Best Small Business Insurance Companies [Updated List]

Running a small business is no easy feat. The challenges are diverse, ranging from economic uncertainties to unexpected disasters. Small business insurance acts as a safety net, providing coverage for a variety of risks that entrepreneurs may face. Whether you operate a brick-and-mortar store, an online business, or a consultancy, having the right insurance is essential for long-term success.

Best Small Business Insurance Companies

The Hartford: Top Small Business Insurance Provider

Overall Rating: 4.56 / 5

Pros:

• In-house claims services
• Below national average customer complaints
• Insuring over 1 million small businesses

Cons:

• Quoting process may require agent assistance
• Same-day coverage not always available
• No mobile application for commercial policies

Key Features:

• Over 200 years of experience
• A+ (Superior) financial rating by AM Best
• Quick and customizable online quotes
• Diverse coverage options for various business types

Financial Stability: With a rich history spanning over two centuries, The Hartford maintains exceptional financial stability, boasting an A+ rating from AM Best.

Overview: The Hartford is our top choice for small business insurance due to its outstanding financial strength, customer satisfaction, and comprehensive policy offerings. Combining the convenience of insurtech with a wide range of coverage options, it caters to diverse businesses, from barbershops to construction companies.

Despite lacking a mobile app and occasional online quoting limitations, The Hartford's efficient digital experience allows users to obtain quotes, manage policies, and file claims online.

Cost & Coverage: For a clothing retail shop, a Business Owner's Policy (BOP) from The Hartford costs $1,150 annually. This inclusive coverage features $25,000 in business property, $1 million per occurrence, and $2 million aggregate in liability, encompassing business income, backup sewers and drains, and brand coverage.

Customer Satisfaction & Convenience: With over 1 million businesses insured, The Hartford receives fewer complaints than the national average. Its website offers resources tailored by state, providing valuable information on necessary coverage and local laws. Despite lacking a mobile app, 24/7 customer service ensures accessible support.

Next Insurance: Instant Coverage & Free COIs

Overall Rating: 4.37 / 5

Pros:

• Same-day coverage
• Quick online quotes
• Instant access to policy
• Unlimited free and shareable Certificates of Insurance (COIs)

Cons:

• No 24/7 call center
• Limited coverage for certain construction activities
• No direct sale of commercial auto insurance

Key Features:

• A- (Excellent) financial rating by AM Best
• Fast quoting system for instant online coverage
• Customized policies for businesses with fewer than 10 employees and up to $5 million in revenue

Financial Stability: Next Insurance boasts a strong financial position, earning an A- (Excellent) rating from AM Best.

Overview: Next Insurance excels in providing fast, online coverage for small businesses, particularly those with fewer than 10 employees and revenue up to $5 million. The company offers general and professional liability, inland marine, commercial property, employment practices liability insurance (EPLI), and workers’ compensation.

While lacking a 24/7 call center, Next Insurance's website and app streamline policy management and claims, earning high customer satisfaction with users praising its speed and ease of use.

Cost & Coverage: For a general contractor, Next Insurance offers three coverage levels: basic ($274.34 monthly), premier ($382.26 monthly), and deluxe ($462.51 monthly). These include various liability limits, coverage for tools, and additional features like office space protection.

Customer Satisfaction & Convenience: Next Insurance, a direct-to-consumer insurer, garners positive reviews for its convenience, with users praising its speed and simplicity. While lacking 24/7 phone support, the app provides comprehensive policy management options, contributing to its high customer satisfaction.

Chubb: Premier BOP Provider

Overall Rating: 4.37 / 5

Pros:

• Exceptional financial strength
• Policies available for various industries
• 24/7 call center

Cons:

• COI process unclear
• No app for commercial lines
• Quoting process may involve agent assistance

Key Features:

• Claims handled directly by Chubb
• Customizable BOP with numerous endorsements
• Online policy management and payments
• A++ (Superior) financial rating by AM Best

Financial Stability: Chubb, with roots dating back to the 1880s, boasts exceptional financial stability, earning an A++ (Superior) rating from AM Best.

