Small business insurance protects small businesses by providing coverage against risks and potential financial losses. It serves as a protective measure against unforeseen circumstances that could have adverse effects on a small business’s operations, assets, employees, or reputation. In today’s article, you’ll explore the best small business insurance.
Determining the appropriate insurance requirements for your small business depends on several factors, including industry, location, size, and specific risks involved. Carefully evaluate your business’s distinct needs and seek guidance from insurance professionals or brokers. This article will teach you everything about the best small business insurance.
Best Small Business Insurance: Overview
Small business insurance is a specialized insurance coverage created to shield small businesses from risks and potential financial losses.
It acts as a safety net for small business owners, protecting against unforeseen events that have the potential to disrupt or harm their operations.
Within small business insurance, various types of insurance policies can be customized to address the specific requirements of individual businesses.
A business owner’s policy is a comprehensive package combining commercial property and commercial liability insurance. It may also include business interruption insurance, which helps replace income during a covered loss.
In addition, professional liability insurance, commercial auto insurance, and workers’ compensation insurance are often necessary for many business owners. These policies can be obtained separately or added as customizations to enhance your business owner’s policy.
Best Small Business Insurance: Types Of Insurance
Here are the insurance that you might need for your small business:
- Commercial property insurance supports the physical assets of your small business that safeguard against risks.
- Commercial auto insurance explicitly covers vehicles used for business purposes.
- Inland marine insurance protects business property while it is being transported over land.
- General liability insurance offers businesses protection against liability claims.
- Worker compensation insurance supports when an employee becomes ill or injured due to their job.
- Errors and omissions insurance covers liability costs if a customer or client accuses you of making mistakes in professional services.
- Cyber liability insurance can cover recovery costs if a cyberattack or data breach affects your computer systems and data.
Best Small Business Insurance In The Market
Here are the best small business insurance in the market:
1. Allstate
| PROS | CONS |
| + Allstate Insurance provides an extensive selection of insurance products + It has built a reputable presence over the years + Allstate Insurance is accessible throughout the entire nation | – The premiums charged by Allstate Insurance may be comparatively higher than those of other insurance providers |
Allstate Insurance, a prominent insurance provider in the United States, caters to individuals and businesses with its diverse insurance offerings.
Allstate covers various aspects of insurance, including auto, home, renters, condo, landlord, and motorcycle insurance. Additionally, they extend their coverage to other areas, such as life insurance, retirement and investment products, business insurance, and roadside assistance.
Regarding business insurance, Allstate encompasses a comprehensive selection of options. They provide essential coverage such as general liability, commercial auto insurance, business owner policy, and professional liability.
However, workers’ compensation is not among the offerings provided by Allstate.
2. Next
| PROS | CONS |
| + Next Insurance offers flexible business insurance policies with a range of customizable coverages + Customers get a 10% discount when they purchase multiple policies + Next Insurance provides live certificates of insurance | – Next Insurance may have limited coverage options for specialized needs |
Next Insurance is an innovative insurance company operating digitally, offering tailored insurance solutions for small businesses in the United States. Their primary focus lies in providing comprehensive coverage to various industries.
This includes contractors, fitness professionals, photographers, consultants, and beauty and wellness practitioners.
A notable aspect of Next Insurance is its online platform, designed to empower small business owners by offering a streamlined insurance experience. This platform enables entrepreneurs to obtain insurance quotes quickly, make policy purchases, and efficiently manage their insurance requirements.
Customers can conveniently access the specific coverage they need through a user-friendly website and mobile application, eliminating the hassle of extensive paperwork and lengthy phone calls.
Next Insurance offers business owner’s policies at an affordable starting price of approximately $400 annually.
3. State Farm
| PROS | CONS |
| + State Farm has received the highest financial strength rating, indicating its strong financial stability + It has been ranked as a top company by J.D. Power, highlighting its excellence in customer satisfaction + State Farm offers customizable business owner’s policies with various coverage options | – To initiate a business insurance policy with State Farm, it is necessary to speak with an agent |
State Farm, a prominent insurance and financial services corporation, holds a central position as one of the largest companies in its industry within the United States.
