Having business insurance is really important to protect your company and things you own. Insurance can cover expenses if your property gets damaged, if employees get injured at work, if someone sues your business, and more.
We think all kinds of businesses should get general liability insurance at the very least. But whether you need additional coverage depends on what industry you’re in, where your business is located, how many employees you have, and how much valuable stuff your company owns.
The team at money.com spent a ton of time researching the best small business insurance policies out there and gave a great breakdown of at least 15 insurance providers – like their requirements, how to apply, payment options, and more. The top 5 favorite companies include big names like Chubb, State Farm, and Travelers.
To find the right insurance for your small business needs, check out the top picks for the best insurance companies below.
Top Picks for the Best Business Insurance Companies
- Chubb – Best for customer satisfaction per their review
- State Farm – Runner-up for customer satisfaction
- Travelers – Recommended for workers’ comp insurance
- Nationwide – Top choice for general liability
- Progressive – Best for commercial auto
- CyberPolicy – Leading insurance marketplace
- Thimble – Ideal for micro businesses
- Liberty Mutual – Best umbrella insurance
Chubb – Customer Satisfaction Leader
Pros: Offers insurance for all business sizes, outstanding satisfaction ratings, few complaints for its size.
Cons: Not all policies have online quotes, $2M+ revenue requires local agent\
They call Chubb best for customer satisfaction, consistently ranking above average. With 140 years of experience, Chubb caters to small businesses via a dedicated website section. Small businesses can get BOP, workers’ comp, liability and other coverages, with online quotes if under $2M in revenue.
Review Highlights:
A.M. Best: A++
J.D. Power: 855/1000 (among highest)
Complaints: Low for its size
State Farm – Customer Satisfaction Runner-Up
Pros: Insures over 300 professions, customizable policies, live chat.Cons: Not all agents can cross state lines, claims by phone only.
They name State Farm the runner-up for customer satisfaction due to its top rating in J.D. Power’s commercial insurance study. State Farm has ranked in the top 3 for satisfaction the past 3 years, though with more complaints than their #1 Chubb.
According to their review, State Farm designs insurance for contractors, restaurants, professional services and retailers, with paperless billing. Offerings include BOPs, bonds, farm/ranch and extra liability coverages like professional, employment practices and directors/officers.
Highlights:
A.M. Best: A++
J.D. Power: 856/1000
Complaints: High
Travelers – Workers’ Compensation Leader
Pros: #1 workers’ comp insurer, A++ financial stability, wide agent network, commercial auto/cyber coverage.
Cons: Coverage varies by state, phone-only quotes/claim
According to the article, they selected Travelers as the best workers’ compensation insurance provider due to its excellent billing options and position as the top underwriter of workers’ comp policies.
They state Travelers offers adaptable workers’ comp coverage tailored to business needs. Risk control consultants assess insurance requirements through in-person or virtual visits. The TravPay service allows premium payments to sync with payroll.
The review notes Travelers has a significant workers’ comp market share and ranks in the top two for commercial auto insurance – indicating its popularity.
In addition to workers’ comp, the article lists other small business coverages:
- Business owner’s policy
- Professional liability
- Commercial umbrella
- Employment practices liability
- Management/professional liability
- Data breach
- Commercial auto
- Business income/extra expense
- General liability
- Commercial property
Key Highlights:
- A.M. Best: A++
- J.D. Power: 847/1000
- Complaints: Low
Nationwide – General Liability Pick
Pros: Offers BOPs for businesses up to $5M revenue, cybersecurity resources.
Cons: No disability/medical coverage, online chat, high complaint index.
They recommend Nationwide as best for general liability insurance. Customers can add industry-specific endorsements like liquor liability and personal/advertising injury.
Per the review, Nationwide provides liability, property, auto, and workers’ comp policies. General liability can be enhanced with:
- Fire legal liability
- Auto liability
- Umbrella coverage
- Employment practices liability
- Products/completed operations
- Directors and officers
- Liquor liability
- Personal/advertising injury
Highlights:
- A.M. Best: A+
- J.D. Power: 854/1000
- Complaints: High
Progressive – Commercial Auto Favorite
Pros: 2nd largest commercial auto insurer, bundling discounts, covers many risks/vehicles.
Cons: No online chat, limited discount availability
They chose Progressive for commercial auto insurance, available in 50 states for almost any vehicle type. Policyholders get unlimited travel radius and free coverage adjustments.
Progressive leads in commercial vehicle insurance for trucks, cars, emergency/military vehicles and more. Policies often include liability, physical damage, medical, uninsured motorist, hired/non-owned auto.
