A small business is defined as an enterprise with fewer than 500 employees. According to the United States Small Business Administration, there are more than 31 million small businesses in the United States, accounting for 99.7% of all businesses in the country. Running a small business is not easy, and one of the many challenges owners face is finding affordable and comprehensive insurance coverage.
This article discusses what type of insurance a small business needs and lists 10 of the best small business insurance companies so you can choose the one that’s right for you. We also answer some frequently asked questions about small business insurance.
By the end of this article, you should have a good understanding of the different types of small business insurance and which small business insurance company will provide you with the best coverage.
What type of insurance does a small business need?
There is no one-size-fits-all answer to this question, as the type of business insurance coverage a small business needs depends on the specific industry and the risks involved. However, there are some types of commercial insurance that you may need, such as:General liability insuranceProfessional liability insuranceCommercial property insurance (BOP)Commercial car insuranceCyber liability insuranceEmployee insurance Business interruption insurance
Best Insurance Companies for Small Businesses
Small business insurance can be obtained from various insurance companies. The following are ten of the best small business insurance providers, based on factors such as coverage options and business insurance benefits, such as customer service and lower prices. Cover types, limits and deductibles vary by company and should be carefully assessed before selecting a policy.
1. State Farm
State Farm is one of the largest and best-known insurance companies in the United States. They offer a wide range of insurance products for business owners, including employment practices liability insurance, general liability insurance, and occupational accident insurance. Plus, they let you add professional liability coverage to their BOP coverage.
Good for: Companies that prefer a human approach.
Advantages:Offers a business owner policy Available in all 50 states Offers a retirement savings plan Features industry-specific packages
cons:Discounts are not available in all states. There are limited online options for each policy. Complaints about rejected claims
This insurance company with the little gecko as its mascot offers a wide variety of commercial insurance products, including business insurance, work accident insurance, and business interruption insurance. And when it comes to hassle-free online insurance for small businesses, Geico is known for its affordable rates and easy-to-use online platform.
Good for: Businesses looking to save money.
Advantages:Discounts are available when you bundle your services Low customer complaints Above average customer satisfaction
cons:Uses a third-party insurer to support business claims Cannot file a claim directly through Geico
Chubb is a good option for commercial insurance because they offer types of coverage that you won’t always find in BOPs, such as business interruption insurance, additional expense coverage, and accounts receivable coverage. Plus, you can get cyber insurance along with a hard-to-place industry policy.
Good for: Businesses struggling to find insurance.
Advantages:Business insurance coverage for a wide range of different industriesSmall businesses can get a discount on a home businessIn-house claimsStartup friendly
cons:Can’t get an estimate without providing detailed information
4. The Hartford
The Hartford provides business insurance, including business income insurance, to companies in more than 60 different industries. You can also purchase liability insurance worth up to $2 million. Everything is available from data breach insurance to work accident insurance, including liability insurance for alcoholic beverages.
Good for: Small businesses that need coverage of $2 million or less.
Advantages:Policy can be customizedChoose from a wide variety of small business insurance optionsBOP features business interruption insurance
cons:Need to talk to an agent to finalize the policy If you need more than $2 million in insurance, look elsewhere
Nationwide is one of the largest insurers in the country. They give you the option to call an agent or put together your own quote online in about 30 minutes. Nationwide encompasses a wide variety of businesses, including wholesale, service, retail, office, food, and auto. You can get a policy that covers cyber liability, barge insurance and construction risk insurance.
Good for: Businesses that need multiple types of insurance.
Advantages:Find out what policies you need with their online coverage assistant Receives fewer complaints than expected for an insurer of their size Provides a good resource for employee benefits
cons:Speaking to an agent is required to get a policy
Progressive is a great choice if you only need insurance for your company’s cars. However, once you spread out across other business policies, be aware that Progressive offers these plans through a third-party insurer. If commercial auto insurance is what you’re looking for, Progressive covers cars, SUVs, dump trucks, box trucks, tow trucks, pickup trucks, tractor-trailers, limousines, buses, RVs and RVs.
Good for: Businesses that need commercial auto insurance.
