7 Best Small Business Insurance Companies 2023
The best small business insurance providers offer multiple policies with tailored coverage and robust customer service, such as 24/7 claims availability and instant access to a certificate of insurance (COI). Managing your policy and getting answers to your questions are easy with a great provider. We evaluated 19 providers on financial stability, policies offered, customer satisfaction, and convenience. Here are the seven best:
- The Hartford: Best overall insurance for small business
- Progressive: Best for companies with autos and trucks
- Chubb: Best for business owner’s policy (BOP)
- Next: Best for general contractors
- Nationwide: Best for businesses in the service industry
- Travelers: Best for retail businesses
- Hiscox: Best for home-based businesses
Best Small Business Insurance Companies Compared
Best For | Quote Process | Accessibility | Instant COI | Financial Rating | |
---|---|---|---|---|---|
Overall | Online | 24/7 call center | ✓ | A+ (Superior) | |
Companies with autos and trucks | Online | 24/7 call center | ✓ | A+ (Superior) | |
BOP | Online | 24/7 call center | ✕ | A++ (Superior) | |
General contractors | Online | Monday to Friday, 6 a.m. to 5 p.m. Pacific time | ✓ | A++ (Superior) | |
Service industries | Online | 24/7 call center | ✕ | A- (Excellent) | |
Retail shops | Contact Travelers or local agent | 24/7 call center | ✓ | A+ (Superior) | |
Home-based businesses | Online | Monday to Friday, 7 a.m. to 10 p.m. Eastern time | ✓ | A (Excellent) | |
Which Small Business Insurance Company Is Right for You?
Which Small Business Insurance Company is Right for you?
Answer a few simple questions to receive a customized suggestion for the best small business insurance for your company.
The Hartford: Best Overall Small Business Insurance Provider
What We Like
- In-house claims services
- Customer complaints below national average
- Over 1 million small businesses insured
What's Missing
- May need to finish quoting process with an agent
- Same-day coverage not always available
Deciding Factors
- Experienced provider: Years of experience writing specialty lines
- Financial strength: Excellent financial rating
- Quick application: Get a quote easily and quickly
- Multiple coverages: Available depending upon the project
The Hartford, with a rating of 4.75 out of 5 in our evaluation, is our top choice for the best insurance for small businesses. It also scored higher than any other provider because of its financial strength, customer satisfaction, and available policies. It insures nearly every small business profession—whether you have a barber shop, construction company, auto repair shop, or lawn care business, it has the coverage for your business needs.
The only areas in our evaluation where The Hartford fails to shine are by not providing an app where business policyholders can manage their policy and claims, and sometimes, you cannot complete the quote online and have to call to finish it. For more information, you can read our in-depth review of The Hartford.
Cost & Coverage
We received a quote for a BOP for a clothing retail shop that costs $1,150 annually. It included $25,000 in business property with a $1,000 deductible, and on the liability side, it carried $1 million per occurrence and $2 million aggregate. It included business income, backup sewers and drains, and coverage for brands and labels.
One standout feature of The Hartford is that when you’re receiving a quote, it gives you four options to choose from: good, better, best, and a build your own. The first three options are already set and show you what coverages are included, whereas the last one is a free form where you can select what fits your business.
Its standard BOP provides general liability and business income loss. It’s also customizable with additional coverage, such as data breach or professional liability insurance. The Hartford also has a wide range of other coverages, including workers’ compensation and commercial auto.
Customer Satisfaction & Convenience
With more than 1 million small business owners insured through The Hartford, it has lower than average complaints with the National Association of Insurance Commissioners (NAIC). It also provides state-specific resources and coverage for your small business needs—pick your state and learn about any laws and tailored coverage for your region. For example, if you’re in Kentucky, you need workers’ compensation.
You can go online and get a quote, purchase a policy, manage it, and file a claim. Customer service is available 24/7.
Financial Stability
With more than 200 years of experience, The Hartford has maintained great financial stability. It is rated A+ (Superior) by AM Best.
Progressive: Best for Companies With Autos & Trucks
What We Like
- Policy options
- Available in 49 states
- Online quotes
What's Missing
- Doesn’t always provide additional coverages like a BOP or general liability
- No app for commercial lines
Deciding Factors
- Appetite: For autos, vans, trucks, semis, and food trucks
- In-house claims: Claims handled directly by Progressive
- Quick application: Get a quote easy and quickly
- Roadside services: Including towing and certified shops for all types of vehicles
Progressive Commercial scored 4.5 out of 5 in our system because of its financial position. As the top insurer of commercial autos by market share in the United States, it’s the natural choice for the best commercial auto insurance provider. It insures more than 1 million commercial autos: vans, light trucks, dump trucks, food trucks, ice cream trucks, and even tractor-trailers. It took a slight hit in our customer satisfaction criterion because its complaint levels are average, and while it has an app for personal lines, it doesn’t have one for commercial lines.
