Best Small Business Insurance Companies of 2022

Popular Small Business Insurance Companies

Running a business entails a wide range of tasks, and buying small business insurance is one of the most important. Small business insurance can help protect owners in case of unforeseen incidents, from a fire destroying inventory to an employee being injured on the job. Below, we have our rating of the Best Small Business Insurance Companies of 2022. We’ve also compiled information on how to find the best small business insurance company for you.

Two small business owners standing together at cafe entrance while smiling.

(Ridofranz)

Hiscox Insurance Logo

#1 Hiscox

Best Small Business Insurance Company of 2022

Chubb Logo

Hiscox

Best Small Business Insurance Company of 2022

Pros:

  • Wide variety of policies available

Cons:

  • May not be able to make policy changes online

AM Best Rating
A

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Hiscox is the sole company in our rating that only offers business insurance products. It provides a wide variety of different policies including medical malpractice and short-term liability. A short-term liability policy provides general or professional liability coverage for shorter periods of time compared to traditional liability policies. This can be useful for contractors who only need coverage for the duration of a project, for example.

You can get quotes through its website, and if you’re already a policyholder you can also manage some aspects of your policy. However, some changes may require speaking to your agent or broker.

While it is available throughout most of the U.S., Hiscox business insurance isn’t available in Alaska.

See Full Review »

Travelers

Pros:

  • Wide range of coverages available

Cons:

  • No online quotes available

  • May need to contact agent for policy changes

AM Best Rating
A

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Travelers has a wide variety of policies available that can provide coverage for environmental liability, or if your business operates internationally. In addition, it has standard policies like general liability and business owners policies.

To obtain a quote, you’ll need to speak to a Travelers agent or broker. As a policyholder, you’ll also need to speak to your agent or broker to make certain changes to your policy.

It offers policies in all 50 states and Washington, D.C.

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Chubb

Pros:

  • Variety of policies available

  • Some policies can be purchased online

Cons:

  • May need to talk to agent if you have questions about your policy

AM Best Rating
A++

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Chubb has a large number of policies available that can be tailored to specific industries. For example, it offers professional liability policies tailored for industries like finance and engineering. With such a large number of policies and customization available, talking with an insurance agent may be the best way to get the most of Chubb’s coverages.

Chubb clients can manage their policy accounts online, including claims reporting. However, you may need to speak to an agent in order to complete some transactions.

Chubb is available throughout the United States.

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Allstate

Pros:

  • Large number of policies, including some industry-specific coverage

Cons:

  • No online quotes or claim filing

AM Best Rating
A+

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Allstate offers most of the main business insurance products, including business owner policy (BOP), general liability, professional liability, and commercial auto. It doesn’t appear to offer workers’ compensation, unlike every other company in our rating.

While you can get a quote online, you won’t be able to file a claim online. The latter may not be an issue if you prefer to work with a person when filing a claim.

It is also available in all 50 states and Washington, D.C.

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State Farm

Pros:

  • Large number of policies, including some industry-specific coverage

Cons:

  • No online quotes or claim filing

AM Best Rating
A++

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

State Farm offers a large number of policies, including standard policies like a business owner policy (BOP), commercial auto, and workers’ compensation. It also has industry-specific coverage, such as for condominium and homeowners associations.

You won’t be able to get a quote online. You’ll have to work with a State Farm agent to obtain a quote. Given the number of policies available, this may be for the best. Policyholders also aren’t able to file a claim online.

State Farm is available in all 50 states and Washington, D.C.

See Full Review »

Nationwide

Pros:

  • Industry-specific policies available

  • Policyholders can file claims online

Cons:

  • Not available in five states

  • May not be able to purchase a policy online

AM Best Rating
A+

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Nationwide has policies designed for niche businesses like breweries, pet shops, and consulting firms. It also offers policies providing coverage for cybersecurity, employment practices, and directors and officers.

Policyholders can file a claim online, but potential customers can’t purchase a policy online.

Nationwide is available in all states except Alaska, Hawaii, Louisiana, Massachusetts, and New Jersey.

