A limited liability company (LLC) needs insurance just like any other business entity, but different policies cover different risks. The type of coverage you get is contingent on what your LLC does and how it does it. For example, most LLCs need general liability, but those that offer professional services also need professional liability coverage.
The top companies for LLC insurance we found are:
- CyberPolicy: Best for finding tailored and affordable general liability insurance
- The Hartford: Best for workers’ compensation policies
- Progressive Commercial: Best for commercial auto insurance
- Embroker: Best for startup tech-based LLCs backed by venture capital
- CommercialInsurance.net: Best for low-cost coverage
CyberPolicy: Best for General Liability Insurance
CyberPolicy is an online property and casualty insurance platform that works with top-rated carriers to search out the best policy for their clients. As a platform, it uses an artificial intelligence (AI)-driven questionnaire to get to the heart of what a business needs by way of insurance and then pairs that business with the best carriers. This gives the business the widest net to choose from when it comes to finding general liability insurance for the right price.
Strengths | Weaknesses |
|---|---|
AI-driven application | Lesser known brand |
Multiple quotes to compare | Customer service defaults to carrier |
Top-tier partners | |
Policies starting at $30 a month | |
Experts in cyber risks |
Available Policies
In addition to general liability insurance, CyberPolicy offers a variety of key policies, including:
- Business owner’s policies (BOP)
- Professional liability
- Workers’ compensation
Additionally, LLC owners can get specialized policies like cyber insurance and directors’ and officers’ insurance (D&O). Those using vehicles for work might want to inquire about commercial auto insurance too.
Costs
For BOPs that include general liability, CyberPolicy pricing starts as low as $20 per month. This minimum premium can increase to $70 per month or more for small businesses with higher risk, such as a construction company. Other minimum annual premiums include:
- Professional liability insurance: $240
- Cyber insurance: $120
- D&O insurance: $120
- Workers’ compensation insurance: $240
Additional Features
CyberPolicy uses the latest technology to help ascertain what type of insurance a company needs, how much coverage is required, and where to best get the policy from. It partners with major national carriers such as Nationwide and Liberty Mutual, giving customers the confidence that they’ll get quality protection for their business. Policies can be chosen within minutes from starting the application, with coverage commencing in as little as 24 hours.
The Hartford: Best for Workers’ Compensation Insurance
Workers’ compensation policies can be frustrating, especially when you’re hit with a bill after a premium audit. The Hartford’s XactPAY Payroll Billing, a pay-as-you-go workers’ comp plan, simplifies the audit process by using actual payroll data to charge an accurate premium every month. This way, there are no surprises when the audit comes, and you can budget policies confidently.
Strengths | Weaknesses |
|---|---|
Trusted name in small business insurance | No chat option |
Extended reporting periods for injury claims | Not available in Alaska or Hawaii |
170 payroll providers including QuickBooks | |
Industry-specific business owners policies | |
A+ (Superior) AM Best rating |
Available Policies
The Hartford is widely known as a small business insurance leader with all types of commercial insurance available. Aside from workers’ compensation insurance, LLC owners can get one of the most comprehensive business owners’ policies available. The Hartford also offers general liability and professional liability to a multitude of industries.
Costs
Like most insurers, The Hartford tailors prices specific to each LLC that applies. The cost for workers’ compensation considers the job classification of employees and how much risk their work includes, the business’ payroll, and an experience rate modifier that represents the business’ claims history. As such, rates vary widely from a few hundred dollars a year to thousands.
For all types of insurance policies, The Hartford is most competitive for professional industries where employees work in an office setting. Its business owner’s policy starts as low as $300 annually, and you can add an endorsement to get more coverage for as little as $100.
Additional Features
If you’re looking for the biggest bang for your insurance buck, The Hartford doesn’t disappoint. Its workers’ compensation policies offer more coverage without charging more for offerings like stop gap coverage and extended reporting periods. It does the same with its BOPs, offering a broad form policy for a baseline price.
Its biggest appetite is for professional services companies that work in office settings, but it offers policies in 23 industries.
Progressive Commercial: Best for Commercial Auto Insurance
Where many commercial auto insurance companies limit the types of commercial auto policies they will write, Progressive Commercial has the most comprehensive list out there. It’ll underwrite everything from a standard auto used for business to tow truck insurance and food truck insurance. We find the insurer to be the most comprehensive commercial auto insurance company with the best reputation.
Strengths | Weaknesses |
|---|---|
45 years of commercial business experience | Brokers commercial lines (except auto) out to other carriersNo chat option |
Auto coverage for vehicles as large as semi-trucks | Works with independent agents so customer service can vary widely |
Commercial vs Personal Insurance Assessor Tool | |
Nine available discounts for business auto policyholders | |
A+ (Superior) AM Best rating |
Available Policies
Progressive Commercial underwrites more than 1 million commercial auto vehicles in-house. However, it brokers out its other commercial policies, including general liability, professional liability, workers’ compensation, and cyber insurance. LLCs looking for a comprehensive policy that covers both liability and business property can get a BOP through Progressive Commercial as well.
Costs
The costs for Progressive Commercial business auto insurance vary widely, depending on the year, make, and model of the car, as well as the driving history of the employee behind the wheel. That said, the 2019 national average for commercial auto insurance through Progressive Commercial was $183 per month. This was for business auto and contractor customers―many of whom would have an LLC business ownership.
