The best insurance for small businesses has multiple types of policies with tailored coverage and outstanding customer service, like 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 insurance company and, with that in mind, we evaluated 19 different small business insurance companies to determine the top picks.
We narrowed down our list to the top six companies providing the best small business insurance:
- The Hartford: Overall best insurance for small business
- Next Insurance: Best for instant coverage and unlimited free COIs
- Chubb: Best for business owner’s policy (BOP)
- Nationwide: Best for service industry businesses
- Hiscox: Best for home-based businesses
- Travelers: Best for retail businesses
Simply Business is our top pick for small business insurance brokers. Get the right coverage in minutes by comparing quotes from multiple providers. | ||
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At Fit Small Business, we are committed to delivering trustworthy answers to your insurance questions based on thorough research and first-hand experience. Drawing on over a decade of work in the insurance industry, including cases with small businesses, I evaluate each provider based on the expertise I’ve developed.
After countless interactions with customers, I have learned what matters and what doesn’t matter, as well as what works and what doesn’t work. And ultimately, I apply that knowledge and experience to each provider’s evaluation.
Best Small Business Insurance Companies Compared
Quote Process | Policy Purchase Process | Accessibility | Instant COI | Financial Rating | |
---|---|---|---|---|---|
Online | Online or over the phone | 24/7 call center | ✓ | A+ (Superior) | |
Online | Online | Monday to Friday, 6 a.m. to 5 p.m. Pacific time | ✓ | A- (Excellent) | |
Online or through an agent | Usually through an agent | 24/7 call center | ✕ | A++ (Superior) | |
Online or through an agent | Over the phone or through an agent | 24/7 call center | ✕ | A+ (Superior) | |
Online | Online or over the phone | Monday to Friday, 7 a.m. to 10 p.m. Eastern time | ✓ | A (Excellent) | |
Through an agent | Through an agent | 24/7 call center | ✓ | A++ (Superior) | |
The Hartford: Best Overall Small Business Insurance Provider
Pros
- In-house claims services
- Customer complaints below the national average
- Over 1 million small businesses insured
Cons
- May need to finish the quoting process with an agent
- Same-day coverage not always available
- No mobile application for commercial policies
Standout Features
- Years of experience writing specialty lines
- Excellent financial rating
- Get a quote easily and quickly
- Whatever coverage needed is available
Financial stability: With more than 200 years of experience, The Hartford has maintained great financial stability. AM Best rated The Hartford A+ (Superior).
The Hartford is our top choice overall for business insurance. It scored higher than any other company in this guide due to its financial strength, customer satisfaction, and available policies. It is also our top option for general liability insurance.
It stands out because it offers the convenience of an insurance technology (insurtech) company, providing quick, customizable quotes online and the ability to generate an instant COI, and also has a wide range of coverage that any business would need. It insures nearly every small business profession—whether you have a barber shop, construction company, auto repair shop, or lawn care business.
Unfortunately, The Hartford did fall short in parts of our evaluation. The carrier does not have a mobile app where business policyholders can manage their policy and claims. Additionally, sometimes you cannot get a quote online—or if you do get a quote, you may have to call to purchase the policy. Finally, same-day coverage is rarely available.
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 in terms of liability, 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 of The Hartford’s standout features is the set of four options it provides when you receive a quote: “good,” “better,” “best,” and “build your own.” The first three options are preset and show you what coverages are included, whereas with the last option you can select which coverage best fits your business.
Its standard BOP provides general liability and business income loss. It is also customizable with additional coverage, like data breach or professional liability insurance. Finally, The Hartford has a wide range of other coverages, including workers’ compensation and commercial auto.
With over 1 million small business owners insured through The Hartford, it has received a lower-than-average number of complaints with the National Association of Insurance Commissioners (NAIC). This information is supported by policyholder reviews on its website[1], where you can see reviews for all of the lines of business it sells. For example, there are nearly 4,000 reviews for workers’ compensation, with an average of 4.8 out of 5 stars.
The Hartford offers numerous resources for small businesses to help them succeed. Many of the resources are segmented by state, including specific information on coverage that may be required or any state laws that may impact your business and insurance. For example, if you are in Kentucky, you need workers’ compensation.
Even though it doesn’t have an app, it does have 24/7 customer service. Its digital experience is definitely more streamlined and advanced than many of the other providers. Online, you can get a quote, purchase a policy, manage the policy, and file a claim. If you need proof of insurance, you can create a digital certificate of insurance.