Additional business coverage mentioned:
- BOPs
- General liability
- Professional liability
- Workers’ comp
- Health insurance
- Cyber insurance
Highlights:
- A.M. Best: A+
- Complaints: High
CyberPolicy – Top Insurance Marketplace
Pros: Compare quotes from major carriers, get bundling discounts across insurers, speedy online process.
Cons: Claim filing through individual carriers, policy options vary by state.
They recommend CyberPolicy as the best business insurance marketplace. Partnering with top providers like Chubb and Liberty Mutual, it simplifies quote comparison. Cross-carrier discounts for bundling.
The company offers free quotes, 24-hour turnaround on purchases, and licensed advisors via chat. Coverage options include fidelity/crime, EPLI, lessor’s risk, and liquor liability.
Thimble – Micro Business Pick
Pros: Flexible hourly to monthly terms, instant certificates, covers 100+ professions.
Cons: No phone/chat support, unavailable in NY/WA.
They selected Thimble for micro businesses needing affordable short-term coverage, even hourly. Ideal for self-employed and on-demand workers.
Thimble provides cost-effective, adaptable liability insurance for various small businesses and freelancers. Micro enterprises (<10 staff) can extend, modify or cancel policies via app. Drone and event insurance offered.
Highlights:
- Underwriter A.M. Best Ratings: A
Liberty Mutual – Umbrella Insurance Leader
Pros: Mobile app for claims, 24/7 support, crisis management
Cons: Policies through independent agents, high complaints.
They named Liberty Mutual best for umbrella insurance. Base policy provides $25M coverage (up to $100M). Suits businesses wanting maximum liability protection.
Umbrella extends auto, watercraft and home policy limits. Includes $250K for crisis PR. Underwriters handle complex risks across industries.
Highlights:
- A.M. Best: A
- J.D. Power: 834/1000
- Complaints: High
We are partnered with industry leading carriers
- Nationwide
- Allstate
- Employers
- The Hartford
- Travelers
- Liberty Mutual Insurance
- Chubb
- Safeco Insurance
- Berkshire Hathaway Guard
- Am Trust
- Attune
- and many more..
Looking for a local insurance agent? Burbank Insurance Services, Inc. is here to help with your business insurance needs. We are a local insurance agency based in California. Burbank insurance specializes in business insurance risks.
Burbank Insurance is licensed to sell insurance throughout California. We also cover out of state locations in all 50 states through our strategic insurance alliance. We are here to help cover all of your business insurance needs.
Complete a quote form to get start!
*Disclaimer: Information on this website is general insurance advice. Please speak with a local insurance professional as they are able to analyze the nuances of your specific business. This is an important step to ensure you don’t have any unknown gaps in your coverage.
Runner Ups
NEXT Insurance – Tech-Focused Startup Option
Pros: Fully online enrollment, focuses on small businesses/self-employed, free unlimited certificates of insurance, low complaints.
Cons: Limited specialized policies, no dedicated agents, not ideal for larger high-risk businesses.
They explain NEXT uses AI to optimize applications and match customers with affordable policies. It offers 15 products, varying by state.
The review says NEXT didn’t make the top picks because it only suits tech-savvy owners preferring a digital experience. Its coverage may not suffice as businesses grow. However, they consider it a solid choice for startups needing basic insurance.
Simply Business – Quick Quote Comparison
Pros: User-friendly platform, industry-specific resources, partners with respected carriers like Travelers.
Cons: Weekday-only phone support, not a direct insurer.
Simply Business is an online broker providing fast quotes from multiple insurers. It suits those wanting to easily compare quotes or unsure of their coverage needs.
They didn’t rank Simply Business on top because it’s similar to their #1 marketplace pick but lacks cross-carrier discounts.
Hiscox – Experienced Small Business Specialist
Pros: 120 years of experience, policies tailored to smaller firms, low complaints.
Cons: Some products unavailable for online quotes/purchase, no coverage in Alaska, limited BOP availability.
The review states Hiscox has policy options well-suited for the self-employed or small businesses with few staff. Its BOP is restricted to businesses with under 10 employees in professional services.
They excluded Hiscox because its BOP only targets a narrow commercial segment and is unavailable in several states.
The Hartford – Bundling Discount Appeal
Pros: Nationwide workers’ comp, policy bundling discount, below-average J.D. Power score.
Cons: No Alaska/Hawaii coverage, can’t file claims on app.
They highlight The Hartford’s 3-in-1 BOP combining general liability, property and income insurance. It protects against income loss from fires, wind damage, theft, injury and advertising issues.
However, The Hartford didn’t match the top picks’ customer satisfaction or nationwide availability, so it was cut.
Geico – Auto Insurance Expertise
Pros: No cancellation fees, prorated refunds, live chat, online access.
Cons: Many products through Hiscox, limited commercial truck coverage, high complaint index.