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Progressive

Pros:

  • Offers a wide variety of policies

Cons:

  • Lacks some industry-specific coverages offered by other companies in our rating

AM Best Rating
A+

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Progressive offers a number of different products ranging from business owner policies (BOPs) to cybersecurity, as well as a variety of commercial auto and truck coverages. Depending on your business, this may help to balance a lack of industry-specific coverages offered by other companies in our rating. For example, Progressive doesn’t offer medical malpractice insurance, nor does it sell farm and ranch policies.

It is available in all 50 states as well as Washington, D.C., and offers quotes online.

See Full Review »

The Hartford

Pros:

  • Wide variety of business insurance policies

  • Available in all 50 states and Washington, D.C.

Cons:

  • Some regions have fewer agencies than others

AM Best Rating
A+

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

The Hartford has a lot of business insurance policies. If you look at its Ocean Marine policies alone it has Ocean Cargo, Marine General Liability, and Hull & Machinery policies. These policies can be tailored by adding endorsements to improve coverage. And if your business works across national borders it can provide multinational coverage as well.

The Hartford sells policies in all 50 states and Washington, D.C. However, some areas may not have the same density of agencies as others.

See Full Review »

Liberty Mutual

Pros:

  • Offers specialized coverage for niche industries

  • Available in all 50 states and Washington, D.C.

Cons:

  • May not be able to file claims online

  • No short-term liability policies

AM Best Rating
A

Can File Claims Online

General Liability

Professional Liability

Workers’ Compensation

Liberty Mutual offers policies in all 50 states and the District of Columbia. It has a wide range of policies, including specialized coverage for niche industries like railroad and energy businesses. It doesn’t offer short-term liability or farm and ranch policies, but it does offer policies that cover equine and livestock.

Small businesses, which Liberty Mutual defines as companies with less than $250,000 in premiums, will be unable to file their claims online and will instead need to call the company to do so.

See Full Review »

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. We’ve compiled a list of the Best Workers’ Compensation Insurance Companies of 2022 to help narrow your search for the best workers’ compensation policy for your business.

Hiscox Insurance Logo

#1 Hiscox

Best Small Business Insurance Company of 2022

Chubb Logo

Choosing the right small business insurance company can be confusing. Here are some tips to start your search.

  1. Determine what coverages your business needs. This includes looking to see if the company offers the policies you need in the state your business is located.
  2. 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. All the companies in our rating have an AM Best rating of A or higher as of the date of publication. According to AM Best, an A rating means a company has an “Excellent” ability to meet its financial obligations.
  3. 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 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.

General liability insurance provides coverage against things like:

  • Bodily injury to non-employees, such as customers or clients
  • Property damage
  • Libel and slander

This policy may cover other types of risks as well, so read your policy to know what exactly this will provider coverage for.

Professional liability insurance, sometimes referred to as Errors and Omissions (E&O), provides coverage for financial damages as a result of a mistake your company makes. Examples include professional negligence and failure to meet standards of service.

Commercial auto insurance, also known as a business auto policy (BAP), provides insurance for the vehicles your business uses. This policy may or may not cover your private vehicle if you use it for your business, so check your policy for clarification. Commercial auto policies will typically cover auto liability and auto physical damages coverages.

Commercial property insurance is sometimes referred to as business property insurance. It is similar to a homeowners insurance policy in that it provides coverage for the physical structure of the building where your business is located, as well as its contents. This can include everything from inventory to furniture and even your documents. If your business suffers property damage from a covered loss such as a fire, this is when a commercial property policy would come into play. Also like a homeowners policy, you can often choose between actual cash value and replacement cost to assess the value of covered property.

Equipment breakdown insurance is specifically for equipment that you use in your business. This could be a computer in a law office or a stove in a restaurant. It provides coverage either to repair or to replace the broken equipment. It will also sometimes cover damage to property caused by the equipment breaking down.

A business owner policy (BOP) doesn’t provide a single type of coverage, but instead combines several different coverages into one policy. BOP typically includes both liability and property coverage in a single policy. Depending on the insurance company, it may also include other types of coverage such as business interruption or continuation coverage. Another benefit for small business owners is that a BOP can save money over purchasing the policies separately.

But a BOP may not be the only insurance policy a small business needs, as it generally doesn’t include commercial auto or workers’ compensation coverages.

