearly a century of experience in the industry. Coverage isn't available in Alaska, Hawaii, Louisiana, Massachusetts and New Jersey.
Nationwide small business insurance options
Like its competitors, Nationwide also offers a large suite of business insurance products for small businesses. They include:
- Business owners policy
- Business liability
- Commercial auto
- Commercial property
- Workers’ compensation
- Business income
- Crime
- Cyber liability
- Errors and omissions (E&O)
- Equipment breakdown
- Umbrella
- Inland marine
- Builder's risk
Nationwide offers online quotes or business insurance quotes by phone. If you have specific insurance needs, speaking with an insurance agent may be your best bet. You can also report claims online or by phone.
Progressive
If you’ve ever compared car insurance quotes, it’s likely that you’ve stumbled upon Progressive before. Progressive is another insurance powerhouse that particularly excels at providing small business coverage for companies looking for business or commercial auto insurance.
Progressive is the second-largest auto insurance provider in the U.S., so it’s no surprise that it has one of the best business insurance policies on the market. If your small business depends heavily on travel or if it’s a delivery or shipping business, it’s worth getting a quote from Progressive and unpacking all of the auto benefits you’ll receive.
Progressive offers coverage in all 50 states, as well as Washington, D.C.
Progressive small business insurance options
While we love Progressive for businesses with commercial auto needs, they also offer expansive business insurance options.
- Business owners policy
- General liability
- Professional liability
- Workers’ compensation
- Employment practices liability
- Commercial auto
- Cybersecurity
- Inland marine
- Liquor liability
- Rideshare
- Excess and surplus lines
You can get a quote online and even shop by industry or profession. You can also buy your policy online or over the phone. You can report a claim from the Progressive app or website by logging into your account — you can also file claims by phone or mail.
NEXT Insurance
NEXT Insurance promises on its website that if you apply online it will provide you with a small business insurance quote in less than five minutes. It also says that you can receive your certificate of insurance after signing up for a small business insurance policy online. You can get an instant quote at NEXT’s homepage.
What sets NEXT apart are its policies tailored for specific professions. NEXT says that it offers policies designed for people working in the food and beverage, retail, construction, cleaning, fitness and entertainment industries. It also offers policies designed for Amazon sellers and for engineers and architects.
If you want to save money on a NEXT policy, you can bundle one or more business insurance coverages to receive a discount of up to 10% on your premiums. AM Best gives NEXT Insurance a rating of A-, considered “excellent,” for financial strength.
NEXT small business insurance options
Like other providers, NEXT Insurance offers a full suite of business insurance products.
- General liability
- Workers’ compensation
- Professional liability
- Commercial auto
- Tools and equipment
- Commercial property
- Business owners policy
State Farm
State Farm is another giant in the insurance field, but that doesn’t mean it's out of touch with the needs of new startups and small businesses. In fact, if you’re struggling with all of the legal-ese involved in setting up an insurance policy, State Farm could be a good resource.
State Farm agents are all small business owners — many agents are private insurance providers and have gone through the unique challenge of setting up and protecting their companies’ financial assets. You can tap into their wealth of knowledge to put together the right policy for your company.
State Farm is available in all states and Washington, D.C.
State Farm small business insurance options
Here are the types of coverage available through State Farm:
- Business owners policy
- Commercial auto
- Builders risk
- Workers’ compensation
- Employment practices
- Commercial liability umbrella
- Artisan and Service Contractors
- Farm and Ranch
- Inland Marine
- Disability Insurance
- Errors and omissions
- Employment practices liability
- Not-for-profit organizations
- Condominium and homeowners associations
- Key employee
With State Farm, you can request a quote online, but you’ll need to chat with an agent over the phone to complete the process of receiving your quote, building your policy, and completing the purchase. You can file a claim online via their website, with the State Farm mobile app, or by phone.
Liberty Mutual
Liberty Mutual has been in business for over 100 years and is a popular option when it comes to business insurance. Since all business insurance policies have limits and exceptions, umbrella insurance — which can help you bridge the gap between expenses if you hit your insurance limit — can be extremely useful.
The umbrella policies available at Liberty Mutual are quite expansive and offer protections beyond typical umbrella policies. For instance, they offer a high excess liability umbrella policy that can be added on to just about any underlying policy to better safeguard your business in the event of an accident or natural disaster.