Their extensive portfolio encompasses a diverse selection of insurance products, catering to various needs. These offerings include home insurance, life insurance, small business insurance, auto insurance, renters insurance, and health insurance.
In addition to its insurance offerings, State Farm extends its services to encompass various financial solutions. These include banking services, mutual funds, annuities, and retirement planning, enabling customers to address their financial needs comprehensively.
State Farm prides itself on its extensive policy selection, catering to diverse business requirements. Alongside standard policies like commercial auto insurance, business owner policies, and workers’ compensation, they also provide industry-specific coverage options.
These tailored solutions cater specifically to the needs of homeowners associations, ensuring comprehensive protection for these entities.
4. Nationwide
| PROS | CONS |
| + Has a vast network and is available across the United States + Well-established insurance company with a strong financial standing + Offers discounts to customers who bundle multiple insurance policies | – Lacks support for managing business policies |
Nationwide, a reputable insurance and financial services firm with roots in the United States has established itself as a trusted entity in the industry. Their comprehensive range of offerings caters to the needs of small business owners, providing them with a diverse selection of insurance products.
Among the solutions provided by Nationwide are business liability insurance, commercial property insurance, commercial auto insurance policies, and workers’ compensation insurance.
These tailored policies address small businesses’ unique requirements and risks, ensuring comprehensive coverage and protection.
Nationwide’s financial services division offers valuable assistance to individuals and businesses in retirement planning, investment strategies, wealth management, and asset protection.
Focusing on providing comprehensive financial solutions, Nationwide ensures clients can access the necessary tools and guidance to manage their wealth effectively.
One of Nationwide’s distinguishing features is its universal general liability coverage, which can be seamlessly incorporated into its range of other business insurance products.
This flexibility allows businesses to enhance their insurance coverage by adding general liability protection tailored to their needs and circumstances.
5. Travelers
| PROS | CONS |
| + Travelers has achieved outstanding financial strength ratings, highlighting its strong financial stability + It offers a variety of specialized policies, including cyber coverage, commercial auto and trucking, and ocean marine policies + Travelers provides extensive coverage for workers’ compensation | – The availability of coverage options may vary by state with Travelers |
Travelers Insurance, a renowned insurance company headquartered in the United States, is recognized for its extensive portfolio of insurance products and comprehensive risk management services.
With a strong presence in the industry, Travelers Insurance caters to diverse sectors, ensuring coverage across personal insurance, business insurance, bond, and specialty insurance. Their offerings span a broad spectrum, addressing the unique needs and risks individuals and businesses face.
Travelers Insurance offers a range of commercial insurance options, encompassing essential coverages for businesses. These include property, general liability, workers’ compensation, commercial auto, and professional liability insurance. They understand the diverse needs of businesses and strive to provide comprehensive protection.
Furthermore, Travelers Insurance offers specialized insurance tailored to specific industries beyond standard coverage. They provide industry-specific coverage for the construction, manufacturing, technology, and healthcare sectors.
This specialized approach ensures that businesses in these sectors receive the protection required to mitigate industry-specific risks and challenges.
Travelers Insurance provides businesses with valuable risk management services and tools, empowering them to identify and effectively address potential risks. Businesses can proactively mitigate risks and minimize potential losses by leveraging these services.
In addition, Travelers Insurance offers a flexible billing option known as TravPay. This convenient service operates on a pay-as-you-go basis, seamlessly synchronizing workers’ compensation premium payments with the payroll processing of your business.
6. Thimble
| PROS | CONS |
| + Offers on-demand, short-term insurance coverage + User-friendly mobile app + Affordable premiums | – Limited customizations |
Thimble is an innovative insurance technology company that specializes in catering to the insurance needs of small businesses and independent workers. Their unique focus lies in providing on-demand and flexible insurance coverage tailored to the specific requirements of their clients.
Thimble distinguishes itself by offering short-term insurance options, commonly called on-demand coverage.
