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- AM Best Rating: A+
- Can File Claims Online:
Pros:
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Includes equipment breakdown coverage as part of its standard business owners policy
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Provides several options for getting a quote
Cons:
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May not offer stand-alone commercial property policies
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May have to contact your agent or the company directly to make policy changes
Other insurance coverages offered include workers’ compensation, errors and omissions (E&O), employment practices liability, commercial auto, directors and officers (D&O) liability, cyber liability, and farm and ranch. Nationwide doesn’t provide medical malpractice insurance.
Contact Nationwide: Customers can begin the quote process online, search for a local independent agent, or call it directly. When it comes to policy management, policyholders can file and track claims using their online accounts or call Nationwide’s claims line. However, policyholders may have to contact their agent or call the service line directly to process any policy changes.
Availability: Nationwide’s business insurance policies are available in all 50 states and Washington, D.C.
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- AM Best Rating: A
- Can File Claims Online:
Pros:
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Can produce a certificate of insurance and request certain policy changes online
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Offers coverage for home-based businesses
Cons:
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Only offers commercial property coverage as part of its business owners policy or from a wholesale partner
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Doesn’t provide coverage in Alaska
Hiscox can provide coverage tailored for home-based businesses. However, there are no options for farm and ranch insurance.
Contact Hiscox: Depending on the nature of your request, there are several ways to contact Hiscox. To report claims, you can generally do so by calling the insurer, by contacting your agent, or by completing an online form. You can request certain types of account updates and policy changes online, such as updating the company’s address or adding a new authorized individual. For other activities, like billing updates or coverage changes, a phone call is required for processing.
If you need a certificate of insurance, you can download one on Hiscox’s website by entering your policy number and email address. Quotes can be obtained online or by calling and talking to a licensed agent.
Availability: Hiscox offers its business insurance policies in 49 states and Washington, D.C. Coverage is not provided in Alaska.
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- AM Best Rating: A++
- Can File Claims Online:
Pros:
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Extends business owners policies (BOPs) to companies with revenue of $30 million or less
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Offers a commercial package policy (CPP) for businesses needing broader coverage than a BOP
Cons:
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May have to contact an agent directly for a quote, depending on your business’s gross annual revenue
To find out what coverages are best suited for and available to your small business, reach out to Chubb directly.
Contact Chubb: Policyholders can process payments and file claims online without having to log into a Chubb account. However, when it comes to requesting a quote, your options for contacting Chubb depend on your business’s gross annual revenue. For small businesses that make less than $2 million, an online quote form and application review are available. However, for those that make more than $2 million, Chubb offers two options for quote requests: locate a local agent to connect with or fill out a basic online form for an agent to contact you.
Availability: Business insurance policies from Chubb are offered nationwide, including Washington, D.C.
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- AM Best Rating: A+
- Can File Claims Online:
Pros:
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Includes equipment breakdown coverage as part of its standard business owners policy
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Offers a home-based business endorsement
Cons:
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Doesn’t offer as many coverages as other insurers, including workers’ compensation
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Doesn’t offer online claims filing for business insurance policies
The insurer’s business owners policy (BOP) may be the only way for companies to get commercial property coverage. It combines general liability, commercial property, business interruption with extra expense, and equipment breakdown coverage. Allstate also offers various endorsements that can extend a business’s scope of coverage. This includes a home-based business endorsement that can provide off-premises and credit card coverages.
Contact Allstate: To contact Allstate, policyholders will likely have to contact their agent or call the insurer directly. This includes requests like filing a claim or updating account or policy information. Prospective policyholders can get an online quote or work with an Allstate agent.
Availability: Allstate provides small business insurance in all 50 states, plus Washington, D.C.
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- AM Best Rating: A+
- Can File Claims Online:
Pros:
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Offers coverages like home-based business insurance, global insurance, and livestock insurance
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No waiting period for business income insurance
Cons:
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Doesn’t offer business insurance policies in Alaska or Hawaii
Furthermore, The Hartford’s business income coverage has a zero-hour waiting period and will last until your business is ready to reopen its doors. Traditional business income coverage typically involves a 48- to 72- hour waiting period before coverage begins and only lasts for 30 days.