Next Insurance: Best for Instant Coverage & Unlimited Free COIs
Pros
- Same-day coverage
- Quick online quote
- Instant access to policy
Cons
- No 24/7 call center
- Not all construction activities are covered
- Doesn’t directly sell commercial auto insurance
Standout Features
- Access to policy documents instantly
- Manage your policy and claims via the app
- Unlimited free and shareable COIs
- Coverage customized for each industry
Financial stability: Next Insurance is in a strong financial position. AM Best’s Next Insurance rating is A- (Excellent).
Next Insurance has a fast quoting system that makes it easy to get instant coverage entirely online without speaking to anyone. Through its app and new COI Analyzer, it can generate a nearly instant and free COI you can share. This is especially helpful for industries that may need to regularly produce proof of insurance, such as for a construction bid or to add additional insureds and show proof of the change. Because of its lightning-fast convenience and the range of policies offered, it is a great provider of fast coverage.
Next is also a great option for affordable general liability insurance.
Its target businesses have fewer than 10 employees and revenue of up to $5 million. It can offer general and professional liability, inland marine, commercial property, employment practices liability insurance (EPLI), and workers’ compensation.
Because it is a newer carrier, Next Insurance is still building its coverage offerings. Some insurance, like commercial auto, are offered in conjunction with another partner, and in some states coverage may not yet be available. A carrier like Chubb, Nationwide, or The Hartford may be better if your business needs a host of coverage and you would like all your policies in one place.
Next Insurance usually will provide you with three quotes for different levels of coverage. These options are basic, premier, and deluxe. It will offer a coverage 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 was quoted at $274.34 monthly and was a combination of general liability insurance and professional liability insurance. The general liability carried an aggregate limit of $2 million, and the professional liability carried an aggregate limit of $50,000.
- The premier coverage was quoted at $382.26 monthly and carried the same liability limits but also had $15,000 in coverage for damaged or stolen tools.
- The recommended deluxe coverage was quoted at $462.51 monthly and carried the same coverage as the previous two—but the tool coverage was increased to $20,000, and it included $36,000 for office space and equipment. It also had other coverages like equipment breakdown, debris removal, and employee dishonesty.
Next Insurance is one of the best insurance companies for contractors because it has created custom policies for the industry that have layers of coverage automatically included. For example, tools and equipment are automatically included in general liability. Next Insurance also emphasizes extremely fast (sometimes within seconds) COI generation specifically, but not exclusively, for contractors.
Next Insurance is a direct-to-consumer insurance company, meaning it will work directly with each customer without needing an agent or broker. Its website and app interface reflect this convenience, giving you the ability to manage your policy, change coverage, and create COIs all on the website or app.
Unfortunately, it does not operate a 24/7 line for customer service or claims; however, its app does function like one with its many options. But if you need to speak directly with someone, you will need to call Monday through Friday from 6 a.m. to 5 p.m. Pacific time. We docked a few points in our scoring rubric for these reasons.
Customers are responding well to Next Insurance’s convenience, as it has lower-than-average complaints with the NAIC. More than 4,000 users have given it a 5 out of 5 rating on its website[2], with the most frequent comment celebrating how fast and easy it is to use.
Chubb: Best for BOP
Pros
- Financial strength
- Policies available
- 24/7 call center
Cons
- Unclear process for COI
- No app for commercial lines
- May need to finish the quoting process with an agent
Standout Features
- Claims handled directly by Chubb
- Chubb works with independent agents who can help you with your policy
- Log in to manage your policy and payments
- Years of experience writing insurance
Financial stability: With roots stretching to the 1880s, Chubb has maintained a global reputation for financial stability. AM Best rated Chubb A++ (Superior).
Chubb is an experienced global insurer with a strong financial position and a low number of complaints. It is the best provider for a commercial BOP, which is available for small businesses with revenue of up to $30 million and for more than 1,000 business classes in multiple industries, including food services, healthcare, real estate, and retail stores. It is also one of the best providers for professional liability insurance.
Its standard BOP has the core policies your business wants. However, it offers a custom BOP that can be tailored to fit your business by choosing from a large number of endorsements.