Businesses and individuals can purchase insurance for specific periods or activities, ensuring they are protected when needed.
The flexibility offered by Thimble’s insurance solutions proves particularly advantageous for gig workers, freelancers, contractors, and small businesses that often experience varying insurance requirements.
Thimble’s versatile offerings are particularly advantageous for micro-businesses with fewer than 10 employees.
These businesses can benefit from Thimble’s flexible terms, such as the ability to procure insurance for the desired duration and the convenience of extending, modifying, or canceling policies directly through the user-friendly Thimble app.
7. Allianz
| PROS | CONS |
| + Well-established insurance company with a strong global presence + Comes with diverse insurance policies + Offers international coverage options | – Higher premium costs compared to some other insurance providers |
Allianz Insurance is a renowned global insurance and financial services company. With a strong presence in the industry, they provide a comprehensive suite of insurance offerings catering to personal and business needs.
Within the business insurance segment, Allianz offers an extensive array of coverage options designed to meet the specific requirements of diverse industries.
Their offerings include property insurance, liability insurance, commercial auto insurance, workers’ compensation insurance, and specialized coverages tailored for the construction, marine, aviation, and energy sectors.
Allianz strives to assist businesses in effectively managing and reducing risks through their comprehensive commercial insurance solutions.
Allianz offers risk consulting services across various industries, providing valuable guidance and expertise in risk management. In particular, their Crisis Management team specializes in supporting businesses when dealing with challenges related to terrorism, political violence, and hostile environments.
8. Progressive
| PROS | CONS |
| + Progressive Insurance offers a discount for bundling multiple business insurance policies together + As the second-largest business auto insurer in the country, Progressive provides extensive coverage for business vehicles + Progressive’s policies cater to a wide range of risks and cover various types of vehicles | – Live chat support is not available for online assistance with Progressive Insurance |
Progressive Insurance, recognized as a leading auto insurance provider in the United States, stands out for its forward-thinking approach to insurance, competitive pricing, and comprehensive coverage options.
Progressive Insurance covers various vehicles, including cars, motorcycles, boats, RVs, and other types of vehicles. Their expansive coverage options ensure that customers can find suitable protection for their diverse transportation needs.
Progressive offers a comprehensive range of auto insurance policies encompassing essential coverages and additional optional protections. Their auto insurance policies include collision coverage, uninsured/underinsured motorist coverage, liability coverage, comprehensive coverage, and other optional coverages.
Furthermore, Progressive specializes in providing coverage for unique circumstances. They offer specialized insurance for classic cars and high-value vehicles and even cater to the insurance needs of rideshare drivers.
In addition to its auto insurance offerings, Progressive extends its services to provide comprehensive coverage options for business owners.
Progressive offers a range of essential business insurance coverages, including professional liability, business owner’s policy, cyber insurance, general liability, workers’ compensation, and health insurance.
9. The Hartford
| PROS | CONS |
| + Well-established insurance company + Expertise in serving specific industries + Strong customer service | – Lack of online policy management |
Established in 1810, The Hartford is a prominent insurance and financial services company rooted in the United States.
The Hartford offers a broad spectrum of insurance coverage in diverse areas: auto, homeowners, renters, condo, and flood insurance.
With a long-standing history and experience in the industry, The Hartford provides customers with reliable and comprehensive protection in these essential areas.
Their commercial insurance offerings include general liability, commercial auto insurance, commercial property, and workers’ compensation. Moreover, The Hartford provides specialized coverages designed to meet the unique needs of specific industries, such as manufacturing, healthcare, construction, and technology.
Hartford offers the convenience of initiating claims through their user-friendly online platform. This streamlined process allows policyholders to start a claim, providing a hassle-free experience quickly.
10. Chubb
| PROS | CONS |
| + Chubb Insurance has received relatively few complaints considering its market share + It supports businesses with up to $30 million in revenue, providing coverage tailored to their specific needs + Chubb has achieved the highest financial strength rating, demonstrating its exceptional financial stability | – To initiate a business insurance policy with Chubb, it is necessary to speak with an agent |
Chubb Insurance, renowned as Chubb, is a prominent global insurance company that caters to the insurance needs of both individuals and businesses. With their extensive portfolio, Chubb provides various insurance products and services.