Contact The Hartford: You can request a quote online, by calling, or by emailing The Hartford. In general, policyholders can report a claim online or over the phone. Business owners can obtain certificates of insurance and other documents, track claims, and quote and request policy changes when they register for an online account.
Availability: The Hartford’s business insurance policies are available in 48 states plus Washington, D.C. Companies in Alaska and Hawaii will have to search for other options.
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- AM Best Rating: A++
- Can File Claims Online:
Pros:
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Offers a wide variety of business insurance products across multiple industries
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Offers several discounts for qualifying business owner policies
Cons:
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Doesn’t provide online quotes
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Requires you to reach out to your agent for policy management and questions
Travelers’ business owners policies (BOPs) have many discounts that can save policyholders up to 35% on premiums, according to the company website. Depending on your state, your risk level, and other eligibility factors, you may be able to add discounts for paying in full, having multiple business policies with the insurer, paying on time, and having a good insurance score.
Contact Travelers: Travelers works solely with independent agents for its business insurance policies, so there isn’t an option for getting a quote online. It also requires you to contact your agent directly to discuss any updates, policy changes, or questions you may have. To file a claim, Travelers offers various options, including filling out an online form, emailing a completed worksheet, or calling the insurer directly, depending on the type of loss and its severity. You can also file a claim directly with your agent.
Availability: Travelers works with agents across the U.S., and Washington, D.C.
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- AM Best Rating: A
- Can File Claims Online:
Pros:
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Has coverage options for industry-specific exposures
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Offers a commercial package policy (CPP) for small businesses with complex insurance needs
Cons:
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Doesn’t offer online claims filing for standard property and casualty policies
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Doesn’t provide online quotes
In addition to its business owners policy (BOP), Liberty Mutual also offers a commercial package policy (CPP) for small businesses that require broader coverage and higher limits to protect against more complex risks.
Contact Liberty Mutual: No online quotes are available. Business owners can obtain a quote from an independent agent that represents Liberty Mutual or from Tivly, a third-party partner of the insurer. Small businesses cannot file a property and casualty (P&C) claim online. They must call Liberty Mutual’s claims line directly. However, larger businesses can file P&C claims via their online accounts.
Availability: Liberty Mutual operates in all 50 states and the nation’s capital. However, it will no longer offer its business owners policy (BOP) in California as of Oct. 1, 2023.
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- AM Best Rating: A+
- Can File Claims Online:
Pros:
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Offers a wide range of coverages, including rideshare, liquor liability, garage liability, and home-based business insurance
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Provides a variety of quoting options
Cons:
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Only offers commercial property coverage as part of its business owners policy (BOP)
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Only allows online claims filing for commercial auto policies
However, commercial property coverage is not available outside of a BOP.
Contact Progressive: Businesses can obtain a quote from Progressive by calling it directly, locating an independent agent, or filling out an online application. Filing a claim, however, is a little more complicated. Progressive works with affiliated and unaffiliated insurance companies to underwrite and issue most of the business insurance policies offered. Policyholders therefore will have to check their policy documents to identify the insurance company they will need to contact to report a claim.
If your commercial auto policy is issued by Progressive directly, then you can file a claim online, but Progressive’s BOP policyholders are required to call the claims line.
Availability: Progressive’s business insurance policies are available throughout the U.S., except in Hawaii and Washington, D.C.
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- AM Best Rating: A++
- Can File Claims Online:
Pros:
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Includes equipment breakdown coverage as part of its standard business owners policy
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Can link your personal and small business insurance accounts to simultaneously manage your policies
Cons:
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Have to contact a local agent for a quote and call to file most claims
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May not have stand-alone general liability or commercial property options
It also offers professional liability, workers’ compensation, commercial auto, employment practices liability, and farm and ranch insurance. However, it doesn’t provide medical malpractice coverage.
Contact State Farm: To get a quote, business owners will need to work with a State Farm agent in their area. Most claims will have to be filed by calling the insurer, but commercial auto losses can be reported online. Customers who also have personal policies with State Farm can use one account to manage both lines of business. They can use the portal to obtain certificates of insurance, update their address, or contact their agent.