Because there is a wide variety of factors that go into determining the cost of business insurance premiums and insurance companies may have different underwriting processes to determine a small business’s level of risk, it can be difficult to provide a definitive answer as to the cost of premiums. Here are some of the factors that go into determining how much your business will pay in premiums for insurance coverage:

  • Type of business. The type of business you run will play a large part in how much your premiums will be, as it can help determine what types of policies you are legally required to carry as well as the level of risk an insurer will have providing you with coverage. For example, a commercial gym with lots of customers, equipment, and a physical location will likely have a higher level of risk and required coverage than a self-employed editor working out of a home office, who doesn’t have clients visiting their home. 
  • Location. Where your business is located will play a significant role in determining the cost of business insurance. While the federal government mandates some types of insurance, states will also have regulations as to what types of coverage is required for businesses. 
  • Number of employees/payroll. The more employees you have, the higher your premiums will be for certain types of insurance like general liability. Payroll can also factor into premiums for certain types of policies, such as workers’ compensation. 
  • Claims history. As with many types of insurance, those with multiple past claims may be considered a higher risk to insure and have more expensive premiums as a result. The same is true for business insurance.
  • Coverage limits. The more coverage you have, the higher your premiums will be. 

This is not intended to be a comprehensive list of factors that determine premiums, but instead a place to start in helping you understand what goes into determining insurance premiums for business insurance coverage.

Depending on the type of company you own and what state you live in, business insurance may be required. For example, the Small Business Administration (SBA) states that if a business has employees, then workers’ compensation, disability, and unemployment insurance are required by the federal government. 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.

Regardless of the state and federal government requirements, your landlord may also have business insurance requirements if you’re leasing space.

What types of coverage should I get? 

The types of coverage your business needs will depend on a number of factors, including any requirements from the federal and state governments, as well as your landlord. You should check with your insurance company, agent, or broker for more information.

This will be based on a number of factors such as:

  • Type of business you have. Some industries, such as certain kinds of manufacturing, come with higher associated risks than other types of business. 
  • Size of your business. Larger businesses with more employees and a larger client base will require larger amounts of coverage than smaller ones. 
  • Location of your business. Different states may require different levels of 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 in 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? As an example, if you run a small machine shop, you may require some very expensive equipment in order to effectively operate. Do you have the funds on hand to repair or replace that equipment if it were to break down?
  • Are you prepared if your business needs to shut down? Does your business have the financial reserves to survive if you need to close shop temporarily, such as for making major repairs? 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. If you’re in an industry where there is a chance of being sued over your work, this may be something to discuss with an insurance professional. 

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 re-evaluate your coverage on an annual basis.

Do I need small business insurance if I work from home?

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.

Does small business insurance cover remote workers?

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.

Do I need small business insurance if I don’t have employees?

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, commercial auto, or a professional liability policy.

How can I save money on a small business insurance policy?

You can start the process of saving money on business insurance even before you have a policy 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 the same policies and amount of coverage.

Another way to save is to ask your agent, broker, or insurance company about discounts. For example, Hiscox offers a 5% rate reduction to customers who have more than one policy with the company.

For more information on small business insurance read our other pages.

Other Insurance Ratings from 360 Reviews

Other Business Services Ratings from 360 Reviews

Why You Can Trust Us: 34 Small Business Insurance Companies 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 34 small business insurance companies and agencies and analyzed 10 third-party reviews. 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 home insurance 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 companies and agencies Americans are most interested in. We found 34 insurance companies and agencies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources. After conducting a thorough analysis, we were able to condense the initial list to the 10 overall Best Small Business Insurance Companies. With the companies determined, we conducted comprehensive research on their features to create a general layout of what consumers should know to assist with their purchasing decisions.

We then compared available plans provided by our top small business insurance companies and agencies across several criteria, including coverage limits, policy features, online accessibility, and availability. Research shows that these criteria are among the most important considerations to people shopping for small business insurance.

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 and their plans. 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 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, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the mean from the company’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 0-100 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 0-5 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 1-5 scale. Any source with an assigned weight less than one was excluded from the consensus scoring model.

Finally, 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.

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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