Running a business entails a wide range of tasks, and buying small business insurance is one of the most important. Small business insurance can help protect owners in case of unforeseen incidents, from a fire destroying inventory to an employee being injured on the job. Below, we have our rating of the Best Small Business Insurance Companies of 2023. We’ve also compiled information on how to find the best small business insurance company for you.
Our Best Small Business Companies Rating
#1 Hiscox
#2 Travelers
#3 Chubb
#3 Allstate
#5 State Farm
#5 Nationwide
#7 Progressive
#7 The Hartford
#7 Liberty Mutual
Compare the Best Small Business Companies of 2023
Hiscox Insurance Logo
#1
Hiscox
Best Small Business Insurance Company
4.3
U.S. News Rating
AM Best Rating
A
Report Claims Online
Compare Quotes
Travelers Renters Insurance logo
#2
Travelers
4.1
U.S. News Rating
AM Best Rating
A
Report Claims Online
See Review
Chubb Logo
#3 (tie)
Chubb
4.0
U.S. News Rating
AM Best Rating
A++
Report Claims Online
See Review
(Allstate Logo)
#3 (tie)
Allstate
4.0
U.S. News Rating
AM Best Rating
A+
Report Claims Online
See Review
State Farm Insurance logo
#5 (tie)
State Farm
3.9
U.S. News Rating
AM Best Rating
A++
Report Claims Online
See Review
Expand List
Best Small Business Companies in Detail
Hiscox
4.3
U.S. News Rating
Hiscox
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Best Small Business Insurance Company
PROS:
Wide variety of policies available
Offers online quotes
CONS:
May not be able to make policy changes online
Not available in Alaska
AM Best Rating
A
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Hiscox is the sole company in our rating that only offers business insurance products. It provides a wide variety of different policies including medical malpractice and short-term liability. A short-term liability policy provides general or professional liability coverage for shorter periods of time compared to traditional liability policies. This can be useful for contractors who only need coverage for the duration of a project, for example.
Contact Hiscox: You can get quotes through its website, and if you’re already a policyholder you can also manage some aspects of your policy. However, some changes may require speaking to your agent or broker. You can contact Hiscox through the number on its website.
Availability: While it is available throughout most of the U.S., Hiscox business insurance isn’t available in Alaska.
SEE FULL REVIEW »
Travelers
4.1
U.S. News Rating
Travelers
PROS:
Discounts available
Wide range of coverages available
CONS:
No online quotes available
May need to contact agent for policy changes
AM Best Rating
A
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Travelers has a wide variety of policies available that can provide coverage for environmental liability, or if your business operates internationally. In addition, it has standard policies like general liability and business owners policies.
Contact Travelers: To obtain a quote, you’ll need to speak to a Travelers agent or broker. As a policyholder, you’ll also need to speak to your agent or broker to make certain changes to your policy. You can also find several numbers to contact on the Travelers Contact Us page.
Availability: It offers policies in all 50 states and Washington, D.C.
SEE FULL REVIEW »
Chubb
4.0
U.S. News Rating
Chubb
PROS:
Variety of policies available
Some policies can be purchased online
CONS:
May need to talk to agent if you have questions about your policy
AM Best Rating
A++
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Chubb has a large number of policies available that can be tailored to specific industries. For example, it offers professional liability policies tailored for industries like finance and engineering. With such a large number of policies and customization available, talking with an insurance agent may be the best way to get the most of Chubb’s coverages.
Contact Chubb: Chubb clients can manage their policy accounts online, including claims reporting. However, you may need to speak to an agent in order to complete some transactions. Chubb also has a contact form and phone numbers listed on its Let Us Help page.
Availability: Chubb is available throughout the United States.
SEE FULL REVIEW »
Allstate
4.0
U.S. News Rating
Allstate
PROS:
Large number of policies, including some industry-specific coverage
Available nationwide
CONS:
No online quotes or claim filing
AM Best Rating
A+
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Allstate offers most of the main business insurance products, including business owner policy (BOP), general liability, professional liability, and commercial auto. It doesn’t appear to offer workers’ compensation, unlike every other company in our rating.
Contact Allstate: While you can get a quote online, you won’t be able to file a claim online. The latter may not be an issue if you prefer to work with a person when filing a claim. Allstate also lists several ways to contact the company on its Contact & Support page.
Availability: It is also available in all 50 states and Washington, D.C.
SEE FULL REVIEW »
State Farm
3.9
U.S. News Rating
State Farm
PROS:
Large number of policies, including some industry-specific coverage
Available nationwide
CONS:
No online quotes or claim filing
AM Best Rating
A++
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: State Farm offers a large number of policies, including standard policies like a business owner policy (BOP), commercial auto, and workers’ compensation. It also has industry-specific coverage, such as for condominiums and homeowners associations.