Overview: Chubb stands out as a global insurer with a strong financial position and policies catering to small businesses across various industries. While its standard BOP covers core policies, a customizable BOP allows businesses to tailor coverage by choosing from a wide array of endorsements.

Although lacking a mobile app, Chubb emphasizes claims services, aiming to resolve claims within 48 hours. Despite potential limitations in online quoting, Chubb maintains high customer satisfaction.

Cost & Coverage: For a clothing store, Chubb offers a Business Owner's Policy (BOP) at $924 annually. This comprehensive coverage includes general liability, products and completed operations liability, business personal property, and optional endorsements.

Customer Satisfaction & Convenience: Chubb prioritizes customer service, with claims available online or through a 24/7 call center. While certain processes may require a call, Chubb maintains high customer satisfaction and efficient claims resolution.

Nationwide: Service Industry Coverage Specialist

Overall Rating: 4.31 / 5

Pros:

• Strong financial rating
• 24/7 availability
• Convenient quoting process

Cons:

• Agent assistance required to finalize policies
• Unclear COI process
• Limited online account services information

Key Features:

• Nationwide coverage for small businesses and agribusiness
• Tailored coverage for service industries
• Risk management services for enhanced safety
• A+ (Superior) financial rating by AM Best

Financial Stability: Nationwide, nearly 100 years old with over 500,000 small businesses insured, maintains robust financial strength, earning an A+ (Superior) rating from AM Best.

Overview: Nationwide excels in customer satisfaction, with zero complaints filed with state departments of DOI. It specializes in service industry coverage, offering tailored policies for various businesses within the sector.

While not the most convenient provider, Nationwide provides extensive coverage options and risk management services. Online quoting may redirect users to schedule agent meetings, but the company's commitment to customer service remains evident.

Cost & Coverage: For a beauty salon, Nationwide offers a Business Owner's Policy (BOP) at $503 annually, featuring $1 million per occurrence and $2 million aggregate in general liability and $25,000 in business property.

Customer Satisfaction & Convenience: Nationwide allows online policy management and claims filing, with 24/7 availability. Despite potential limitations in online quoting, Nationwide maintains strong customer satisfaction through its dedication to personalized service.

Hiscox: Ideal for Home-based Businesses

Overall Rating: 4.06 / 5

Pros:

• Same-day coverage
• Quick online quotes
• Online access to policy documents
• Home-based business pricing

Cons:

• No app for commercial lines
• No 24/7 customer service
• Higher limits require a call

Key Features:

• Fast online insurance for small businesses
• Home-based business pricing to reflect lower risk
• Online policy management and COI creation
• A (Excellent) financial rating by AM Best

Financial Stability: Hiscox demonstrates solid financial stability, earning an A (Excellent) rating from AM Best.

Overview: Hiscox excels in offering fast, online insurance for small businesses, particularly those with revenues under $300,000 and five or fewer employees. Home-based businesses benefit from tailored pricing reflecting lower risk, with the convenience of online policy management and a dedicated claims team.

Despite lacking a mobile app and 24/7 customer service, Hiscox's efficient online platform contributes to positive customer reviews.

Cost & Coverage: For a home-based artist seeking cyber insurance, Hiscox offers coverage at $259 annually, featuring $250,000 in occurrence and aggregate limits with a $10,000 deductible.

Customer Satisfaction & Convenience: Hiscox allows quick online quoting and policy purchase, with online policy management and claims filing. While higher limits may require a call, Hiscox maintains a user-friendly online platform, contributing to positive customer experiences.

