Top Small Business Insurance Companies of 2024
Running a small business comes with its share of risks and uncertainties. From a fire that could devastate your inventory to an unfortunate accident where a client slips and falls in your office, unexpected incidents can pose significant threats to your livelihood. Small business insurance shields business owners from such unforeseen events, offering crucial protection and peace of mind. This comprehensive guide ranks the best small business insurance companies and provides detailed insights on choosing the ideal coverage for your needs.
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As a small business proprietor, you have numerous tasks and responsibilities to balance daily. It might be tempting to postpone purchasing insurance for your business while addressing more immediate concerns, but delaying could be costly. Unforeseen incidents, such as a devastating fire or a lawsuit from an individual injured on your property, can far exceed the cost of an insurance policy premium.
To aid you in selecting the appropriate small business insurance provider for your needs, we have curated a list of the top nine insurers, along with tips on what to look for, the types of insurance you may need, and the amount of coverage to consider.
Our Top-Rated Small Business Insurance Providers
# 1 Nationwide »
# 2 Hiscox »
# 3 (tied) Chubb»
# 3 (tied) Allstate »
# 5 The Hartford »
# 6 Travelers »
# 7 Liberty Mutual »
# 8 Progressive »
# 9 State Farm »
Nationwide »
- Includes equipment breakdown coverage as part of its standard business owners policy (BOP)
- Provides multiple options for obtaining a quote
- May not offer stand-alone commercial property policies
- Policy changes might require direct contact with an agent or the company
Coverage Options: Nationwide offers a broad range of insurance coverages tailored for small businesses across various industries. Its Business Owners Policy (BOP) is a comprehensive package that includes general liability, commercial property, business income coverages, and equipment breakdown. Purchasing a BOP is often the most effective way for businesses to secure commercial property coverage, as stand-alone policies may not be available.
In addition to BOPs, Nationwide provides various other insurance coverages including workers’ compensation, errors and omissions (E&O), employment practices liability, commercial auto, directors and officers (D&O) liability, cyber liability, and farm and ranch insurance. However, it does not offer medical malpractice insurance.
Contacting Nationwide: Customers have several options to start the quote process, which can be done online, by searching for a local independent agent, or by calling Nationwide directly. For policy management, policyholders can file and track claims using their online accounts or call Nationwide’s claims line. However, for making any policy changes, contacting an agent or calling the service line directly may be necessary.
Availability: Nationwide’s business insurance policies are available in all 50 states and Washington, D.C., ensuring broad accessibility across the United States.
Hiscox »
Pros:
- Provides certificates of insurance and allows for certain policy changes online
- Offers coverage for home-based businesses
Cons:
- Only offers commercial property coverage as part of a BOP or through a wholesale partner
- Does not provide coverage in Alaska
Coverage Options: Hiscox offers a variety of insurance policies for small businesses, including Business Owners Policies (BOPs), general liability, professional liability, and cybersecurity. Additionally, Hiscox partners with other insurers and third parties to offer more options such as short-term general liability, short-term professional liability, medical malpractice, workers’ compensation, employment practices liability, commercial auto, directors and officers (D&O), and commercial umbrella insurance. While Hiscox does not offer a stand-alone commercial property policy, property coverage can be obtained under a BOP or through one of its wholesale brokers.
Hiscox provides tailored coverage for home-based businesses, though it does not offer options for farm and ranch insurance.
Contacting Hiscox: Depending on the nature of the request, there are several ways to contact Hiscox. Claims can generally be reported by calling the insurer, contacting your agent, or completing an online form. Certain account updates and policy changes, such as updating the company’s address or adding a new authorized individual, can be requested online. However, for activities like billing updates or coverage changes, a phone call is required.
Certificates of insurance can be downloaded from Hiscox’s website by entering the policy number and email address. Quotes can be obtained online or by calling and speaking with a licensed agent.
Availability: Hiscox offers its business insurance policies in 49 states and Washington, D.C., with the exception of Alaska.