Availability: Business owners can find State Farm insurance countrywide, including in Washington, D.C.
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According to the Small Business Administration, all businesses with employees are required to have workers’ compensation insurance. So, if your small business has even one employee, you will be required to carry some sort of workers’ compensation insurance. Your state may provide exemptions and also regulate who is considered an employee for the purposes of determining workers’ compensation requirements.
Choosing the right small business insurance company can be confusing. Here are some tips to start your search:
- Determine what coverages your business needs. This includes evaluating your industry’s risks; meeting any state, lending, or licensing requirements; protecting your assets, equipment, and other items vital to operation; and looking to see if the company offers the policies you need in the state your business is located.
- Look at a company’s financial strength. By looking at a company’s financial strength, you can get an idea of how capable a company is of meeting its financial obligations in the event you need to file a claim.
- Get quotes. You’ll want to look for a company that offers the right policies, coverage limits, and price. Getting quotes from multiple insurers is a good way to research your options.
There is a wide variety of business insurance policies out there. You can find coverage for everything from general liability to kidnapping and ransom insurance. These are some of the more common types of insurance available:
Workers’ compensation insurance provides coverage in case an employee is injured or killed or falls ill on the job. If that happens, the policy will provide coverage for medical bills, disability, and lost income. The Small Business Administration (SBA) says that this coverage is required for all companies with at least one employee. In many states, workers’ comp coverage is combined with employer’s liability under one policy.
General liability insurance provides third-party coverage against things like:
- Bodily injury to nonemployees, such as customers or clients
- Property damage
- Advertising and personal injury, such as libel and slander
This policy may cover other types of risks as well, so read your policy for specific details. Learn more about general liability insurance.
Professional liability insurance, sometimes referred to as errors and omissions (E&O), is for businesses that provide professional services or advice. It provides coverage when they are negligent, make a mistake, misrepresent information, or fail to meet the standards of service and their clients suffer a financial loss as a result. Learn more about professional liability insurance.
Commercial auto insurance, also known as a business auto policy (BAP), provides insurance for the vehicles your business uses. Depending on the coverage you select, it can cover cars your business owns, rents, leases, or hires. It may or may not cover your or your employees’ personal vehicles if they are used for business purposes, so check your policy for clarification. Commercial auto policies can include coverage for auto liability and physical damage.
Commercial property insurance is sometimes referred to as business property insurance. In the event of a covered loss such as a fire, this type of insurance can help your business rebuild, repair, or replace damaged property, including the physical structure it operates out of and its equipment, tools, inventory, and other business personal property. It can cover a location you own or rent. Depending on the company, several coverage endorsements may be available, including:
You also typically choose between actual cash value and replacement cost to assess the value of covered property when a loss occurs. Learn more about commercial property insurance.
Equipment breakdown insurance can help cover sudden and unexpected mechanical breakdowns, electrical power surges, and other types of failure as outlined by the policy. However, it won’t typically cover damages from wear and tear or perils like fire, theft, or vandalism, which would be covered under your commercial property insurance. This coverage can apply to a computer in a law office or a stove in a restaurant and can repair or replace the equipment or machinery. It may also cover resulting loss of income and property damage. Learn more about equipment breakdown.
A business owner policy (BOP) is a package policy that combines liability and property coverages into one policy contract. BOPs traditionally start with:
Businesses can then add optional coverages based on their needs. Many insurance companies offer various BOP products that target certain industries, and some automatically include additional coverages, like equipment breakdown, in their standard policies.
According to the Insurance Information Institute (III), businesses that make a maximum revenue of $5 million and have 100 employees or less are often eligible for a BOP. However, some high-risk industries may have to purchase a commercial package policy (CPP) or individual policies instead. BOP eligibility can vary between insurers.
Purchasing a BOP may offer several benefits for small businesses: With only one policy to keep track of, it can be easier to manage and may be more cost effective. However, some coverages, like commercial auto and workers’ compensation, may still require separate policies.