Travelers: Top Choice for Retail Businesses

Overall Rating: 4.00 / 5

Pros:

• In-house claims
• 24/7 availability
• Extensive coverage options
• Dedicated hotline for policyholders

Cons:

• No online quotes
• Higher-than-expected complaints
• No mobile app for commercial customers

Key Features:

• Retail store BOP targeting various industries
• More than 40 coverage enhancements available
• Online policy management and COI requests
• A++ (Superior) financial rating by AM Best

Financial Stability: Founded in 1853 and operating globally, Travelers maintains a strong financial position, earning an A++ (Superior) rating from AM Best.

Overview: Travelers stands out for its policies catering to retail businesses, offering a Business Owner's Policy (BOP) with extensive coverage options. Despite not providing online quotes, Travelers emphasizes customer advocacy, with a dedicated hotline for policyholders.

With online policy management and COI requests, Travelers prioritizes customer satisfaction, though higher-than-expected complaints impacted its overall rating.

Cost & Coverage: For a quote, potential customers need to contact one of Travelers' independent agents. The retail store BOP includes various endorsements for enhanced coverage.

Customer Satisfaction & Convenience: While lacking online quoting, Travelers provides online policy management and COI requests. Claims and customer service are available 24/7, with a customer advocacy department ensuring prompt resolution. Despite occasional complaints, Travelers maintains a strong overall customer satisfaction score.

Key Considerations for Small Business Insurance

Types of Coverage

Before delving into the top insurance providers, it's essential to understand the different types of coverage available. General liability, property insurance, and professional liability are common options. A comprehensive policy often combines these to provide a well-rounded protection plan for your business.

Cost Factors

Affordability is a key concern for small business owners. The cost of insurance can vary based on factors like industry, business size, and location. We'll explore cost-effective options without compromising on coverage.

Customization Options

Every business is unique, and so are its risks. The best insurance companies offer customizable plans that allow you to tailor coverage according to your specific needs. This flexibility ensures you pay for what matters most to your business.

How to Choose the Right Insurance for Your Business

With a plethora of options, choosing the right insurance can be overwhelming. We'll guide you through the decision-making process.

Assessing Business Needs

Understanding your business's unique risks is the first step. We'll provide a checklist to help you assess your business needs and determine the type and amount of coverage required.

Budgeting for Insurance

Budget constraints are common for small businesses. We'll discuss how to allocate funds for insurance without straining your financial resources.

Reading Policy Terms

Insurance policies are laden with terms and conditions. We'll break down the jargon, ensuring you understand the fine print before committing to a policy.

Common Mistakes to Avoid

Even with the best intentions, small business owners can make mistakes when it comes to insurance. We'll highlight common pitfalls to help you steer clear of potential issues.

Underestimating Coverage Needs

Some businesses underestimate their coverage needs, leaving them vulnerable to unforeseen risks. We'll discuss how to accurately assess your coverage requirements.

Ignoring Policy Details

The devil is in the details. We'll emphasize the importance of thoroughly reviewing policy details to avoid surprises when it's time to make a claim.

Overlooking Customer Support

Customer support is often overlooked but can be crucial in times of need. We'll explore the significance of responsive and supportive customer service from insurance providers.

Frequently Asked Questions

What types of insurance do small businesses need?

Small businesses typically need general liability, property insurance, and professional liability at a minimum. The specific requirements may vary based on the nature of the business.

How does the cost of insurance vary for different industries?

The cost of insurance is influenced by factors such as industry risk, business size, and location. Industries with higher risks may have higher insurance premiums.

Can I customize my small business insurance policy?

Yes, many insurance providers offer customizable plans. This allows you to tailor coverage based on your business's unique needs.

What are common exclusions in small business insurance?

Common exclusions may include intentional acts, acts of war, and certain natural disasters. It's crucial to be aware of these exclusions when selecting a policy.

How often should I review and update my policy?

It's advisable to review your policy annually or whenever there are significant changes to your business. This ensures that your coverage remains relevant and adequate.

Conclusion: Securing Your Tomorrow

In the ever-evolving landscape of entrepreneurship, securing your small business with the right insurance is a strategic move. The Best Small Business Insurance Companies not only provide protection but also contribute to your business's overall resilience and success.