Chubb is an excellent choice for larger small businesses, as they offer robust support for businesses with revenues of up to $30 million.
To augment your business owner’s policy, you can enhance it with additional coverages and add-ons. These include professional liability insurance, equipment breakdown coverage, electronic data liability coverage, various property add-ons, crime coverage, earthquake coverage, and more.
Moreover, Chubb provides options for worker’s compensation, umbrella insurance, commercial auto coverage, and cyber risk coverage.
11. Huckleberry
| PROS | CONS |
| + Huckleberry provides a fully online process for obtaining quotes and submitting applications + Its policies are underwritten by reputable insurers such as Markel and Chubb + Huckleberry offers a wide range of customization options to tailor insurance coverage to specific business needs | – Huckleberry doesn’t offer employee benefits packages as part of their insurance solutions |
Huckleberry specializes in providing tailored business insurance products that address the specific requirements of small businesses across diverse industries. Their insurance offerings encompass a range of essential coverages, including general liability insurance, professional liability insurance, workers’ compensation insurance, and business owners’ policies.
These policies offer comprehensive coverage against various risks, including bodily injury, property damage, legal liabilities arising from lawsuits, and employee injuries.
Huckleberry provides an optional restaurant endorsement that can be added to their business owner’s policy.
This endorsement combines various food-specific coverages, including food contamination insurance, spoilage coverage, and ordinance or law equipment coverage, ensuring comprehensive protection tailored to the restaurant industry.
Furthermore, Huckleberry allows you to customize your business insurance policy by adding workers’ compensation, commercial auto coverage, and liquor liability coverage as needed.
This flexibility enables you to tailor your insurance coverage to the specific requirements of your business, ensuring comprehensive protection against potential risks.
Huckleberry provides a fully online quote and application process, ensuring a quick and seamless experience for obtaining coverage for your small business. This streamlined process allows you to secure the necessary insurance without delays efficiently.
Best Small Business Insurance: What It Doesn’t Cover?
There are situations in which small business insurance may not provide coverage. Small business insurance typically does not cover fraudulent or intentional acts, flood damage to your business, or wrongful termination.
Best Small Business Insurance: Cost
The specific coverage requirements determine the cost of small business insurance. Small business insurance typically ranges from $46 to $125 per month or $552 to $1,500 per year.
The premium for small business insurance is determined by various factors, including the nature of your business and its revenue, whether you operate from a rented or owned space, the coverage options you select and their limits, and the geographical location of your business.
However, the total cost is influenced by factors such as the industry in which the business operates, the number of employees, the specific coverage needs, and any relevant claims history.
FAQs (Frequently Asked Questions) On Best Small Business Insurance
1. What type of insurance is best for a small business?
Professional Liability Insurance offers protection against damages that may occur during the provision of services.
2. What are the 3 types of insurance most small businesses need?
There are 3 main types of insurance most small businesses need:
- Workers’ compensation coverage
- General liability coverage
- Commercial auto coverage
3. Who is the best insurance company for business?
Here are the best insurance company for business:
- Hiscox
- BiBerk
- The Hartford
- State Farm
- Next
- Huckleberry
- Thimble
- Chubb
Conclusion: Best Small Business Insurance
Small business insurance safeguards your business against various risks and potential financial losses. The optimal small business insurance package often includes a customized policy addressing your needs and risks.
It is advisable to consider several types of insurance coverage, including general liability insurance, property insurance, business interruption insurance, professional liability insurance, workers’ compensation insurance, and cyber liability insurance. These coverages address common risks and provide comprehensive protection for your small business.
Taking the time to evaluate the specific needs of your business, seek guidance from insurance professionals, and tailor a comprehensive insurance package is crucial. This ensures your small business receives the necessary protection and coverage to safeguard your operations.
I hope today’s article on the best small business insurance sounds helpful!