There are many factors that can affect the cost of small business insurance. Insurance companies might have different underwriting processes to determine the risk of a business, which can make it difficult to determine an exact premium.
Here are some of the factors that go into determining the cost of small business insurance:
- Business Type: This will play a large part in how much you pay because it can determine what types of policies you are legally required to have. It will also help determine the level of risk for your insurer.
- Location: This will also play a significant role in determining the cost of insurance for your small business. States have regulations as to what types of coverage your business is required to have, and crime rates and severe weather patterns can help insurers predict the likelihood of losses.
- Number of Employees/Payroll: If you have more employees, your premiums will be higher. Payroll for certain types of policies, like workers’ compensation, can also factor into your premiums.
- Coverage Limits: Your premiums will be higher as you add on more coverage.
- Claims History: If you have had multiple claims in the past, your business might be considered a higher risk to insurers. This would result in more expensive premiums.
- This is not a comprehensive list of all factors that go into calculating business insurance premiums. Comparing quotes from multiple insurance companies with similar coverage limits and deductibles is the best way to find a policy that protects your company and fits your budget.
Depending on the type of company you own and what state you live in, Depending on the type of company you own, what state you live in, and what licenses and certifications you carry, business insurance may be required. But, states can provide exemptions and may regulate who counts as an employee for the purposes of determining whether workers’ compensation insurance is required for your business. Check with your state’s department of insurance to determine what coverage is required.
Additionally, if you are leasing a space or have a loan, your landlord or financing company may also have business insurance requirements.
This will be based on a number of factors, such as:
- Type of business you have. Some industries, like construction, come with higher associated risks than other types of businesses.
- Size of your business. Larger businesses with more employees and a larger client base will require higher amounts of coverage than smaller ones.
- Location of your business. Different states may require different levels of coverage, including requirements for professional licenses and certifications. And if you’re located in an area that faces more risks, like in a flood zone, then you may need to carry more coverage to protect against losses.
- Contractual requirements. If you lease a building, have a property loan, or work with clients through contracts, your legal agreements may require insurance coverage.
These are just a few examples of items that can affect the amount of coverage you require. For more information, check with your insurance agent, broker, or company, as they should be able to offer guidance specifically tailored for your business.
Here are some steps to take when purchasing insurance for your small business:
1. Assess your business’s risks. According to the Insurance Information Institute (III), one of the first things you’ll want to do is assess your risks. This can take the form of asking questions about how your business operates. For example:
- Do you have employees? If so, according to the Small Business Administration (SBA), you’ll be legally required to have a workers’ compensation policy.
- Do you have company vehicles? If you do, this could indicate a need for commercial auto insurance.
- Do you depend on expensive equipment to run your business? Do you have the funds on hand to repair or replace the equipment if it were to break down? If not, you may want to consider equipment breakdown insurance.
- Are you prepared if your business needs to shut down? Does your business have the financial reserves to survive if you need to temporarily close shop due to a covered property loss or civil authority order? If not, business interruption insurance may be something to discuss with your insurance agent or broker.
- Do you work in an industry where a professional liability policy is needed? This could be a generic professional liability policy or a policy tailored to your industry, such as medical malpractice or contractors professional liability. If you’re in an industry that provides professional services or advice, this may be something to discuss with an insurance agent.
These are just a few examples of questions to ask when assessing your risk. Knowing what types of risks you face will help determine what types of coverage you should be looking at.
2. Start contacting insurance professionals. Talking to a licensed insurance broker or agent can be a great way to ease you through the process of buying commercial insurance and help you collect quotes from multiple insurers. If you can find a broker or agent familiar with your industry, that can really help speed up the process of what local business insurance requirements you’ll have to meet.
3. Gather quotes. As when shopping for other types of insurance, you’ll want to get quotes from several different insurers. Make sure you’re getting quotes for the same types of policies and coverage levels for the most accurate comparison.
Even after finding the right commercial insurance company for you, it is recommended that you reevaluate your coverage on an annual basis.