Unfortunately, for smaller businesses, less information is available regarding the extent to which you can manage your account online or how to get a COI. While it received the same score as Next Insurance, Next was placed above Chubb due to its convenience, specifically the ability to create instant coverage online without needing to speak to anyone. To purchase a policy with Chubb, you will usually need to call to finish the process.
We received a quote of $924 annually or $77 monthly for a business owner’s policy 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 insurance and $50,000 in business personal property insurance. Some option endorsements included water backup and sump overflow, data breach coverage, and EPLI.
If the standard BOP doesn’t work for your business, Chubb offers Customarq, a specialized policy designed to meet the new challenges that businesses typically face. As marketing continues to move to mediums like Facebook and TikTok, claims for advertising injury, libel, and invasion of privacy offenses increase. Customarq carries a minimum blanket coverage of $500,000 for your property with the option to increase the amount.
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, though it is usually not for same-day coverage. Often, when you are trying to get a quote, Chubb will halt the process and request you call to finish it up.
Nationwide: Best for Service Industry Businesses
Pros
- Strong financial rating
- Available 24/7
- Convenient quoting process
Cons
- Need to speak to an agent to finalize and bind a policy
- Unclear process for obtaining a COI
- Limited information on online account services
Standout Features
- Small business and agribusiness coverage available nationwide
- Average complaints are well below the national average
- Tailored coverage for service industries
- Risk management services are available to make your business safer
Financial stability: At nearly 100 years old and with more than 500,000 small businesses insured, Nationwide has the financial strength you would expect. Nationwide’s AM Best rating is an A+ (Superior).
Nationwide Insurance scored high in our evaluation because of its exceptional customer satisfaction with zero complaints filed with state departments of the Department of Insurance (DOI). It has developed an extensive suite of policies for the service industry, including a package of management liability policies, which are available as primary or excess coverage 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, and professional liability customized for funeral home directors. Depending on the line of business and coverage you are seeking, you may be able to get a fast quote online—but odds are it will direct you to schedule a meeting with an agent.
While Nationwide stands out for its great customer service, it isn’t the most convenient provider on this list. It is hit or miss whether you will receive a quote online, and if you do, it may contain minimal information. Often, when trying to get a quote, you will need to go through the steps (which are lengthier than others) and may receive a quote from another provider instead of Nationwide.
To purchase a policy, you will need to speak with an agent. There is no clear information regarding account maintenance or how to get a COI for your business.
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 insurance, and $25,000 in business property insurance. There is 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, and jewelry, watch, and shoe repair. The quote 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 ineligible.
Nationwide also offers policy packages for cyber insurance, directors and officers, employment practices liability, fiduciary, and specialty crime. These packages are available for both private and nonprofit companies.
You can manage your Nationwide 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 LLCs and can draw on that data when evaluating 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.
Hiscox: Best for Home-based Businesses
Pros
- Same-day coverage
- Quick, online quote
- Instant access to policy
Cons
- No app for commercial lines
- No 24/7 customer service
- For higher limits, you have to call
Standout Features
- Home-based businesses priced to reflect lower risk
- Online access to policy documents instantly
- Create a COI online
- Financial strength to pay claims
Financial stability: Hiscox has a solid financial position. AM Best has rated Hiscox A (Excellent).
Hiscox is an insurer dedicated to providing coverage for small businesses. It 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 minutes.
For small, home-based businesses, Hiscox states the premiums for general liability are lower to reflect the decreased risk of a home-based business. Beyond offering quality insurance for home-based businesses, it offers the convenience of managing your policy online and a dedicated in-house claims team.
Hiscox is still relatively new on the scene for offering good business insurance. It is continuing to expand services and coverage offerings, including recently making workers’ comp available. If you are looking for a carrier that has more than the key policies most businesses need, or if having 24/7 phone-based customer service access is important to you, then you’ll want to consider a provider like Nationwide, Travelers, or The Hartford.
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 10 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 featured coverage is for money lost if your business falls victim to fraudulent instruction by a third party.
Hiscox is available in all 50 states, and for most coverages, you can get an online quote very 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 will 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, you can then manage your policy, create a COI, and file a claim.
Over the course of the past few years of evaluating Hiscox, complaints monitored by NAIC have dropped and are now lower than the national average. On the independent review site feefo[3], Hiscox has 4.7 out of 5 stars from over 1,000 verified customers. “Very easy to use” is a common refrain when you read through user reviews.