Advantages:Commercial car insurance comes with roadside assistanceHas the largest share of commercial car insurance in 2021Provides specialist insurance for truck drivers
cons:Provides other business insurance through third-party providers Make all necessary non-automated claims through a third party instead of Progressive
Hiscox started his business in 1901, so you know they will be there for the long haul. They also offer commercial coverage, including professional liability coverage, in 14 countries and 49 states. They provide custom solutions for more than 180 different industries, including acupuncturists, janitors, therapists, consultants, fitness instructors, and salons. An interesting thing to note is that Hiscox writes all the business policies offered by Geico.
Good for: Companies in a niche industry.
Advantages:Hiscox is a major international insurer. You can get a business policy in 49 states (excluding Alaska) Offers policies for micro-businesses
cons:Offers only nine offices in the US
Travelers has been selling insurance since 1864. They currently offer insurance policies to more than 40 different business types, such as public entities, retail, construction, manufacturing and transportation. The price of each policy varies by industry and you can get employee insurance, security deposits, cyber liability and commercial auto insurance.
Good for: Companies that operate internationally.
Advantages:Has written the second highest number of commercial real estate coverage A++ from AM BestOffers insurance for over 40 different industries
cons:Features and prices depend on the specific industry you work in
9. Liberty Mutual Insurance
Liberty Mutual can help a wide range of industries, making them a good choice for most businesses. They break these down into 12 specific categories, including wholesale, real estate, healthcare, financial institutions, public entities, and construction. Their various business policies include workers’ compensation, umbrella coverage, barge, faulty equipment, and auto coverage.
Good for: Businesses that need the policies of business owners.
Advantages:24-hour claims assistanceUse the app or go online to file a claimBest business policy insurer
cons:Independent Agents Support Liberty Mutual Policy
Do you have an online business? If so, you’ll definitely want to check out CNA before choosing an insurance company. CNA stands out from the crowd because of its three different cyber insurance options. They include more than 180 business types divided into the following sectors: technology, real estate, professional services, manufacturing, life sciences, law firms, healthcare, financial institutions and construction.
Good for: Businesses that operate online.
Advantages:CNA specializes in providing business policies CNA has the eighth largest insurance platform in the US They provide coverage to small, medium and large small businesses
cons:CNA’s quote generator doesn’t always work
How to choose the best company for your business insurance policies
Choosing the best business insurance policies is not easy especially if you are one of the small business owners working in an unusual field. Fortunately, there are some great tips you can use to narrow down your choices.
Understand the risks of your specific industry
You should carefully consider your industry and which types of risk you will most likely face. This will help you decide what types of insurance to buy.
Please read your offered policy very carefully
Each policy has its own specific deductibles, limits, exclusions and premiums. Therefore, it is vital that you allow sufficient time to read the policy completely before making a decision.
Consider what type of insurance policies are required by law
Each state and specific industry affects the types of policies you are legally required to have. Make sure you know what you need to make sure you buy it.
Get to know the different types of insurance
There are many different types of coverage. These policies include – but are not limited to – general liability insurance, BOP and commercial property insurance. Know the basics of each policy type before looking at the policy.
Choose the level of coverage above the cost
While it’s understandable to try to cut corners, the last place to do it is with your insurance coverage. Instead of going with a little-known company to save money, make sure you stick with a bigger, better-known insurer.
How much does small business insurance cost?
Wondering what business insurance costs? The median cost for general liability coverage is $500 per year. In addition, a BOP costs about $636 per year. Your business income and exact needs can cause these prices to go up or down. In any case, make sure that you can always pay a premium to remain covered.
What is the best commercial auto insurance company for a small business?
Progressive offers small business auto insurance for an impressive list of vehicles, including cars, SUVs, dump trucks, box trucks, tow trucks, pickup trucks, tractor-trailers, limousines, buses, RVs and RVs.
What is the best commercial real estate insurance company for a small business?
Chubb has the best general insurance for small business commercial real estate. They offer BOP options that can’t be found anywhere else, and they are also friendly to many industries that would otherwise be unable to find coverage.
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