Chubb »
Pros:
- Extends business owners policies (BOPs) to companies with revenue of $30 million or less
- Offers a commercial package policy (CPP) for businesses needing broader coverage than a BOP
Cons:
- May require direct contact with an agent for a quote, depending on your business’s gross annual revenue
Coverage Options: Chubb’s business insurance policies range from essential coverages like general liability and professional liability to more specialized insurance options such as product recall insurance and global insurance. The BOP from Chubb is available for businesses with a maximum revenue of $30 million. For companies seeking more comprehensive coverage than a BOP, Chubb offers a commercial package policy (CPP) and a foreign package policy for small businesses conducting international business or sending employees abroad. Stand-alone commercial property coverage is also available from Chubb.
To determine the best coverage options for your small business, reach out to Chubb directly.
Contacting Chubb: Policyholders can process payments and file claims online without logging into a Chubb account. For quote requests, the method depends on your business’s gross annual revenue. Small businesses earning less than $2 million can use an online quote form and application review. For businesses earning more than $2 million, Chubb offers two options: locate a local agent or fill out a basic online form to have an agent contact you.
Availability: Chubb’s business insurance policies are offered nationwide, including Washington, D.C.
Allstate »
Pros:
- Includes equipment breakdown coverage as part of its standard business owners policy (BOP)
- Offers a home-based business endorsement
Cons:
- Doesn’t offer as many coverages as other insurers, including workers’ compensation
- Doesn’t offer online claims filing for business insurance policies
Coverage Options: Allstate’s business insurance offerings are relatively standard. However, it does not provide as many options as some competitors, including workers’ compensation, medical malpractice, directors and officers (D&O) liability, and farm and ranch insurance. Although Allstate doesn’t have its own workers’ compensation policy, agents can help obtain coverage through other carriers.
The insurer’s BOP may be the primary way for companies to secure commercial property coverage, combining general liability, commercial property, business interruption with extra expense, and equipment breakdown coverage. Allstate also offers endorsements to extend a business’s scope of coverage, including a home-based business endorsement that provides off-premises and credit card coverages.
Contacting Allstate: Policyholders will likely need to contact their agent or call the insurer directly for tasks such as filing a claim or updating account or policy information. Prospective policyholders can obtain an online quote or work with an Allstate agent.
Availability: Allstate provides small business insurance in all 50 states, plus Washington, D.C.
The Hartford »
Pros:
- Offers coverages like home-based business insurance, global insurance, and livestock insurance
- No waiting period for business income insurance
Cons:
- Doesn’t offer business insurance policies in Alaska or Hawaii
Coverage Options: The Hartford provides comprehensive insurance coverage options for small businesses. In addition to standard coverages like workers’ compensation and BOPs, it offers specialized insurance products such as global insurance for companies with international exposure and home-based business insurance. Although it doesn’t offer farm and ranch insurance, The Hartford provides livestock and animal mortality policies. Stand-alone commercial property policies are also available.
The Hartford’s business income coverage has a zero-hour waiting period and lasts until your business is ready to reopen, unlike traditional business income coverage, which typically involves a 48- to 72-hour waiting period and lasts only 30 days.
Contacting The Hartford: You can request a quote online, by calling, or by emailing The Hartford. Policyholders can report a claim online or over the phone. Business owners can obtain certificates of insurance, track claims, and request policy changes when they register for an online account.
Availability: The Hartford’s business insurance policies are available in 48 states plus Washington, D.C. Companies in Alaska and Hawaii will need to seek other options.
Travelers »
Pros:
- Offers a wide variety of business insurance products across multiple industries
- Provides several discounts for qualifying business owner policies
Cons:
- Doesn’t provide online quotes
- Requires you to reach out to your agent for policy management and questions
Coverage Options: Travelers offers an extensive range of business insurance policies, including commercial property, professional liability, employment practices liability, cybersecurity, workers’ compensation, and commercial umbrella insurance. While medical malpractice policies are not available, Travelers provides specialized coverage options like environmental liability insurance, boiler and machinery insurance, global insurance, and inland marine insurance.