Travelers: Best for Retail Businesses
Pros
- In-house claims
- 24/7 availability
- Wide range of coverages available
Cons
- No online quotes
- No information on average prices for policies
- No mobile app for commercial customers
Standout Features
- Dedicated hotline for policyholders with concerns
- Works with independent agents to help you with your policy
- Log in to manage your policy and payments and request a COI
- More than 40 coverage enhancements available
Financial stability: Founded in 1853 and operating globally, Travelers’ financial position is strong. AM Best’s rating of Travelers is an A++ (Superior).
Travelers scored well in our evaluation 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 expenses 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. You can get a good idea of the product and services offered, but you don’t know what the cost will be, which is why Travelers took a hit in our convenience criterion.
For a quote, you will need to contact one of Travelers’ independent agents.
Travelers 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.
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 is a customer advocacy department in case something goes wrong, though you will likely not need to use the customer advocate as Travelers has the lowest-average complaint of any provider in this guide.
How We Evaluated the Best Insurance for Small Businesses
Our methodology for finding the best small business insurance companies zeros in on four key areas: customer service, financial stability (AM Best), convenience, and what insurance is available from the provider. These factors are built into our in-house proprietary evaluation system. Using that system, we determined which companies offered the best insurance for small businesses. We reviewed 19 leading insurance providers and presented the six with the highest scores.
How To Choose the Best Insurance for Small Business
Finding the best place to get business insurance is an important part of running your business. Many insurers will offer the same type of insurance and limits, so choosing a quality insurance company can make all the difference. You’ll want to first ask yourself what is most important: affordability, customer service, availability, resources, etc. From there, look for an insurer that provides the most elements that matter to you.
Often, working with a broker or an independent agent can help you maximize your time in looking for the best small business insurance company. To help you choose, read our comparison of insurance carrier vs broker.
Which Small Business Insurance Company Is Right for You?
Which Small Business Insurance Company is Right for you?
Small Business Insurance Options
There are three coverages most businesses either need or should seriously consider.
- General liability insurance is an important liability coverage because of its scope. It covers third-party damage and bodily injury and will usually include product liability, premises liability, and personal advertising injury coverage.
- Workers’ compensation insurance is required in 48 states, but the threshold (how many employees) for when it is required varies depending on the state.
- Commercial auto insurance is required if your business operates a vehicle. All states require liability insurance, and some states require uninsured motorist and personal injury protection. The limits will change for each state.
Beyond that, choosing coverage will depend on your business. For example:
- If you own an office building, then commercial property insurance will be important.
- If you are home-based but own a lot of tools, then you’ll want to consider inland marine insurance.
How Much Does Small Business Insurance Cost?
Obviously, the cost of your premium is important. While researching small business insurance costs by industry, we obtained hundreds of quotes. The averages of those quotes appear below to give you some guidance on how much you may end up paying for insurance. Keep in mind that due to the various factors that impact a quote, your price may end up being higher or lower than the averages we’ve provided.
Industry | Coverage | Estimated Monthly Cost |
---|---|---|
Consultants | Professional liability | $82–$142 |
Hair Salon | BOP | $47–$91 |
Nanny | General liability | $25–$117 |
Handyman | BOP | $42–$358 |
Accounting Services | BOP | $42–$158 |
DJ | General liability | $15–$61 |
Food Vendor | General liability | $29–$83 |
Landscaper | General liability | $75–$166 |
Frequently Asked Questions (FAQs)
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. Or, 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.
Yes, small business insurance is a smart choice for your business. While an LLC will protect your personal assets, the assets of your business are still vulnerable if you do not have insurance—plus, you can’t ignore a claim, especially if it ends up in court. You can learn more about this through our guide on LLC insurance coverage and costs.
Most likely, yes. For example, in most states, workers’ compensation is required coverage. Depending upon the industry and state, small business liability insurance 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.
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.
A COI, sometimes called a certificate of liability insurance, is a one-page document that summarizes the coverage you carry, and it can be shared as proof of insurance. Sometimes, vendors or contractors will request to be added to your policy as an additional insured. Once this change is made, you’d present the COI showing their inclusion into the policy. You can read our article on what a COI is to learn more about it and how to request one.
Bottom Line
Time is money—so we’ve saved you some time by researching the best small business insurance companies. 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.
Visit The Hartford for a quote
[1]The Hartford
[2]Next Insurance
[3]feefo | Hiscox