Best Small Business Insurance
Choosing the right insurance is crucial for protecting your small business. This guide provides an overview of the best small business insurance companies, helping you make informed decisions about your coverage.
Key Takeaways:
- Allianz and Clear Blue are top-rated small business insurance companies.
- The average cost of a Business Owners Policy (BOP) is around $57 per month.
- BOPs can be customized with additional coverages like workers’ compensation and commercial auto insurance to address industry-specific risks.
Our Top Picks
Forbes Advisor’s analysis of 28 insurance providers identified the following as leading options for small businesses:
- Allianz
- Clear Blue Insurance Co.
- Farmers Insurance
- Acuity
- CNA
- Travelers
- Frankenmuth Insurance
- Cincinnati Insurance
- Westfield Insurance
- Chubb
Best Small Business Insurance Companies
Allianz: Allianz is recognized for its financial strength and is suitable for small businesses. While they are known for insuring large enterprises, smaller businesses can use their insurance industry expertise. They lack online quote options.
Clear Blue Insurance: They offer all essential coverages like general liability and commercial property insurance. They specialize in providing insurance through partnerships. Clear Blue does not sell directly to small businesses. You’ll need to go through one of Clear Blue’s partner agencies, and they don’t offer online quotes.
Farmers Insurance: Farmers provides commercial coverage types and assistance from agents. They offer workplace safety materials and online quote options with the ability to submit claims online. They do not sell in all states.
CNA: CNA has a strong complaint track record, and offers over 300 coverage types. Industries covered include construction, health care, financial institutions and law firms, offering a pay-as-you-go workers’ compensation insurance option. They are solid, though they have a slightly lower financial strength rating vs. top competitors, but they offer online quoting and claims.
Travelers: Travelers is a large commercial insurance provider, with few complaints about its business insurance. A wide range of commercial insurance solutions is available through independent agents. They offer a pay-as-you-go workers compensation system, but do not offer online business insurance quotes.
What Are the Different Types of Small Business Insurance?
Choosing the right coverage depends on your business’s type, size, and specific risks. Common types include:
- General Liability Insurance: Covers claims for property damage and bodily injuries to others. This includes coverage for reputation damage, and legal costs. It’s a good starting point for most businesses.
- Commercial Property Insurance: Protects physical business property from damage, such as fire or theft. This includes computers, desks, and business inventory.
- Workers’ Compensation Insurance: Covers employees’ medical expenses and lost wages if they become ill or injured because of their job. Required in most states if you have employees.
- Commercial Auto Insurance: Covers vehicles used for business purposes.
How to Buy Small Business Insurance
- Gather Documents: Compile information about your assets, employees, payroll, equipment, location, and building age.
- Contact an Agent: An independent agent can help you determine coverage needs.
- Compare Quotes: Get quotes from multiple insurers to find the best price.
How Much Small Business Insurance Coverage Do I Need?
- Business Type: Certain industries have specific associated risks, which determine the necessary coverage.
- Business Size: Coverage limits may need to increase as your business grows.
- Location: Local or state laws may require specific coverage.
- Contractual Requirements: Clients may require certain coverage types, such as general liability or surety bonds.
How Much Does Small Business Insurance Cost?
The average cost of a BOP is $57 per month, according to Insureon.
- Industry: Higher-risk industries typically pay more.
- Payroll and Revenue: Higher operating costs may lead to higher liability insurance costs.
- Number of Employees: More employees increase the risk of accidents.
- Location: High-risk areas may have higher premiums.
- Building Age and Size: Older and larger buildings can be more expensive to insure.
- Coverage Amount and Types: Higher coverage limits and the types of policies bought impact costs.
- Claims History: A history of claims could increase premiums.
Frequently Asked Questions (FAQs)
- Do I need small business insurance? Yes, the vast majority of small businesses need insurance to protect against lawsuits and financial losses.
- What does small business insurance not cover? Exclusions typically include floods, earthquakes, and intentional acts.
- Do I need business insurance if I have an LLC? Yes, business insurance covers your LLC’s assets.
- Do remote businesses need insurance? Yes, to cover risks associated with lawsuits, accidents, and stolen property.
- How to save money on small business insurance? A BOP can be a good way to save money by bundling coverage. Compare quotes from many insurers.