Travelers’ Business Owners Policies (BOPs) come with several discounts that can save policyholders up to 35% on premiums, depending on factors such as state, risk level, and eligibility. Discounts may apply for paying in full, having multiple business policies with the insurer, paying on time, and maintaining a good insurance score.
Contacting Travelers: Travelers works exclusively with independent agents for its business insurance policies, so online quotes are not available. Policy management, updates, and questions must be handled through your agent. Claims can be filed through various methods, including filling out an online form, emailing a completed worksheet, or calling the insurer directly, depending on the type and severity of the loss. You can also file claims directly with your agent.
Availability: Travelers partners with agents across the U.S. and Washington, D.C.
Liberty Mutual »
Pros:
- Has coverage options for industry-specific exposures
- Offers a commercial package policy (CPP) for small businesses with complex insurance needs
Cons:
- Doesn’t offer online claims filing for standard property and casualty policies
- Doesn’t provide online quotes
Coverage Options: Liberty Mutual offers common types of insurance policies for small businesses, including commercial property, professional liability, workers’ compensation, and commercial auto. It also has specific coverage options for industries such as medical malpractice, farm and ranch, and contractors environmental legal liability.
In addition to its BOP, Liberty Mutual offers a Commercial Package Policy (CPP) for small businesses that require broader coverage and higher limits to protect against more complex risks.
Contacting Liberty Mutual: Online quotes are not available. Business owners can get a quote from an independent agent representing Liberty Mutual or from Tivly, a third-party partner. Small businesses cannot file property and casualty (P&C) claims online and must call Liberty Mutual’s claims line. However, larger businesses can file P&C claims via their online accounts.
Availability: Liberty Mutual operates in all 50 states and Washington, D.C. However, it will no longer offer its BOP in California as of Oct. 1, 2023.
Progressive »
Pros:
- Offers a wide range of coverages, including rideshare, liquor liability, garage liability, and home-based business insurance
- Provides a variety of quoting options
Cons:
- Only offers commercial property coverage as part of its Business Owners Policy (BOP)
- Only allows online claims filing for commercial auto policies
Coverage Options: Progressive provides a wide variety of small business insurance options, including BOPs, workers’ compensation, professional liability, and liquor liability. It also insures home-based businesses. For companies that use, service, or store vehicles, Progressive offers multiple coverages, including commercial auto insurance, rideshare insurance, and garage liability insurance.
However, commercial property coverage is not available outside of a BOP.
Contacting Progressive: Businesses can obtain a quote from Progressive by calling directly, locating an independent agent, or filling out an online application. Filing a claim may be more complex, as Progressive works with various affiliated and unaffiliated insurance companies to underwrite and issue most business insurance policies. Policyholders will need to check their policy documents to identify the insurance company to contact for reporting a claim.
For commercial auto policies issued by Progressive directly, claims can be filed online. However, BOP policyholders are required to call the claims line.
Availability: Progressive’s business insurance policies are available throughout the U.S. except in Hawaii and Washington, D.C.
State Farm »
Pros:
- Includes equipment breakdown coverage as part of its standard business owners policy (BOP)
- Allows you to link personal and small business insurance accounts for simultaneous policy management
Cons:
- Requires contact with a local agent for quotes and phone calls to file most claims
- May not offer stand-alone general liability or commercial property options
Coverage Options: State Farm offers its Business Owners Policy (BOP) to over 200 professions, according to its website. The standard BOP from State Farm includes general liability, commercial property, business interruption, and equipment breakdown coverage. This bundled approach may be the primary way for businesses to secure general liability and commercial property coverage, as stand-alone policies might not be available.
In addition to BOPs, State Farm offers various other insurance coverages including professional liability, workers’ compensation, commercial auto, employment practices liability, and farm and ranch insurance. However, it does not provide medical malpractice coverage.
Contacting State Farm: To obtain a quote, business owners will need to work with a local State Farm agent. Most claims need to be filed by calling the insurer, though commercial auto losses can be reported online. Customers who also hold personal policies with State Farm can manage both their personal and business accounts through a single portal. This portal allows users to obtain certificates of insurance, update their address, or contact their agent.
