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 get and compare quotes online, buy a policy online in a few mins, to file claims, pay bills, and doesn’t eat into your non-existent spare time.
Finding the right small business insurance provider can be challenging. We’ve done the hard work for you. Here are the top 8 providers:
- Simply Business: Best for finding low-cost coverage
- CoverWallet: Best for comparing several quotes online from top carriers
- NEXT: Best digital carrier that offers affordable rates
- Chubb: Best reputable carrier with the best customer satisfaction rating
- The Hartford: Best carrier for its highest ethical standard
- Hiscox: Best carrier for flexible coverage
- Liberty Mutual: Best specialized coverage for niche businesses
- Smart Financial: Best brokerage firm if you prefer working with an experienced agent
1. Simply Business: Best for finding low-cost coverage
Overview
Simply Business isn’t a direct small business insurance provider. Instead, it’s a broker that connects small-business owners with business insurance through partner companies. Simply Business partners with 20+ reputable carriers. One differentiator of Simply Business is the carriers they partner with are not only reputable and have excellent financial strength, but also tend to provide low-cost coverage for small businesses.
Simply Business does the initial work, getting you quotes tailored to your business needs. That’s where its services stop. All aspects of your policy, including underwriting, claims, and customer service are handled by third-party insurers.
Insurance coverages
Simply Business offers the following coverage types through partner insurance providers:
- General liability
- Professional liability
- Tools and equipment insurance
- Commercials auto (limited availability)
- Property insurance (limited availability)
- And more.
Industries covered
According to the Simply Business website, it can find coverage for virtually any industry, including:
| Builders | Landscapers |
| Carpenters | Painters and decorators. |
| Handymen | And many more, virtually businesses in any industries |
| Janitors |
Financial rating
A.M. Best: N.A. (The company is not a direct insurance provider.)
Customer rating
Simply Business website: 4.7
Pros and cons
Pros
- Get quotes from several reputable insurance providers from a single website in minutes.
- Access a resource library explaining different small business insurance coverages.
- All business insurance policies are through third-party insurers.
Cons
- You aren’t able to file claims through Simply Business.
- Limited coverage types for small businesses in the U.S.
2. CoverWallet: Best for comparing several quotes online from top carriers
Overview
CoverWallet is a business insurance aggregator. Founded in 2015, CoverWallet prides itself on offering advice first, followed by insurance solutions. It has partnerships with insurance agencies.
When you fill out an application with CoverWallet, you’ll get quotes from its partnering agencies. The quotes allow you to determine which insurance company can offer you the best coverage and rates so that you can find the ideal provider for you. Everything is accessible online so that you can view statements, payments, coverage documents, and other things related to your policy on CoverWallet’s dashboard.
Insurance coverages
CoverWallet offers most types of business insurance small businesses need, including:
- Business interruption
- Business owner’s policy (BOP)
- Commercial auto
- Commercial property
- Commercial umbrella
- Directors and officers (D&O)
- General liability
- Liquor liability
- Medical malpractice
- Product liability
- Professional liability
- Workers’ compensation.
Industries covered
| Administrative services | Education | Nonprofits | Technology, media, and telecommunications |
| Agriculture, forestry, fishing, and hunting | Finance and insurance | Professional, scientific, and technical services | Transportation and warehousing |
| Building maintenance | Food and accommodation | Real estate | Wholesale trade |
| Construction | Healthcare | Rentals and leasing | |
| Consultants | Management of companies | Retail | |
| Contractors | Manufacturing | Sports, arts, and entertainment |
Financial rating
A.M. Best: N.A. (The company is not a direct insurance provider.)
Customer rating
EKomi: 4.7
Pros
- Get quotes from several insurance companies on one website in minutes.
- Intuitive, easy-to-use platform.
- Simple to access all insurance information in a single place.
Cons
- Customer service can be a little slow.
- Quotes, especially complex ones, can take time to generate.
3. NEXT: Best digital carrier that offers affordable rates
Overview
Next makes it possible to access a wide array of affordable small business insurance coverages online in approximately ten minutes. If you prefer, you can speak with — and get coverage from — an experienced U.S.-based advisor in your area.
Insurance coverages
Next offers a decent selection of commercial insurance coverage types, including:
- Business owner’s policy (BOP)
- Commercial auto
- Professional liability
- Tools and equipment
- Worker’s compensation
- And more.