Cost & Coverage
We received a quote for a Ford F59 that costs $2,054 annually. You can save $217 by paying in full, which costs $1,837. The quote didn’t carry first-party coverages like collision and comprehensive, which was a choice, but it carried liability of $250,000 per person, $500,000 aggregate, and $100,000 for property damage.
For the quote, we could add general liability and commercial property if we wanted additional coverage.
According to Progressive, its customers’ average price for a BOP is $68 a month. The BOP covers liability, property damage, and loss of income. In addition to commercial vehicles, it offers lots of coverage, such as general liability, commercial property, and liquor liability. If you occasionally drive for Uber or Lyft, you can take advantage of Progressive’s rideshare insurance.
Customer Satisfaction & Convenience
If you file a claim, Progressive has in-house heavy truck specialists who handle the damages to your dump truck or semi.
It offers roadside service to its policyholders with an extensive truck repair network, and policyholders have priority status for the work. Once repaired, you or your representative may do a quality inspection before the vehicle leaves the shop.
Financial Stability
Progressive has more than 40 years of experience in commercial auto insurance, which is reflected in its rating of A+ (Superior) by AM Best.
Chubb: Best for BOP
What We Like
- Financial strength
- Customer policies
- 24/7 call center
What's Missing
- Unclear process for COI
- No app for commercial lines
- May need to finish quoting process with an agent
Deciding Factors
- In-house claims: Claims handled directly by Chubb
- Independent agents: Available to help you with your policy
- Online client portal: Log in to manage your payments
- Experienced provider: Years of experience writing insurance
Chubb, which scored 4.25 out of 5 in our evaluation because of its strong financial position and low complaints, is the best provider for a commercial business owner’s policy. Its standard BOP has the core policies your business wants, but it offers a custom BOP that can be tailored to fit your business by choosing from a large number of endorsements. For small business owners, it’s difficult to find information on policy management services, including getting an instant COI.
Cost & Coverage
We received a quote of $924 annually or $77 monthly for a BOP for a clothing store. It had general liability limits of $1 million per occurrence and $2 million aggregate. It also had $2 million in products and completed liability and $50,000 in business personal property. Some option endorsements included water backup and sump overflow, data breach coverage, and employment practices liability insurance (EPLI).
The BOP by Chubb is available for small businesses with revenue of up to $30 million and is available for more than 1,000 business classes in multiple industries, including foodservice, healthcare, real estate, and retail stores.
If the standard BOP doesn’t work for your business, it has Customarq. This is a specialized policy and is designed to meet the new challenges that businesses typically face. It carries a minimum blanket coverage of $500,000 for your property with the option to increase the amount. As marketing moves to mediums like Facebook and TikTok, claims for advertising injury, libel, and invasion of privacy offenses increase.
Customer Satisfaction & Convenience
Chubb maintains high customer service and has lower-than-average complaints. It strongly emphasizes claims services, intending to resolve claims within 48 hours. You can file the claim online or call its 24/7 call center for claims.
For some businesses, you can get a quote and purchase it online. It is usually not for same-day coverage. Often, when you are trying to get a quote, Chubb will halt the process and request that you call to finish the process.
Financial Stability
With roots stretching to the 1880s, Chubb has maintained a global reputation for financial stability. AM Best has rated it A++ (Superior).
Next: Best for General Contractors
What We Like
- Same-day coverage
- Quick, online quote
- Instant access to policy
What's Missing
- No 24/7 call center
- Not all construction activities are covered
Deciding Factors
- Online portal: Access to policy documents instantly
- App: Manage your policy and claims easily
- Instant COI: Unlimited and shareable immediately
- Multiple coverages: Available depending upon the project
Next Insurance received a 4 out of 5 in our rubric because of its high customer service reviews, lightning-fast convenience, and policies offered. Its target is new and small existing businesses with a revenue of up to $5 million and fewer than 10 employees. It prefers to work directly with ground-up and new construction for general contractors. For your business, it’s able to offer general and professional liability, inland marine, commercial property, and workers’ compensation.
Cost & Coverage
Next usually will provide you with three quotes for different levels of coverage. These options are basic, premier, and deluxe. It will offer a recommendation for your business, but you have the freedom to choose which one you think is right.