Liberty Mutual offers coverage across the entire nation
Liberty Mutual small business insurance options
You can choose from a wealth of insurance options from Liberty Mutual, including:
- Business owners policy
- Commercial auto and fleet
- General liability
- Commercial property
- Equipment breakdown
- Mergers & acquisitions
- Healthcare liability
- Professional liability insurance
- Workers’ compensation
- Management liability
- Umbrella and excess liability
- Environmental liability
- Excess and surplus
- Inland marine
- Ocean marine
- Programs
- Specialty
You’ll need to reach out to Liberty Mutual by phone to complete the quote or purchase process. While it’s disappointing that there’s no online quote functionality right now, since Liberty Mutual offers flexible coverage, speaking with an agent is probably the best way to get the right coverage and price for your small business. Once you have an account, you can manage everything, including claims online.
Chubb
You might be a small business now, but if you’re poised for growth, it’s smart to get a business insurance policy that can grow and evolve alongside you. Chubb is a top name in insurance, originally founded in Switzerland in the late 1880s, and has been offering custom business solutions in the US for decades.
Chubb can help you find the right fit for your business now, while taking into account your future estimations and growth potential. As a huge enterprise, Chubb has all the resources you would expect from a large insurance provider, but is still able to offer small businesses a one-on-one approach. You may also receive discounts when bundling insurance products.
Chubb small business insurance is available nationwide.
Chubb small business insurance options
Here are the insurance options you can explore through Chubb:
- Business owners policy
- Professional liability
- Cybersecurity
- Workers’ compensation
- Travel insurance
- General liability
- Equipment breakdown
- Premises pollution liability
- Contractors pollution liability
- Excess & surplus
You can get a quote from Chubb’s website, but will need to reach out to an agent to confirm your purchase and choose your specific type of coverage. Once you have an account, you’ll be able to manage claims online, though you also have the option of reaching out to an agent.
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- Compare rates in minutes
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Small business insurance options
Insurer | Available in all 50 states | Online quotes | Online policies | Discount for bundling policies |
The Hartford | Yes | Yes | Yes | Yes |
Hiscox | Not available in Alaska | Yes | Yes | Yes |
Nationwide | Unavailable in Alaska, Hawaii, Louisiana, Massachusetts and New Jersey | Yes | Yes | Yes |
Progressive | Yes | Yes | Yes | Usually; some discounts are not applicable in certain states |
NEXT | Yes | Yes | Yes | Yes |
State Farm | Yes | Yes | Yes | Yes |
Liberty Mutual | Yes | Yes | Yes | Yes |
Chubb | Yes | Yes | You may need to speak to an agent via phone to complete the process | Yes |
Pros & Cons
Pros
- Small business insurance will provide protection in case your business’ physical facilities are damaged or destroyed.
- Small business insurance will pay out if you are sued by a customer or someone who is injured on your property.
- You can choose from several types of small business insurance policies tailored specifically for your business.
Cons
- Small business insurance isn’t free. You will need to pay a premium for this protection.
- Finding the right small business insurance policy can take a significant amount of research.
- You’ll have to pay your deductible amount out of pocket before your small business insurance kicks in.
FAQs
What is small business insurance?
Small business insurance refers to different insurance plans designed to protect you as a business owner. General liability or BOP (business owners policy) are the two most common types of insurance available for small business owners. Other policies can be added on as needed.
What type of small business insurance do I need?
That depends. Some states and industries are required to hold certain types of business insurance in order to remain compliant with state and local laws. You should visit your Secretary of State’s website for more information. Many types of business insurance are not required, but can be helpful depending on the industry you’re in. Errors & omissions insurance, for instance, can help you if a client tries to sue you for malpractice or loss of profit.
How do I decide if I need extra insurance coverage?
You’ll want to weigh the risk of not paying for insurance against the cost of the policy. It’s always best to compare different provider’s quotes, as well as different coverage options. If you don’t have a shared office space, for instance, property coverage may not make sense.
The bottom line
Small business owners should always shop around for the best business insurance policies that fit their specific needs and business size. Many insurance providers offer customizable plans and more detailed coverages by industry. To start, review any rules or requirements for your state and industry and then assess any additional coverages your company might require.
Additional reporting by Dan Rafter.
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Writer
Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.
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