Industries covered
| Amazon sellers | Construction | Fitness | Pet care |
| Architects and engineers | Consulting | Financial services | Real estate |
| Auto services | Contractors | Food and beverage | Retail |
| Beauty | Education | Insurance professionals | Therapy |
| Cleaning | Entertainment | Legal services |
Financial rating
A.M. Best: A– (excellent)
Customer rating
Next website: 4.7
Pros
- Get a certificate of insurance quickly and easily.
- Customize your coverage based on the unique needs of your business.
- Able to buy insurance online or through a representative.
Cons
- Fewer specialized coverages than other providers.
4. Chubb: Best reputable carrier with the best customer satisfaction rating
Overview
Chubb has been in business since 1882 and operates in more than 50 places across the globe. It was the largest commercial insurer by annual premium value in 2021. The insurer has an A++ financial strength rating from AM Best and offers a wide range of business insurance types. Chubb was ranked second for customer satisfaction in the J.D. Power 2022 U.S. Small Commercial Insurance Study. Chubb is an ideal insurer for larger small businesses. It covers companies bigger than many of the other providers on our list.
Insurance coverages
Chubb offers most standard insurance coverages, including its well-regarded business owner’s policy, along with specialized ones for:
- Equipment breakdowns and theft
- Cyber issues and data breaches
- Employment practices liability
- Earthquake coverage (in certain states).
Agents and brokers are available throughout the United States to help you if you have unique coverage needs.
Industries covered
| Aerospace | Cultural institutions | Financial institutions | Law firms | Real estate |
| Agriculture | Educational institutions | Food | Life Sciences | Technology |
| Broadcasters | Energy | Healthcare | Manufacturing | Transportation |
| Cleantech | Entertainment | Healthcare I.T. | Mergers and acquisitions | Wineries |
| Construction | Federal government contractors | Hospitality | Professionals services firms |
Financial rating
A.M. Best: A++ (superior)
Customer rating
J.D. Power: Highest customer ranking
Pros
- Insurance is available for small businesses in a wide variety of industries.
- Business owners can purchase insurance coverage online.
- Coverage is also available through an extensive network of agents and brokers.
- You can file claims online, even if you purchase coverage through an agent.
Cons
- Insurance costs are not disclosed on Chubb’s website.
- You’re unable to chat with a representative online.
- You will likely have to call your agent instead of a Chubb rep if you have a question.
5. The Hartford: Best carrier for its highest ethical standard
Overview
The Hartford has insured businesses and individuals for more than 200 years. The company offers a wide variety of small business insurance products.
The Hartford provides top-notch customer service. The company’s website is intuitive and easy to use. It also lists many phone numbers to contact the company. You can get a quote online, and it’s easy to file claims. If you prefer, The Hartford has an extensive network of affiliated agents you can purchase coverage through.
Insurance coverages
- Beyond its industry-leading business owner’s policy (BOP), The Hartford offers a wide variety of insurance coverage for small businesses, including:
- Business property
- Commercial vehicle insurance
- General liability
- Workers’ compensation (The Hartford is one of the largest workers’ comp providers in the U.S.)
- Industry-specific coverage, including medical malpractice and livestock insurance.
Industries covered
| Arborists and landscaping | Education | Manufacturing | Real estate |
| Associations and nonprofits | Energy | Personal care services | Restaurants and food |
| Business services | Finance | Pet services | Retail |
| Contractors and construction | Healthcare | Professional services | Security |
| Culture | Livestock | Publishers and printers | Trucking |
| Technology | Wholesale and distribution |
Financial rating
A.M. Best: A+ (excellent)
Customer rating
The Hartford website: 4.7
Pros
- The Hartford offer wide array of customizable business insurance products.
- Coverage is available in all 50 states and the District of Columbia.
- You can buy insurance online or through an agent affiliated with The Hartford.
Cons
- The Hartford’s insurance can be more expensive than coverage from other providers on this list.
- The Hartford doesn’t offer insurance for agricultural businesses.
6. Hiscox: Best carrier for flexible coverage
Overview
Hiscox is an insurer specializing in insurance for small businesses and their owners. Hiscox Insurance has been in business since 1901. It has more than a half million small business customers.
It offers several unique insurance solutions for freelancers, making it a company independent contractors should check out.
With Hiscox, you can get a quote and manage your policy online. However, there are limits to how much you can do digitally. You may have to speak to a representative to make changes to your policy. Hiscox also allows you to purchase coverage and manage your insurance through an agent or broker.
