Best Small Business Insurance Companies for September 2024

With small business, you never know when certain kinds of crises could hit. Will a customer sue your business? Will a natural disaster wipe out your facilities? A good small business policy could save you thousands of dollars or more if you ever face such unhappy circumstances. 

 After extensive research, our experts found that Next is the best business insurance company overall because it offers a wide range of policy types and an easy online application process that lets you sign up in about 10 minutes.

To choose the best commercial insurance companies for small businesses, we evaluated 19 national and regional insurers on 53 criteria in the following categories: cost, quote and application experience, customer satisfaction, coverage, accessibility, and financial stability.

Best Small Business Insurance Companies for September 2024

Our Expert Picks for Small Business Insurance in Any State

The size of your small business may dictate the type of business insurance you need and which insurance company is best for you. For a low-cost BOP and quick online coverage, compare quotes from Next, Huckleberry, and BiBerk. Independent contractors and event workers will be best served by Hiscox or Thimble. Consider The Hartford and BiBerk if you’re most concerned with workers' compensation. If you need extensive coverage, including an employee benefits package, you’ll be best served by companies like State Farm and Chubb.

Keep in mind that you may have specialized coverage needs for your industry that a standard business owner’s policy doesn’t include. Some companies offer more enhancements than others. When narrowing down your options, ensure you choose a provider that protects your business from common risks in your industry.

What Is Small Business Insurance?

Business insurance, sometimes called commercial insurance, covers your business's assets and income in case of unexpected events during normal business operations, such as lawsuits, natural disasters, or accidents. There are many types of business insurance products, including coverage for property damage, legal liability, and employee-related risks, among others. A business owner's policy (BOP) includes general liability coverage, business property coverage, and business interruption coverage.

You may also want to add other kinds of coverage such as for commercial cars, errors and omissions, and key employees.

Pros and Cons of Small Business Insurance

Pros of Small Business Insurance

  • Protects company assets: Business insurance protects your company’s financial assets from losses resulting from damage to your property or third-party negligence claims.
  • Safeguards employees: Workers’ compensation insurance pays the cost of medical treatment and lost wages for workers injured on the job.
  • May fulfill legal or contractual obligations: State laws may require you to buy workers’ compensation, auto liability, or other types of insurance. Likewise, contracts you sign may require you to buy specific kinds of insurance, such as general liability or auto liability insurance.
  • May boost the company’s reputation: When your business is insured, it’s a sign to customers and business associates that you care about your company and managing its risks.

Cons of Small Business Insurance

  • Cost: Business insurance premiums can be a significant expense, especially for a small company.
  • Exclusions, limitations, and availability issues: All insurance policies exclude or restrict coverage for some risks. Insurers may refuse to cover some risks you want to insure or they may limit coverage you feel you need.
  • Documentation requirements: Whether you’re applying for new insurance or filing a claim under an existing policy, you must comply with the insurer’s documentation requirements. Some insurers’ requirements can be cumbersome.
  • Adjustment and payment delays: Once you’ve suffered a loss, you must file a claim and wait for an adjuster to assess the damage before making repairs. If the adjuster is slow to respond, repairs and claims payments may be delayed.

 How Much Does Small Business Insurance Cost?

In general, a business owner's policy starts at $300 to $500 a year, according to research into six insurers. The lowest premiums for professional liability also ranged from $300 to $500, and premiums for general liability insurance started at $200 to $400.

How to Choose a Small Business Insurance Company

Here’s a step-by-step process for choosing the best insurance company for your small business: 
  • Ask trusted colleagues, business associates, or other business owners for recommendations.
  • Check online reviews of business insurers. This list is a good start, but check out reviews from several sources and compare the results.
  • Consider market share rankings from sources like the National Association of Insurance Commissioners. While large insurers aren’t necessarily better, most have a long track record and are financially stable.
  • Consider how you want to buy insurance: directly from an insurer or through an agent? Online or in person?
  • Compare quotes, considering coverage, limits, deductibles, and other features each offers, not just the price.

Frequently Asked Questions

What Is Umbrella Insurance?

Umbrella insurance provides extra liability coverage, extending the limits of other policies such as general business liability and commercial auto insurance. It provides an additional layer of security to those who are at risk of being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander, and invasion of privacy.