Contact State Farm: You won’t be able to get a quote online. You’ll have to work with a State Farm agent to obtain a quote. Given the number of policies available, this may be for the best. Policyholders also aren’t able to file a claim online. State Farm also has several phone numbers listed on its Contact State Farm page.
Availability: State Farm is available in all 50 states and Washington, D.C.
SEE FULL REVIEW »
Nationwide
3.9
U.S. News Rating
Nationwide
PROS:
Industry-specific policies available
Policyholders can file claims online
CONS:
Not available in five states
May not be able to purchase a policy online
AM Best Rating
A+
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Nationwide has policies designed for niche businesses like breweries, pet shops, and consulting firms. It also offers policies providing coverage for cybersecurity, employment practices, and directors and officers.
Contact Nationwide: Policyholders can file a claim online, but potential customers can’t purchase a policy online. You can also find a phone number for Nationwide on its Contact Us page.
Availability: Nationwide is available in all states except Alaska, Hawaii, Louisiana, Massachusetts, and New Jersey.
SEE FULL REVIEW »
Progressive
3.8
U.S. News Rating
Progressive
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PROS:
Offers a wide variety of policies
Online quotes available
CONS:
Lacks some industry-specific coverages offered by other companies in our rating
AM Best Rating
A+
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Progressive offers a number of different products ranging from business owner policies (BOPs) to cybersecurity, as well as a variety of commercial auto and truck coverages. Depending on your business, this may help to balance a lack of industry-specific coverages offered by other companies in our rating. For example, Progressive doesn’t offer medical malpractice insurance, nor does it sell farm and ranch policies.
Contact Progressive: Policyholders can find a phone number for Progressive on its Contact Us page. There is no available information on filing claims online for Progressive’s business insurance services. Progressive does offer online quotes.
Availability: It is available in all 50 states as well as Washington, D.C.
SEE FULL REVIEW »
The Hartford
3.8
U.S. News Rating
The Hartford
PROS:
Wide variety of business insurance policies
Available in all 50 states and Washington, D.C.
CONS:
Some regions have fewer agencies than others
AM Best Rating
A+
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: The Hartford has a lot of business insurance policies. If you look at its Ocean Marine policies alone it has Ocean Cargo, Marine General Liability, and Hull & Machinery policies. These policies can be tailored by adding endorsements to improve coverage. And if your business works across national borders it can provide multinational coverage as well.
Contact The Hartford: Policyholders can get a quote online through The Hartford’s website. If you want to contact the company, you can find specific phone numbers for business insurance customers on its Contact Us page.
Availability: The Hartford sells policies in all 50 states and Washington, D.C. However, some areas may not have the same density of agencies as others.
SEE FULL REVIEW »
Liberty Mutual
3.8
U.S. News Rating
Liberty Mutual
PROS:
Offers specialized coverage for niche industries
Available in all 50 states and Washington, D.C.
CONS:
May not be able to file claims online
No short-term liability policies
AM Best Rating
A
Can File Claims Online
General Liability
Professional Liability
Workers’ Compensation
Coverages: Liberty Mutual offers policies in all 50 states and the District of Columbia. It has a wide range of policies, including specialized coverage for niche industries like railroad and energy businesses. It doesn’t offer short-term liability or farm and ranch policies, but it does offer policies that cover equine and livestock.
Contact Liberty Mutual: Small businesses, which Liberty Mutual defines as companies with less than $250,000 in premiums, will be unable to file their claims online and will instead need to call the company to do so. You can also find contact information for Liberty Mutual on its Get Customer Support Now page.
Availability: Liberty Mutual is available in all 50 states and Washington, D.C.
SEE FULL REVIEW »
Best Workers’ Compensation Insurance Companies of 2023
According to the Small Business Administration, all businesses with employees are required to have workers’ compensation insurance. So, if your small business has even one employee, you will be required to carry some sort of workers’ compensation insurance. Your state may provide exemptions and also regulate who is considered an employee for the purposes of determining workers’ compensation requirements. We’ve compiled a list of the Best Workers’ Compensation Insurance Companies of 2023 to help narrow your search for the best workers’ compensation policy for your business.
Hiscox Insurance Logo
#1
Hiscox
Best Small Business Insurance Company
4.3
U.S. News Rating
AM Best Rating
A
File Claims Online
Compare Quotes
Travelers Renters Insurance logo
#2
Travelers
4.1
U.S. News Rating
AM Best Rating
A
File Claims Online
See Review
Chubb Logo
#3
Chubb
4.0
U.S. News Rating
AM Best Rating
A++
File Claims Online
See Review
State Farm Insurance logo
#4 (tie)
State Farm
3.9
U.S. News Rating
AM Best Rating
A++
File Claims Online
See Review
#4 (tie)
Nationwide
3.9
U.S. News Rating
AM Best Rating
A+
File Claims Online
See Review
Expand List
How To Choose the Right Small Business Insurance Company for You
Choosing the right small business insurance company can be confusing. Here are some tips to start your search.