Hiscox can be a relatively affordable insurance option. However, your cost is dependent on your unique business needs and location. Hiscox allows you to pay for insurance monthly with a limited cost increase of annual premiums, which can help with small business cash flow.
Insurance coverages
Hiscox offers a wide variety of insurance types, including:
- General and short-term liability
- Workers’ compensation
- Medical malpractice
- Electronic data loss protection
- Umbrella policies
- Coverage for short-term projects
- And more.
Industries covered
Hiscox does not disclose the industries it covers.
Financial rating
A.M. Best: A (excellent)
Customer rating
Hiscox website: 4.7
Pros
- Wide range of policy types and coverages available.
- Online quotes available.
- Access to agents or brokers if you prefer purchasing coverage through one.
- Good insurance option for sole proprietors and independent contractors.
Cons
- Small business protection is not available in all states.
- You may not be able to make policy changes online.
- Hiscox not offer farm or ranch coverage.
7. Liberty Mutual: Best specialized coverage for niche businesses
Overview
Liberty Mutual is a large national insurance company launched over a century ago as a workers’ compensation insurer. The company now offers a wide selection of business insurance products, although it may not offer all coverages in all states. Also, be aware that Liberty Mutual doesn’t offer online claims service.
Liberty Mutual offers policies that can help fill coverage gaps. It also covers hazardous industries, including construction, railroad, and energy.
Insurance coverages
Liberty Mutual offers a wide range of small business insurance coverages, including:
- Business owner’s policy (BOP)
- Commercial property
- Equine and livestock
- General liability coverage
- Workers’ compensation
- Inland and ocean marine policies
- And more.
Industries covered
| Construction | Manufacturing | Real estate |
| Financial institutions | Private equity | Sharing economy |
| Energy | Professional services | Wholesale |
| Healthcare | Public entities |
Financial rating
A.M. Best: A (excellent)
Customer rating
Trustpilot: 1.4
Pros
- Many different business insurance policy options are available.
- Livery Mutual offers specialized coverages for niche industries.
- Insurance is sold in all 50 states and Washington, D.C.
Cons
- No short-term liability coverage is available.
- Liberty Mutual does not provide farm or ranch insurance policies
- You may not be able to file claims online.
8. Smart Financial: Best brokerage firm if you prefer working with an experienced agent
Overview
Smart Financial is an insurance brokerage firm. They believe that small businesses should buy coverage by working with an experienced agent who can help them find the right coverage at the most reasonable rate. That’s the reason why they built an intensive network of 100+ agents who are experienced in every niche and segment of all industries and who can help small businesses find the right coverage at the cheapest rates.
Insurance coverages
Because Smart Financial represents more than 20 business insurance companies, its coverage options are unparalleled. Insurance types include:
- Business owner’s policies
- Commercial auto
- Commercial property
- Commercial umbrella
- Cyber liability
- Employee benefits and liability coverage
- Employee dishonesty coverage
- General liability
- Product liability
- Professional liability
- Workers’ compensation
- And more.
If you have unique insurance coverage needs, Smart Financial could be a good solution.
Industries covered
| Construction and contractors | Personal trainers | Tree trimming |
| Consultants | Photography | Trucking |
| Micro blading | Restaurant | Vending |
| Online business | Retail | Warehouse |
Financial rating
A.M. Best: N.A. (The company is not a direct insurance provider.)
Customer rating
Benzinga: 4.0
Pros
- Free marketplace that connects small business owners with more than 100+ agents
- A network of experienced and knowledgeable agents
- Affordable, fully customizable coverage across many industries.
Cons
- Not able to buy insurance direct from Smart Financial
- Can’t make claims through Smart Financial. You must make them through the insurer that provides your coverage.
What is business insurance?
Business insurance is an insurance policy that protects your company from potential losses that may occur during the ordinary course of doing business. Usually, the policy comes with several other types; this includes coverage for property damage, legal liability, and employee-related risks.
These coverages, also known as commercial lines insurance, keeps the economy running smoothly. It does this by protecting businesses from potential losses that they cannot afford to cover independently. That way, the company can continue to operate even when it seems too risky to do so.
Why do small businesses need insurance coverage?
Small businesses need insurance coverage to protect them from the financial risks associated with running a business. Insurance can provide protection against liability claims, property damage, and lost income due to theft or other disasters. Additionally, it can help cover the cost of medical expenses for employees injured on the job or other types of losses. Insurance coverage helps small businesses reduce their potential losses and stay financially stable.
