⏰ Estimated read time: 13 minutes
Business insurance helps protect your company and its assets when you face property damage, injuries, lawsuits or other claims that might arise from your work.
The best business insurance companies make getting coverage easy and offer a smooth claims experience so you can get back to running your business. To determine the top insurers that do this, NerdWallet evaluated their financial strength, complaint records, digital features and customer service channels.
Here are our picks for the best small-business insurance. Choose an option to learn more about that provider — or keep reading to learn more about business insurance and what it covers.
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Best business insurance providers:
Best business owner’s policy: Chubb
Pros:
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Received fewer commercial property insurance complaints to state regulators than expected for a company of its size.
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Simple online shopping experience.
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BOP includes business interruption and extra expense coverage.
Cons:
Best online business insurance: Next
Pros:
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Received fewer commercial property and commercial auto insurance complaints to state regulators than expected for a company of its size.
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Up to 10% discount if you buy more than one policy.
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Provides a digital certificate of insurance that you can share with anyone who needs it.
Cons:
Best for commercial auto insurance: Progressive
Pros:
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Fewer than expected commercial auto insurance complaints filed with state regulators between 2018 and 2021 based on its market share — which is the largest by a wide margin, according to the Insurance Information Institute .
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Specialized insurance products for truckers, including owner-operators, motor carriers and driver carriers.
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Commercial auto insurance includes roadside assistance, including the cost of towing.
Cons:
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Progressive refers shoppers to other companies for additional types of business insurance. If you have to file a claim, you’ll work with those companies, not Progressive.
Best for short-term coverage: Thimble
Pros:
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Policies available one job, month or year at a time.
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If you’re a contractor or you manage contractors, you can use Thimble’s Certificate Manager tool to ensure that everyone has compliant coverage.
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Thimble’s unique “event insurance” policies include liquor liability and general liability coverage.
Cons:
Best for professional liability insurance: Hiscox
Pros:
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You can get a quote and purchase a professional liability insurance policy online.
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E&O insurance covers work done overseas.
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Hiscox can connect shoppers to medical malpractice insurance through a third-party partner.
Cons:
Best for working with an agent: Travelers
Pros:
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Offers virtually every type of commercial insurance, including specialized coverage like key person insurance and surety bonds.
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Received fewer commercial property insurance complaints and far fewer commercial auto insurance complaints to state regulators than expected for a company of its size.
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You can access your certificate of insurance and track your claims through an online portal.
Cons:
Best for additional business services: Nationwide
Pros:
Cons:
Other business insurance companies
The right insurance for your business will depend on your industry, company size and location, among other factors. The following insurers didn’t make our list of top choices, but their unique offerings may make them a good fit for you.
Want to compare quotes from multiple insurance companies at once? Consider using an online broker, like these:
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Tivly works with over 200 insurance providers, matching you to the one who fits your needs!
What kinds of business insurance are there?
BOPs are fairly standardized, but you may be able to add certain endorsements. For instance, The Hartford offers data breach coverage as an add-on, and State Farm will allow you to add professional liability coverage to a BOP.
A BOP may provide enough coverage for some small businesses that don’t have employees.
What is a business owner’s policy?
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General liability insurance.
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Commercial property insurance.
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Business income insurance is usually but not always included.
A BOP is a good choice for small businesses that rent space, use valuable tools or stock inventory. If you don’t have employees, it may provide all the coverage you need.
Look for a business owner’s policy that includes business interruption insurance. Review the optional endorsements your provider offers, too — for instance, The Hartford offers data breach coverage as an add-on, and State Farm will allow you to add professional liability coverage to a BOP.
What business insurance coverage do you need?
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Find out what coverage is required by law. Some business insurance, like workers’ compensation, is required by law. Check the workers’ compensation regulations in your state to make sure you’re in compliance. Be on the lookout for industry-specific regulations as well; for example, state law might require lawyers to carry legal malpractice insurance.
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Find out if your contracts require insurance. Landlords, lenders and contractors may require certain types of coverage before doing business with you.
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Talk to a professional. If you’re unsure about what kinds of business insurance you need, a licensed commercial insurance agent near you can help you evaluate your risks.
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Get an online quote. Lots of online business insurance providers ask questions during the quote process and suggest certain kinds of coverage as a result. For instance, if you say your business works in a professional services industry, they might recommend professional liability insurance. Getting a quote can highlight certain risks and help you understand how much insurance might cost.
How much does business insurance cost?
The best way to find affordable business insurance is to get quotes from several different providers and choose the best option for you.
Reassess your business insurance needs regularly
As your small business hires employees, adds locations or grows its product line, your insurance needs will grow too. Check on your insurance policies every year to make sure they still provide the best coverage for you.
What’s the best fit for your business?
Answer a few questions and we’ll match you with an insurance partner who can help you secure quotes.
Frequently Asked Questions
Small-business insurance is coverage that limits your company’s financial losses in case of property damage, injuries, lawsuits or other claims your business might face.
If your business has employees, performs services for a fee, has an office or storefront, or sells products, you need business insurance. What policies you need and how large those policies should be will vary depending on what your business does, how many people you employ and lots of other factors.
Business insurance can cover financial losses due to property damage, lawsuits, injuries to customers or employees, work stoppages and many other events. Different types of policies protect against different kinds of risks. Most businesses need several types of coverage.
The cost of business insurance depends on what your company does, where you’re located, how many employees you have and how much space you occupy, among other factors. Get quotes from several different insurance providers to find the best price.
Most business insurance policies spell out specific exclusions, which are events that they won’t cover. Read your policies closely to understand what’s covered and what isn’t. Business insurance doesn’t cover losses beyond the policy’s limit, which is the maximum amount your insurance company will pay out in a certain period of time.
You need small-business insurance if a state law, a lease, a business loan application or another type of business agreement requires you to have it. Workers’ compensation insurance and commercial auto insurance are often required by law. Check your state’s regulations and read all of your agreements closely to find out what coverage you need.
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