Determine what coverages your business needs. This includes looking to see if the company offers the policies you need in the state your business is located.
Look at a company’s financial strength. By looking at a company’s financial strength, you can get an idea of how capable a company is of meeting its financial obligations in the event you need to file a claim. All the companies in our rating have an AM Best rating of A or higher as of the date of publication. According to AM Best, an A rating means a company has an “Excellent” ability to meet its financial obligations.
Get quotes. You’ll want to look for a company that offers the right policies, coverage limits, and price. Getting quotes from multiple insurers is a good way to research your options.
What Are Some Types of Business Insurance?
There is a wide variety of business insurance policies out there. You can find coverage for everything from general liability to kidnapping and ransom insurance. These are some of the more common types of insurance available:
Workers’ compensation insurance provides coverage in case an employee is injured on the job. If that happens, the policy will provide coverage for medical bills, disability, and lost income. The Small Business Administration (SBA) says that this coverage is required for all companies with at least one employee.
General liability insurance provides coverage against things like:
Bodily injury to non-employees, such as customers or clients
Property damage
Libel and slander
This policy may cover other types of risks as well, so read your policy to know what exactly this will provider coverage for.
Professional liability insurance, sometimes referred to as Errors and Omissions (E&O), provides coverage for financial damages as a result of a mistake your company makes. Examples include professional negligence and failure to meet standards of service.
Commercial auto insurance, also known as a business auto policy (BAP), provides insurance for the vehicles your business uses. This policy may or may not cover your private vehicle if you use it for your business, so check your policy for clarification. Commercial auto policies will typically cover auto liability and auto physical damages coverages.
Commercial property insurance is sometimes referred to as business property insurance. It is similar to a homeowners insurance policy in that it provides coverage for the physical structure of the building where your business is located, as well as its contents. This can include everything from inventory to furniture and even your documents. If your business suffers property damage from a covered loss such as a fire, this is when a commercial property policy would come into play. Also like a homeowners policy, you can often choose between actual cash value and replacement cost to assess the value of covered property.
Equipment breakdown insurance is specifically for equipment that you use in your business. This could be a computer in a law office or a stove in a restaurant. It provides coverage either to repair or to replace the broken equipment. It will also sometimes cover damage to property caused by the equipment breaking down.
What Is a Business Owners Policy (BOP)?
A business owner policy (BOP) doesn’t provide a single type of coverage, but instead combines several different coverages into one policy. BOP typically includes both liability and property coverage in a single policy. Depending on the insurance company, it may also include other types of coverage such as business interruption or continuation coverage. Another benefit for small business owners is that a BOP can save money over purchasing the policies separately.
But a BOP may not be the only insurance policy a small business needs, as it generally doesn’t include commercial auto or workers’ compensation coverages.
How Much Does Small Business Insurance Cost?
Because there is a wide variety of factors that go into determining the cost of business insurance premiums and insurance companies may have different underwriting processes to determine a small business’s level of risk, it can be difficult to provide a definitive answer as to the cost of premiums. Here are some of the factors that go into determining how much your business will pay in premiums for insurance coverage:
Type of business. The type of business you run will play a large part in how much your premiums will be, as it can help determine what types of policies you are legally required to carry as well as the level of risk an insurer will have providing you with coverage. For example, a commercial gym with lots of customers, equipment, and a physical location will likely have a higher level of risk and required coverage than a self-employed editor working out of a home office, who doesn’t have clients visiting their home.
Location. Where your business is located will play a significant role in determining the cost of business insurance. While the federal government mandates some types of insurance, states will also have regulations as to what types of coverage is required for businesses.
Number of employees/payroll. The more employees you have, the higher your premiums will be for certain types of insurance like general liability. Payroll can also factor into premiums for certain types of policies, such as workers’ compensation.
Claims history. As with many types of insurance, those with multiple past claims may be considered a higher risk to insure and have more expensive premiums as a result. The same is true for business insurance.
Coverage limits. The more coverage you have, the higher your premiums will be.
This is not intended to be a comprehensive list of factors that determine premiums, but instead a place to start in helping you understand what goes into determining insurance premiums for business insurance coverage.
Is Business Insurance Required?