Small business owners face greater personal financial exposure in a loss because of their size and resources. Large and established businesses might have what it takes to fight these lawsuits. But small companies generally do not have the resources to fight or pay for these claims. Therefore, small business owners must carefully consider and evaluate their business insurance needs.
One out of every five of lawsuits against small businesses sees the defendant get defense and settlement payments. As a result, small businesses bill an average of $125,000 in claims while paying approximately $35,000 in deductibles. That’s an amount that most, if not all, small businesses can’t afford to pay out of their pockets.
If a business owner does not believe they can assess business risk and need coverage, they should consult with a reputable, experienced, licensed insurance broker. You can find a list of licensed agents in your state by contacting your state’s insurance department or the National Association of Insurance Commissioners.
What insurance coverage do small businesses need?
While each small business is different, insurance companies recommend that small businesses carry at least $500,000–$1,000,000 in commercial liability insurance to cover bodily injury, personal injury, advertising injury, and legal defense and judgment.
What business insurance coverage is required?
Business insurance coverage required will depend on the type of business and industry. Generally speaking, all small businesses are required to have commercial auto insurance and workers comp insurance.
Small businesses should also have a general liability insurance policy to protect against third-party bodily injury and property damage claims, as well as professional liability insurance which covers errors and omissions in professional services.
Depending on the type of business, data breach coverage and employment practices liability may also be necessary.
General liability insurance for small businesses
General liability insurance protects against common business risks such as customer injury, property damage, and advertising injury. It shields your small business from the high costs of lawsuits and assists you in obtaining leases and contracts.
As a small business owner, you should consider getting this coverage if:
- If you work in an office that you rent or own
- If you work in close contact with your clients
This policy is vital for small business owners to buy it before starting operations. Also, some clients might request this coverage before they do business with you.
The following are some examples of instances where general liability insurance can be helpful for your business:
- While on the job, you inadvertently damage a customer’s property.
- A customer slips and falls and is injured in your establishment.
- Your company is sued for slanderous remarks you made about a competitor during an interview.
General liability insurance will keep you protected in any above scenarios and keep your business financially stable.
BOP insurance for small businesses
A business owner’s policy (BOP) combines property and liability coverage into a single package. Depending on the company, BOP is usually sold at a lower premium than the total cost of the individual coverages. This makes it a popular choice for many business owners across the US.
This policy is ideal for small business owners who own or rent the building, where they operate.
Professional liability insurance for small businesses
Also called Errors and Omissions (E&O) insurance, professional liability insurance is crucial for any business insurance portfolio. This coverage is primarily for professionals like doctors and lawyers, where their mistakes in their jobs can cause lots of damage. The coverage helps protect professionals from such financial losses or damages when they happen. This coverage covers all expenses incurred due to a lawsuit, including unfavorable judgments like general liability insurance. The distinction between general liability and E&O insurance is that general liability protects you if someone is physically injured. In contrast, professional liability protects you if your client claims damages due to the services you provide.
Different professional liability insurance for different professionals have several nuances that are specific to the profession. Use our guide specific to the profession to find and get the best professional liability insurance coverage for you. Professional liability insurance is also called malpractice insurance or errors and omissions in some professions:
The coverage details are a bit different and nuanced in different industries and specialties. Use our guides specific to each industry and specialty to find the coverage that you need:
- Lawyers – Top 5 Providers of Legal Malpractice Insurance & How Much It Costs
- Accountants & CPAs – Professional Liability Insurance (E&O) for Accountants and CPAs
- Tax preparers – The Best E&O Insurance for Tax Preparers
- Doctors – The 5 Best Providers of Medical Malpractice Insurance
- Consultants – Professional Liability Insurance (E&O) for Consultants
- Real estate agents – Top 5 Providers of Real Estate E&O Insurance & Costs
- Insurance agents – E&O Insurance for Insurance Agents: Cost and Top 5 Providers
- Engineers – Top 5 Providers of Professional Liability Insurance for Architects and Engineers
- Marketing and advertising services
- Psychologists – Top 4 Providers of Malpractice Insurance for Psychologists and Counselors
- Nurses – The Best 4 Providers of Nursing Malpractice Insurance
- Nurse practitioners: The Best Malpractice Insurance for Nurse Practitioners
- Dentists – Top 5 Providers of Dental Malpractice Insurance
- Dental hygienists – The Best Malpractice Insurance for Dental Hygienists
- Physician’s assistants – The Best Malpractice Insurance for Physician’s Assistants
- Physical Therapists – The 6 Best Malpractice Insurance Providers for Physical Therapists
- Chiropractors – 4 Best Choices for Cheap Chiropractic Malpractice Insurance
- Pharmacists – The Best Malpractice Insurance for Pharmacists and Costs
- Social workers – The Best Malpractice Insurance for Social Workers
Workers comp insurance for small businesses
Workers’ compensation insurance or workers’ comp insurance is a type of coverage that assists in paying medical expenses for injured or ill employees on the job. As a business owner, the laws mandate that you purchase workers’ compensation insurance when hiring your first employee. There are, however, a few exceptions. For instance, if you work as an independent contractor or sole proprietor, you are not required by law to have a workers’ compensation policy.
