Small business owners have a million things to do and a limited amount of money. One thing you should never overlook is finding insurance for your small business. It’s important because you don’t want to lose everything you’ve worked for over some small mistake or an unhappy customer. You’ll also need an insurance company that makes it easy for you to file claims, pay bills, and doesn’t eat into your non-existent spare time.
There are many types of insurance a small business owner might want. Some of them include:
- General liability insurance
- Commercial property insurance
- Business income insurance
- Workers’ Compensation
- Commercial auto
- Commercial crime
- Inland Marine
- Builders’ risk
- Cyber insurance
- Professional liability
- Errors & Omissions (E&O) insurance (or malpractice insurance)
Not every business owner will need every type of insurance. Different companies offer different types of coverage, although they all offer general liability insurance. If you’re a small business owner, even if you don’t get any other type of insurance, a general liability policy is a must.
Here, we’ve evaluated the top small business insurance companies and explained how we came to rank them in this list.
The Best Small Business Insurance Companies
We totaled up the scores of each of the companies we reviewed and gave them a composite score. We then put them into a table, with the highest scoring company on top. For our complete review of these companies, click on the link.
|Index||Company||BravoPolicy Rating Score||Notes|
|3||Cincinnati Small Bus.||430|
|9||NSO (Nursing Service Organization)||370|
|10||Auto Owners Ins.||370|
|18||Vouch Insurance||330||Consumer complaint score not available yet|
|20||HPSO (Healthcare Providers Service Organization)||300||Consumer complaint score not available|
|21||Pie Insurance||250||No consumer complaint score not available yet|
|22||Am Trust (*)||240||Customer satisfaction score not available|
*Am Trust didn’t get a score for Customer Satisfaction, which hurt its overall score.
Chubb and Nationwide are our highest scoring small business insurers. Nationwide earned the top spot on J.D. Power’s Small Commercial Insurance study, with Chubb number three on their list. This means both companies offer a range of business insurance products, good customer service and make it easy to secure a quote.
BravoPolicy Rating Methodology
We’ve reviewed fourteen small business insurance companies. We assign them a score from 10 to 100 in the following categories, with the maximum score being 500.
- Products Offered
- Financial Strength Rating
- Customer Satisfaction Rating
- Consumer Complaints Rating
- Digital Experience Rating
Here’s a breakdown of what each category represents
- Products Offered: Insurance companies can offer small business owner’s a lot of different types of coverage. Companies that offered insurance for many industries or many different policy types scored higher in this category. Points are out of 100.
- Financial Strength: A.M. Best evaluates insurance companies based on their ability to pay claims, how much debt they have, total assets, and future outlook.
- Customer Satisfaction: J.D. Power’s Small Commercial Insurance Study is our source for this evaluation. J.D. Power considers things like:
- Overall Satisfaction
- Product Offerings
Points are out of 100.
- Consumer Complaints: The NAIC (National Association of Insurance Commissioners) calculates a complaint index score for every company, with 1.0 being the median average. If a company had an index score lower than 1.0, they scored higher here.
- Digital Experience: Small business owners are busy. Digital Experience evaluates how easy it is to get a quote online. It also considers how easy it is to file a claim, pay a bill, etc.
Top Five Small Business Insurance Companies
Chubb Small Business Insurance
Chubb earns our top score; due to the enormity of the industries and professions they cover. They also excel if you do any international business. You can buy a policy entirely online, or if you prefer, you can work with an agent. They also have some unique policy offerings, such as railroad insurance and product recall insurance. They may be a little on the pricey side.
Nationwide Small Business Insurance
Nationwide came out on top on J.D. Power’s small commercial insurance study 2019 (The study for 2020 comes out in August). They offer property and casualty insurance, plus surety bonds, which is great for commercial construction. You can report claims online, although there is no online chat feature.
Cincinnati Small Business Insurance
Cincinnati Insurance offers a fairly lengthy list of insurance products, which is impressive considering the size of the company. They offer the usual general liability policies, but they also offer coverage such as excess and surplus, crime, and cyber risk. They sell policies through agents, so you can’t get an online quote.
Hiscox Small Business Insurance
Hiscox is one of the largest small business insurers. It’s incredibly easy to get a quote online, and it recommends products for your specific industry. You can literally get a quote in less than 60 seconds. It also breaks down how much you will pay each month and offers easy ways to pay those bills online. The NAIC lists a disturbing number of complaints for their commercial property insurance, so take note if you’ll need this type of insurance.
Next Small Business Insurance
Next is a relative newcomer to the insurance industry, launched in 2015. They sought to make buying business insurance easy, and they seem to have accomplished this goal. They offer basic policies at affordable rates, and they make it easy to get an online quote. Within a few minutes, they will give you three levels of coverage and pricing. They don’t insure New York State for construction, so if you need that, or if you’re a contractor and you accept work in New York State, you’ll have to look elsewhere.
Small business owners have unique needs. One insurer that’s perfect for one entrepreneur may not meet the needs of someone else. One thing small business owners have in common is a limited amount of time and money, so an insurance company that provides an easy online quote is a plus. Shop around and find the best insurance policy for your business.