For a general contractor, we received three quotes. The basic coverage costs $274.34 monthly and was a combination of general liability and professional liability. The general liability carried an aggregate limit of $2 million, and the professional liability carried an aggregate limit of $50,000. Meanwhile, the premier coverage cost $382.26 monthly and carried the same liability limits, but also had $15,000 in coverage for damaged or stolen tools.
Finally, the recommended deluxe coverage cost $462.51 monthly and carried the same coverage as the previous two, but the tool coverage was increased to $20,000, and it had $36,000 for office space and equipment. It also had other coverages like equipment breakdown, debris removal, and employee dishonesty.
Customer Satisfaction & Convenience
Next is a direct-to-consumer insurance company, meaning it will work directly with it and doesn’t need an agent or broker. Its website and app interface reflects this convenience, giving you the ability to manage your policy, change coverage, and create certificates of insurance all on the website or its app.
Unfortunately, Next does not operate a 24/7 line for customer service or claims. Its app does function like one with its many options. But if you need to speak directly with someone, you’ll need to call Monday through Friday from 6 a.m. to 5 p.m. PT.
Customers are responding well to this convenience as it has lower-than-average complaints with the NAIC. More than 4,000 users have given it 5 out of 5 on its website, with the most frequent comment celebrating how fast and easy it is to use.
Financial Stability
Next is in a strong financial position with an A- (Excellent) rating from AM Best.
Nationwide: Best for Service Industry Businesses
What We Like
- Strong financial rating
- Available 24/7
- Convenient quoting process
What's Missing
- Need to speak to an agent to finalize and bind a policy
Deciding Factors
- Experienced provider: Years of experience writing insurance
- Customer satisfaction: Average complaints are below the national average
- Independent agents: Available to help you with your policy
- Online services: Log in to manage your policy and payments
In our evaluation, Nationwide scored 4 out of 5 because of its available policy options and the numerous resources and services it provides to the customer. It has developed an extensive suite of management liability policies, which are available as primary or excess through Nationwide’s specialty line.
These include specific coverages for businesses in the service industry, like printing error coverage for advertising firms, a risk-management hotline for law firms, or professional liability customized for funeral home directors. Depending upon the line of business and coverage you’re seeking, you may be able to get a fast quote online, but odds are it’ll direct you to schedule a meeting with an agent.
Cost & Coverage
We received a quote for a beauty salon that costs $503 annually—there was no monthly option. The policy is a BOP with $1 million per occurrence and $2 million aggregate in general liability and $25,000 in business property. There’s an option to purchase the policy entirely online without speaking to anyone, and the coverage starts the next day.
For service professions, Nationwide’s target industries are barber shops and beauty salons, photographers, funeral homes, pet groomers, jewelry, watch, and shoe repair. It carried a total insurable value of $20 million with a maximum building value of $10 million. Business revenue is capped at $5 million.
Spas offering electrolysis, permanent makeup risks, tanning, acupuncture, and other similar services are not eligible.
It offers policy packages for cyber insurance, director and officers, employment practice liability, fiduciary, and specialty crime. These are available for both private and nonprofit companies.
Customer Satisfaction & Convenience
You can manage your policy and file a claim online or call 24/7 for customer service or claim-related needs.
Formerly a private company, E-Risk Services, LLC® was purchased by Nationwide to enhance its services for management liability. It has reviewed over 15,000 companies, partnerships, and limited liability companies (LLCs) and can draw upon that data when evaluating any potential risks your business may face.
Nationwide works with independent and captive agents, so if you prefer working closely with a local agent, you can find one in your area using Nationwide’s website. These local specialists will be able to help you with your coverage and policy.
Unfortunately, if you need a COI, you’ll need to reach out to the agent handling your policy. Then, they’ll fill out the paperwork on your behalf, and it could take several days to receive one.
Financial Stability
At nearly 100 years old and with over 500,000 small businesses insured, Nationwide has the financial strength you would expect, with an A+ (Superior) rating by AM Best.
Travelers: Best for Retail Businesses
What We Like
- Customer service
- In-house claims
- 24/7 availability
What's Missing
- No online quotes
Deciding Factors
- Customer advocacy: Hotline for policyholders with concerns
- Independent agents: Available to help you with your policy
- Online services: Log in to manage your payments
- Additional resources: These help with your workers’ compensation claims
Travelers scored 4 out of 5 due to the policies it offers, its excellent scores in customer satisfaction, and its emphasis on the client through a customer advocacy department. It has a retail store BOP targeting appliance and art supply stores, auto parts, clothing and accessories, and furniture. The BOP includes property, liability, business income, extra expense and computer equipment, data, media coverage, and employee dishonesty.