Commercial auto insurance for small businesses
Commercial auto insurance is a coverage that protects vehicles used for business purposes. It works the same way personal auto insurance will work, only that it covers commercial vehicles that private insurance policies do not cover. That is, if your business owns, rents, or leases vehicles for business; you need this insurance. Even if you have personal auto insurance, it won’t cover your commercial vehicles.
State laws across the country mandate that you carry commercial auto insurance if your business has vehicles. For companies, this means that you must insure each vehicle with the following minimums:
- Property damage liability of $5,000 per incident;
- Bodily injury and death liability of $15,000 per person
- $30,000 bodily injury or death liability to multiple people
Other business insurance coverages that small businesses might need
- Commercial property, which covers losses in your workplace resulting from things like weather damage, fire, theft, or vandalism.
- Business income interruption, which will help replace a portion of your business income if your company is unable to operate because of covered reasons.
- Product liability, which covers you if a product you manufacture or sell is faulty and doesn’t perform as intended and you’re sued because of it. Learn more at the best product liability insurance companies.
- Cyber insurance, which helps pay expenses related to the theft or loss of critical customer, employee, or business information. Learn more at the best cyber insurance companies and the best data breach insurance companies.
- Directors and officers, or D&O insurance, which will help pay legal expenses and damages if a director or officer at your company is sued because of a business-related decision. Learn more at the best D&O insurance companies.
How much does business insurance cost?
The cost of business insurance is about $129 per month or $1,548 per annum on average. Usually, a range of factors affects this cost; they include:
- The industry type: contractors, for instance, will pay more compared with cleaners because their work comes with more risks. Professionals also pay more since their work exposes them to more financial troubles.
- The coverage requirements: the more the coverage, the higher the price
- The size of the business: the more the employees and projected income, the more you will pay for insurance.
- The business location: For instance, a company in California or New York will pay more for a premium than a business in Alabama or Mississippi
How to find business insurance coverage?
There are several options for you to choose from for business insurance. You can get your coverage from business insurance digital brokers or the insurance companies themselves.
Getting a quote from the digital broker is usually more straightforward as the company does most of the work and recommends the best option for you. Besides, these companies typically generate their suggestions in a few minutes, so that will save you a lot of time. But then, the company can only recommend policies offered by their partners.
If you want more recommendations, you can do things yourself by checking quotes from various companies. This might be time-consuming, but you won’t miss anything except you want to. Learn more about where to get and compare business insurance quotes online.
How to find the cheap business insurance?
As a business owner, your main aim should be to cut costs as much as possible. The following are some methods to find the cheapest small business insurance companies:
- You are paying your premium in full. Most insurance companies provide discounts if you pay a year’s worth of insurance premiums in advance. The deal comes as a reward since you won’t be missing any payment later on.
- You are bundling up multiple policies. When you combine various types of insurance, most major insurance companies will give you a discount. For instance, if you already have a policy for home, auto, or another type of insurance, you should consider getting your business insurance from the same company. That way, you might get a discount from the company regarding business insurance.
- You are maintaining continuous insurance coverage. If you’ve had your current business insurance policy for at least a year, you may be able to save money on your new policy.
BravoPolicy Methodology
We’ve reviewed more than 30 companies offering small business insurance coverage. We picked these 8 companies based on the following criteria:
- Products Offered
- Industries covered
- 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.
- 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, communications, price, and statements
- 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 and buy a policy online. We also give higher scores to companies that allow small businesses to compare several quotes easily and fast because we firmly believe that comparing several quotes is one of the best way to find the cheapest rate for the same coverage. We also considers how easy it is to file a claim, pay a bill, etc.
Last Thoughts
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.