Availability: State Farm provides business insurance nationwide, including in Washington, D.C., making it accessible to business owners across the United States.
How To Choose the Right Small Business Insurance Company for You
Choosing the right small business insurance company can be a daunting task. Here are some essential tips to help you start your search and make an informed decision:
Determine What Coverages Your Business Needs
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- Evaluate Industry Risks: Identify the specific risks associated with your industry. For example, a construction company might need more comprehensive liability coverage compared to a tech startup.
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- Meet Requirements: Ensure that you meet any state, lending, or licensing requirements. Certain states or industries may mandate specific types of insurance.
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- Protect Your Assets: Consider what assets, equipment, and other items are vital to your operations and need protection.
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- State Availability: Check if the company offers the necessary policies in the state where your business is located.
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- Assess Financial Stability: By examining a company’s financial strength, you can gauge its ability to meet financial obligations when you file a claim. Look for ratings from agencies like A.M. Best, Moody’s, or Standard & Poor’s.
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- Claims Satisfaction: Research customer reviews and testimonials to see how efficiently and satisfactorily the company handles claims.
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- Policy Fit: Look for a company that offers the right policies and coverage limits tailored to your business needs.
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- Cost Comparison: Obtain quotes from multiple insurers. This allows you to compare premiums and see which company offers the best value.
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- Discounts: Check if the insurer provides any discounts for bundling policies, paying in full, or maintaining a good insurance score.
What Are Some Types of Business Insurance?
There is a wide variety of business insurance policies available, covering everything from general liability to kidnapping and ransom insurance. Here are some of the more common types of insurance that businesses typically consider:
Workers’ Compensation Insurance
Workers’ compensation insurance provides coverage if an employee is injured, killed, or falls ill on the job. This policy will cover medical bills, disability, and lost income. According to the Small Business Administration (SBA), this coverage is mandatory for all companies with at least one employee. In many states, workers’ compensation coverage is combined with employer’s liability under one policy.
General Liability Insurance
- Bodily Injury: Covers injuries to nonemployees, such as customers or clients.
- Property Damage: Covers damage to third-party property.
- Advertising and Personal Injury: Covers issues such as libel and slander.
Professional Liability Insurance
Also known as errors and omissions (E&O) insurance, professional liability insurance is for businesses that provide professional services or advice. It provides coverage when the business is negligent, makes a mistake, misrepresents information, or fails to meet the standards of service, resulting in a financial loss for their clients. Learn more about professional liability insurance.
Commercial Auto Insurance
Commercial auto insurance, also known as a business auto policy (BAP), insures the vehicles your business uses. Depending on the coverage selected, it can cover cars your business owns, rents, leases, or hires. It may or may not cover personal vehicles used for business purposes, so it's essential to check your policy for specifics. Commercial auto policies can include coverage for auto liability and physical damage.
Commercial Property Insurance
- Business Interruption
- Accounts Receivable
- Commercial Crime
- Equipment Breakdown
- Valuable Papers and Records
- Inland Marine
Equipment Breakdown Insurance
Equipment breakdown insurance helps cover sudden and unexpected mechanical breakdowns, electrical power surges, and other types of failure as outlined by the policy. It does not typically cover damages from wear and tear or perils like fire, theft, or vandalism, which are covered under commercial property insurance. This coverage can apply to various equipment, such as a computer in a law office or a stove in a restaurant, and can help repair or replace the equipment or machinery. It may also cover resulting loss of income and property damage. Learn more about equipment breakdown.
Best Workers’ Compensation Insurance Companies of 2024
According to the Small Business Administration, all businesses with employees are required to have workers’ compensation insurance. Therefore, if your small business has even one employee, you must carry some form of workers’ compensation insurance. Your state may provide exemptions and also regulate who is considered an employee for determining workers’ compensation requirements.
To help narrow your search for the best workers’ comp policy for your business, we’ve compiled a list of the Best Workers’ Compensation Insurance Companies.