While many insurers are moving toward providing an online quote, Travelers directs all inquiries for quotes to an agent. While you can get a good idea of what the product and services it offers are, you don’t know what the cost will be.
Cost & Coverage
For a quote, you will need to contact one of its independent agents.
It offers endorsements for the BOP through its Power Pac and Power Pac Premier endorsements. Each one includes higher limits and coverage for accounts receivable, business personal property, utility services, spoilage coverage for perishable goods, and even salesperson’s samples.
Customer Satisfaction & Convenience
Travelers is available in all 50 states and while you cannot get a quote online, you can manage your policy and pay your bills online. You can also request an instant COI through your account.
Claims and customer service are available 24/7. There’s a customer advocacy department in case something goes wrong, although you likely won’t need to use the customer advocate as
Travelers has the lowest average complaint of any provider in this guide.
Financial Stability
Founded in 1853 and operating globally, Travelers’ financial position is strong with an A++ (Superior) from AM Best.
Hiscox: Best for Home-based Businesses
What We Like
- Same-day coverage
- Quick, online quote
- Instant access to policy
What's Missing
- No app for commercial lines
- No 24/7 customer service
- For higher limits, you have to call
Deciding Factors
- Discount: Available for home-based businesses
- Online portal: Access to policy documents instantly
- COI: Available online instantly
- Financial strength: Makes it possible to pay your claims
Hiscox is a small business insurer that excels in offering fast insurance to small businesses online. Typically, if your business has revenues under $300,000 and five or fewer employees, you can get same-day coverage online in just minutes. It also offers discounts of up to 5% for home-based businesses. For small, home-based businesses, Hiscox offers appropriate limits, the convenience of managing your policy online, and a dedicated in-house claims team.
Cost & Coverage
We received a quote for a home-based artist for cyber insurance that costs $259 annually. Alternatively, you can make a down payment of $43.30 and then ten installments of $21.57. The policy carried an occurrence and aggregate limit of $250,000 with a $10,000 deductible.
As a cyber liability policy, this insurance covers breach response with experts to respond to and mitigate a cyber event. It also covers lost business revenue and data recovery if you suffer a breach or extortion threat. Another coverage featured is for money lost if your business is a victim of fraudulent instruction by a third party.
Customer Satisfaction & Convenience
Hiscox is available in all 50 states, and for most coverages, you can get an online quote quickly for same-day coverage. You can also purchase the policy without needing to speak with anyone. However, if you want or need higher limits, you’ll need to call and speak with one of its licensed agents. They are available Monday through Friday from 7 a.m. to 10 p.m. ET.
Once you have an account with Hiscox, then you can manage your policy, create an instant COI and file a claim.
Hiscox has higher-than-expected complaints as monitored by the NAIC. However, on the independent review site feefo, it has 4.7 out of 5 from more than 1,000 verified customers. “Very easy to use” is a common refrain when you read through user reviews.
Financial Stability
Hiscox is a global insurer that has been around since 1901. It has the financial reserves to pay claims with a rating of A (Excellent) from AM Best.
Methodology: How We Evaluated
We determined which insurance companies would be the best with our in-house proprietary evaluation system. We reviewed 19 leading insurance providers and presented the seven with the highest scores. In evaluating them, we focused on the customer’s needs. We paid particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder for a specific provider.
Frequently Asked Questions (FAQs)
What is small business insurance?
Small business insurance protects your business from property damage, business interruption, and third-party liability claims. For example, you could file a claim if you cannot operate your convenience store and the food spoils because of a storm-related power outage. If someone were to slip and fall in your store, your liability insurance would help pay for their medical bills and protect your business from lawsuits.
Do I need small business insurance?
Probably. Depending upon the industry and state, it may be required. Often, vendors you work with will require you to carry liability insurance. If you have a loan for your business, the bank may require insurance as a condition of the loan. In most states, workers’ compensation is required coverage.
What types of coverage are available?
There are many different policies, but the most common are BOP, general liability, and workers’ compensation. The BOP is a policy package that usually includes property, liability, and business income. Workers’ compensation helps you and your employees, should one be injured while working. Some other types of coverage are commercial auto and cyber liability.
Bottom Line
Time is money—so we’ve saved you some time by researching the best small business insurance providers. The Hartford makes finding an affordable and comprehensive policy easy, as its experts can help you select the right coverage for your needs. Complete a short online questionnaire and receive a quote in minutes or call (888) 219-3051.