Additionally, Progressive Commercial offers numerous discounts, including some for:
- Having three or more years of business experience
- Maintaining a BOP or general liability policy
- Paying in full at the beginning of the policy
Additional Features
Progressive Commercial’s Commercial Insurance wants to make sure that business owners understand what they need and how to get the right policy to fulfill that need. To that end, it’s created two useful tools to help business owners save money:
- Commercial vs Personal Insurance Assessor: Business owners can use this to determine if a less expensive personal insurance policy will suffice for occasional business needs.
- Vehicle Coverage Advisor: This helps owners get the right amount of coverage to protect against their risks.
Embroker: Best for Tech-based Companies
Embroker is another online insurance brokerage that delivers fast quotes and allows LLC owners to purchase coverage immediately. However, its standout feature is insurance for tech startup companies backed by venture capital funds. These LLCs can get premium credits of up to 25% on essential policies. Plus, Embroker offers broad liability insurance for LLCs in the tech industry, including a unique errors and omissions policy that includes breach of contract claims.
Strengths | Weaknesses |
|---|---|
AI-driven application process | New online insurance company |
Expedited online instant purchase on many products | Limited industry coverage |
Online chat service | |
Competitive pricing | |
A+ (Superior) AM Best rating |
Available Policies
Embroker excels when it comes to cyber insurance and data breach coverage, which includes technology errors and omissions insurance, a professional liability coverage, for tech companies. The company also has one of the least expensive directors’ and officers’ liability policies available and offers workers’ compensation, professional liability, BOPs, and commercial crime.
Costs
Embroker states on its website that it is difficult to give an exact estimation of costs for a business insurance policy because there are so many variables that go into the pricing. These variables include the type of insurance being bought as well as the business’ industry, claims history, and annual revenues.
This broker does offer a range that businesses can expect to pay for a business owner’s policy: $500 to $2,000 per year. Businesses with less risk, such as those in an office setting, most likely pay less than a manufacturer or contractor.
Additional Features
Embroker is a true insurance technology (insurtech) company that has built an easier way for small businesses and startups to get coverage. By using AI-driven applications, it can customize policies based on the industry, size, and capitalization of a new company. Plus, Embroker has started developing its own policies with better pricing. Its largest appetite is for technology startups, where it can offer competitive pricing to meet the most robust insurance needs.
CommericalInsurance.net: Best for Low-cost Professional Liability
As an LLC, you know that getting the right policy for the absolute best price is important to your bottom line. CommercialInsurance.net helps you do just that. As an insurance referral service, it partners with more than 200 top-tiered insurance carriers, agencies, and brokers to shop your policy around. After a quick application, you are paired with the best candidate for your liability needs.
Strengths | Weaknesses |
|---|---|
More than 200 partner top-rated carriers | Doesn’t underwrite its own policies |
Simple application | Customer service varies from carrier to carrier |
Knowledgeable representatives | |
Able to place high-risk industries |
Available Policies
As their name suggests, CommercialInsurance.net offers the entire gamut of commercial insurance lines. Available policies include standard BOPs, general liability, and commercial umbrella insurance. LLCs can also get professional liability and workers’ comp insurance through CommercialInsurance.net. Those needing specialty types of policies, such as cyber insurance and D&O, should speak with a customer service representative.
Costs
CommercialInsurance.net is a referral service, not an insurer, so it has no control over how much any one policy costs. However, because CommercialInsurance.net works with more than 200 partners, it can often negotiate some of the lowest prices available. This may be particularly valuable for LLCs owners who need professional liability, a fairly expensive coverage with a median annual cost of $713. When it comes to other lines of insurance, LLC owners can expect to see costs competitive with the marketplace.
Additional Features
Unlike many top-tiered carriers and brokers, CommericalInsurance.net focuses exclusively on business insurance, leaving personal lines of insurance to everyone else. It has become a leading expert on which insurance carrier best suits a particular industry. Understanding what the industry calls a carrier’s appetite―the desire to underwrite a particular type of business―CommercialInsurance.net can get the best pricing for even high-risk industries that typically have a hard time finding reasonable insurance policies.
How We Evaluated the Best LLC Companies
There are hundreds of commercial insurance carriers to choose from, so we focused on:
- Financial stability: We first considered carriers with excellent or better AM Best ratings and brokers who work with top-tiered insurers
- Appetite and available policies: Knowing what industries and insurance types a company specializes in helped us identify options for many situations. However, we decided it was important to find carriers that, while specializing in one thing, offered the full array of commercial insurance lines for an LLC’s convenience in shopping.
- Application process: We looked for carriers and brokers who make the application process simple and intuitive.
- Costs: Insurers rarely share premium information, in part because insurance pricing is highly individualized. However, some do list averages and minimum premiums on their sites, and others include information about discounts.
Bottom Line
Just having an LLC doesn’t tell you the type of insurance you’ll need. You need to provide the insurance carrier with the type of work you do, your overall exposure, and the total value of business property to get the right quote. The best LLC insurance companies guide you through the process with an understanding that you aren’t an insurance expert and are relying on their knowledge to help protect your business.