This all depends on the type of business insurance you choose. As stated above, there are various types of business insurance, including workers’ compensation, general liability, and commercial auto, and each will have its own exclusions. For example, a workers’ comp policy won’t cover clients who are injured on your premises. This would fall under a general liability policy. Likewise, an employee’s work-related injury would be covered by workers’ comp, not general liability.
In general, business insurance policies won’t cover instances of fraud, criminal activity, or intentional damage.
If you have questions about what is specifically excluded from your small business insurance policy, contact your insurance agent, broker, or company for clarification.
According to the Insurance Information Institute, all businesses should be insured, even home-based businesses. While your homeowners insurance policy may cover some business-related equipment, the coverage limits may be too low and may not provide all the types of coverage you need.
Whether or not your business insurance policy covers remote workers will depend on your specific policy. If you’re not sure whether your policy covers remote workers, reach out to your insurance agent, broker, or company for clarification.
You may not be required to purchase workers’ compensation if you don’t have employees. However, that doesn’t necessarily mean you won’t need some form of small business insurance, whether that is a business owners policy (BOP), commercial auto policy, or professional liability policy.
You can start the process of saving money by getting quotes from multiple companies. Insurance companies don’t have the same prices for the same policies and coverage limits, so you may be able to find lower prices for comparable coverage. For an accurate comparison, make sure you are looking at policies with similar coverages, limits, and deductibles.
Purchasing a package policy like a business owners policy (BOP) to satisfy your general liability, property damage, and business interruption needs can also be a cost-effective way of obtaining coverage.
Other Insurance Ratings from 360 Reviews
Why You Can Trust Us: 11 Small Business Insurance Companies and Agencies Researched
At U.S. News & World Report, we rank the Best Hospitals, Best Colleges, and Best Cars to guide readers through some of life’s most complicated decisions. Our 360 Reviews team draws on this same unbiased approach to rate the products that you use every day. To build our ratings, we researched more than 11 small business insurance companies and agencies and analyzed 10 review sources from both professionals and consumers. Our 360 Reviews team does not take samples, gifts, or loans of products or services we review. All sample products provided for review are donated after review. In addition, we maintain a separate business team that has no influence over our methodology or recommendations.
The following describes our 360 approach to researching and analyzing small business insurance companies and agencies to guide prospective consumers.
1. We researched the companies and products people care most about.
U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which small business insurance companies and agencies Americans are most interested in. We found 11 companies and agencies that stand out in terms of search volume and research among consumers, as well as across the different rating sources.
We then compared the available small business insurance companies and agencies across several criteria, including coverage limits, policy features, online accessibility, and state availability. Research shows that these are the most important criteria for people shopping for a small business insurance policy.
2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.
U.S. News’ 360 Reviews team applied an unbiased methodology that includes opinions from professional reviews as well as consumer reviews.
Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on personal opinions or experiences of U.S. News. To calculate the ratings:
(a) We compiled two types of third-party ratings and reviews:
- Professional Ratings and Reviews. Many independent small business insurance evaluating sources have published their assessments of small business insurance companies and agencies. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
- Consumer Ratings and Reviews. U.S. News also reviewed published consumer ratings and reviews of small business insurance companies and agencies. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.
Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.
(b) We standardized the inputs to create a common scale.
The third-party review source data were collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.
The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company’s or agency’s score compared to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:
- Calculating the Z-Score: The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company or agency, we calculated the mean of the ratings across all companies and agencies evaluated by that third-party source. We then subtracted the mean from the company’s or agency’s rating and divided it by the standard deviation to produce the Z-Score.
- Calculating the T-Score: We used a T-Score calculation to convert the Z-Score to a 0 to 100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
- Calculating the common-scale rating: We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0 to 5 point system.
(c) We calculated the 360 Overall Score based on a weighted-average model.
We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1 to 5 scale. Any source with an assigned weight less than two was excluded from the consensus scoring model.
We combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.
Note for evaluating workers’ compensation insurance: Workers’ compensation is insurance that provides cash benefits and/or medical care for workers who are injured, become ill, or are killed as a direct result of their job. For this subrating, we referenced professional reviews that also included our top small business insurance companies and agencies in their workers’ compensation insurance ratings.
U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.
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