When selecting a business insurance policy, it's crucial to understand the specific needs of your business and consult with an insurance agent to determine the best coverage options. By considering various types of coverage, you can ensure that your business is well-protected against potential risks and liabilities.
What Is a Business Owners Policy (BOP)?
A Business Owners Policy (BOP) is a comprehensive package policy that combines multiple types of coverage into a single contract, designed specifically for small to medium-sized businesses. Traditionally, a BOP includes:
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General Liability: Protects against claims of bodily injury or property damage caused by your business operations.
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Commercial Property: Covers damage to your business property, including buildings and contents owned by the company.
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Business Interruption (or Business Income): Provides compensation for lost income if your business is temporarily unable to operate due to a covered event.
Businesses can then add optional coverages based on their specific needs. Many insurance companies offer BOP products tailored to certain industries and may include additional coverages, such as equipment breakdown, as part of their standard policies.
According to the Insurance Information Institute (III), businesses with maximum annual revenues of $5 million and fewer than 100 employees are typically eligible for a BOP. However, high-risk industries may need to purchase a Commercial Package Policy (CPP) or individual policies instead. BOP eligibility can vary between insurers.
Benefits of a BOP:
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Simplified Management: With only one policy to manage, it’s easier to keep track of your insurance.
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Cost-Effective: Bundling coverages into a single policy can often be more affordable than purchasing separate policies.
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Comprehensive Coverage: A BOP can offer broad protection, covering multiple aspects of your business in one policy.
How Much Does Small Business Insurance Cost?
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Business Type: The nature of your business significantly impacts the cost. High-risk industries typically have higher premiums.
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Location: The state and specific location of your business affect insurance costs due to varying regulations, crime rates, and weather patterns.
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Number of Employees/Payroll: More employees and higher payrolls usually lead to higher premiums, particularly for policies like workers’ compensation.
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Coverage Limits: Higher coverage limits result in higher premiums.
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Claims History: A history of multiple claims can make your business appear riskier to insurers, leading to higher premiums.
Comparing quotes from multiple insurance companies with similar coverage limits and deductibles is the best way to find a policy that fits your budget while adequately protecting your business.
Is Business Insurance Required?
The requirement for business insurance depends on various factors, including the type of company, state regulations, and the licenses and certifications you hold.
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State Requirements: Each state has its own regulations regarding business insurance. For instance, most states require workers’ compensation insurance for businesses with employees.
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Contractual Obligations: Landlords or financing companies may require business insurance as part of lease or loan agreements.
Check with your state’s department of insurance and consult with an insurance professional to determine what coverage is required for your business.
How Much Small Business Insurance Coverage Do I Need?
The amount of coverage your business needs depends on several factors:
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Type of Business: Higher-risk industries, like construction, require more coverage than lower-risk businesses.
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Size of Business: Larger businesses with more employees and clients need higher coverage limits.
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Location: Different states have different coverage requirements. Also, businesses in high-risk areas (e.g., flood zones) may need additional coverage.
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Contractual Requirements: Lease agreements, property loans, and client contracts may stipulate specific insurance requirements.
Consult with an insurance agent, broker, or company representative to determine the appropriate coverage levels for your business.
How To Buy Small Business Insurance
Here are the steps to follow when purchasing insurance for your small business:
Assess Your Business’s Risks
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Employees: Determine if you need workers’ compensation insurance.
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Vehicles: If you have company vehicles, consider commercial auto insurance.
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Equipment: Evaluate the need for equipment breakdown insurance.
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Business Interruption: Consider business interruption insurance if a temporary closure could significantly impact your finances.
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Professional Liability: Assess whether you need professional liability insurance, especially if you provide services or advice.
Start Contacting Insurance Professionals
Talk to a licensed insurance broker or agent, preferably one familiar with your industry. They can help you navigate the process and gather quotes from multiple insurers.
Gather Quotes
Obtain quotes from several insurers, ensuring you compare the same types of policies and coverage limits for an accurate comparison.
Even after purchasing the right commercial insurance, it’s advisable to reevaluate your coverage annually to ensure it continues to meet your business’s needs.
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