According to the review, Geico offers business insurance for commercial and rideshare autos, general and professional liability, BOPs, and workers’ comp. Its auto experience makes it a strong choice for commercial and rideshare vehicle coverage, though these are pricier and lack online claims.
They excluded Geico from the top picks because, except for commercial auto, all its business policies are underwritten and administered by Hiscox.
CNA – Established but Could Improve Online Presence
Pros: Strong financial ratings, 100+ years experience, cyber and media liability options.
Cons: Negative online feedback, outdated web presence.
The article notes CNA has operated since 1897, initially insuring railroad workers. It now provides diverse business insurance products like fidelity, commercial crime, inland and ocean marine coverage.
However, they felt CNA didn’t make the cut because, while reputable, its website seems lackluster and difficult to navigate for users seeking to learn about its offerings online.
Business Insurance 101: A Comprehensive Guide
In this guide, we’ll break down the essentials of business insurance and how it fits into your company’s overall risk management strategy. We’ll cover the different types of policies available, typical costs, and steps for securing the best coverage at the right price.
How Business Insurance Works
Business insurance operates similarly to other insurance types. You pay a monthly premium to an insurer, who agrees to share a portion of your company’s risks. If a covered loss occurs, like a fire damaging your property, you file a claim for reimbursement. The insurer then assesses the damages and pays out the appropriate compensation. Claim processing varies based on the incident’s scale and policy type.
Common Types of Small Business Insurance
Insurers offer a range of products for small businesses, generally categorized as property or casualty insurance. These can be purchased individually or bundled. Some key policy types:
- General Liability: Covers claims/lawsuits for bodily injury, property damage, medical costs, libel/slander, and legal fees.
- Commercial Property: Insures against loss/damage to business assets like buildings, equipment and inventory due to perils like fire, burst pipes or theft.
- Business Owner’s Policy (BOP): Bundles liability, property and business interruption coverage into one policy for small/mid-size companies. May include cyber insurance.
- Cyber Liability: Covers expenses from data breaches, cyberattacks and online incidents. Crucial for e-commerce, tech and financial businesses.
- Workers’ Compensation: Mandatory for most small businesses with employees. Pays for medical care, lost wages and disability if a worker is injured on the job.
- Commercial Auto: Provides liability coverage for accidents involving company vehicles. Also covers vehicle damage and can extend to rented or employee-owned cars used for work.
- Professional Liability/E&O: Protects professionals like lawyers and accountants if a client alleges financial harm from negligence, errors or omissions.
Riders/Endorsements to Enhance Coverage
Additional options that can be added to base policies include:
- Commercial Property Floater: Covers movable business property on or off-premises.
- Business Interruption: Provides funds if a covered disaster halts operations.
- Key Person: Protects against financial losses if a critical employee becomes disabled or passes away.
What Business Insurance Typically Excludes
Even comprehensive policies have coverage limits. Common exclusions are:
- Intentional/criminal acts like arson or fraud
- Damage due to poor maintenance
- Catastrophic events like floods, earthquakes, war
- Separate flood or earthquake policies may be needed
If disaster strikes and your business needs financial assistance, start by checking eligibility for SBA programs. Firms damaged in a declared disaster can apply for SBA loans to fund repairs, asset replacement, operating costs and economic injury.
Private small business loans and lines of credit are also options – see our recommendations for top lenders.
Average Cost of Small Business Insurance
Per The Hartford, business insurance premiums average $70 to $261 monthly ($840 – $3,125 annually). Final costs hinge on your industry, employee headcount, coverage type and claims history. See the table for average monthly premiums by policy type.
Steps to Secure the Best Business Insurance Coverage
- Inventory business assets and their value to determine adequate coverage.
- List all business activities and assess the risk exposure of each.
- Consult an independent agent or marketplace specializing in commercial insurance for professional guidance.
- Get quotes for policies with comparable limits, deductibles and exclusions. Supplement with quotes from other providers on our list.
- Bundle policies when possible for discounted premiums and simplified account management.
- Review and adjust your coverage annually or whenever the business experiences significant changes.
Required Documentation for Business Insurance Applications
While specific requirements vary by policy type, generally have these details ready:
- Business name, address, entity type
- Registration/incorporation paperwork
- Assets and liabilities
- Bank account info
- Number of employees
- Contact information
- Health and safety procedures
- Professional certifications
- Projected revenue for the upcoming year
- Description of operations and occupational hazards
- Vehicle and driver information for commercial auto
- Prior insurance policies and claims history
By taking a methodical approach to assessing your company’s risk profile, seeking expert input, and comparing offerings from reputable providers, you can secure robust insurance protection. Making business insurance an integral part of your overall risk mitigation plan provides vital peace of mind, allowing you to focus on opportunities for growth.
Source Link: https://money.com/best-business-insurance/