Depending on the type of company you own and what state you live in, business insurance may be required. For example, the Small Business Administration (SBA) states that if a business has employees, then workers’ compensation, disability, and unemployment insurance are required by the federal government. But, states can provide exemptions and may regulate who counts as an employee for the purposes of determining whether workers’ compensation insurance is required for your business. Check with your state’s department of insurance to determine what coverage is required.
Regardless of the state and federal government requirements, your landlord may also have business insurance requirements if you’re leasing space.
What types of coverage should I get?
The types of coverage your business needs will depend on a number of factors, including any requirements from the federal and state governments, as well as your landlord. You should check with your insurance company, agent, or broker for more information.
How Much Small Business Insurance Coverage Do I Need?
This will be based on a number of factors such as:
Type of business you have. Some industries, such as certain kinds of manufacturing, come with higher associated risks than other types of business.
Size of your business. Larger businesses with more employees and a larger client base will require larger amounts of coverage than smaller ones.
Location of your business. Different states may require different levels of coverage.
These are just a few examples of items that can affect the amount of coverage you require. For more information, check with your insurance agent, broker, or company, as they should be able to offer guidance specifically tailored for your business.
How To Buy Small Business Insurance
Here are some steps to take in purchasing insurance for your small business:
1. Assess your business’s risks. According to the Insurance Information Institute (iii), one of the first things you’ll want to do is assess your risks. This can take the form of asking questions about how your business operates. For example:
Do you have employees? If so, according to the Small Business Administration (SBA), you’ll be legally required to have a workers’ compensation policy.
Do you have company vehicles? If you do, this could indicate a need for commercial auto insurance.
Do you depend on expensive equipment to run your business? As an example, if you run a small machine shop, you may require some very expensive equipment in order to effectively operate. Do you have the funds on hand to repair or replace that equipment if it were to break down?
Are you prepared if your business needs to shut down? Does your business have the financial reserves to survive if you need to close shop temporarily, such as for making major repairs? If not, business interruption insurance may be something to discuss with your insurance agent or broker.
Do you work in an industry where a professional liability policy is needed? This could be a generic professional liability policy or a policy tailored to your industry, such as medical malpractice. If you’re in an industry where there is a chance of being sued over your work, this may be something to discuss with an insurance professional.
These are just a few examples of questions to ask when assessing your risk. Knowing what types of risks you face will help determine what types of coverage you should be looking at.
2. Start contacting insurance professionals. Talking to a licensed insurance broker or agent can be a great way to ease you through the process of buying commercial insurance and help you collect quotes from multiple insurers. If you can find a broker or agent familiar with your industry, that can really help speed up the process of what local business insurance requirements you’ll have to meet.
3. Gather quotes. As when shopping for other types of insurance, you’ll want to get quotes from several different insurers. Make sure you’re getting quotes for the same types of policies and coverage levels for the most accurate comparison.
Even after finding the right commercial insurance company for you, it is recommended that you re-evaluate your coverage on an annual basis.
Small Business Insurance FAQ
What does business insurance typically exclude?
This all depends on the type of business insurance you choose. As stated above, there are various types of business insurance, including workers’ compensation insurance, general liability insurance, and commercial auto insurance. A workers’ compensation insurance policy won’t have the same inclusions and exclusions as a general liability insurance policy.
If you have questions about what is specifically excluded from your small business insurance policy, contact your insurance agent/broker or insurance company for clarification.
Do I need small business insurance if I work from home?
According to the Insurance Information Institute, all businesses should be insured, even home-based businesses. While your homeowners insurance policy may cover some business-related equipment, the coverage limits may be too low and may not provide all the types of coverage you need.
Does small business insurance cover remote workers?
Whether or not your business insurance policy covers remote workers will depend on your specific policy. If you’re not sure whether your policy covers remote workers, reach out to your insurance agent, broker, or company for clarification.
Do I need small business insurance if I don’t have employees?
You may not be required to purchase workers’ compensation if you don’t have employees. However, that doesn’t necessarily mean you won’t need some form of small business insurance, whether that is a business owners policy, commercial auto, or a professional liability policy.
How can I save money on a small business insurance policy?
You can start the process of saving money on business insurance even before you have a policy by getting quotes from multiple companies. Insurance companies don’t have the same prices for the same policies and coverage limits, so you may be able to find lower prices for the same policies and amount of coverage.
Another way to save is to ask your agent, broker, or insurance company about discounts. For example, Hiscox offers a 5% rate reduction to customers who have more than one policy with the company.
Learn More
For more information on small business insurance read our other pages.
Best Small Business Insurance Companies of 2023
Best Workers’ Compensation Insurance Companies of 2023
Allstate
Chubb
Hiscox
Liberty Mutual
Nationwide
Progressive
State Farm
The Hartford
Travelers