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.
Business insurance companies should make getting coverage easy and offer a smooth claims experience so you can get back to running your business. To determine which insurers best 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.
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Travelers: Best overall business insurance provider
5.0
NerdWallet ratingPros:
- Offers virtually every type of commercial insurance, including specialized coverage like key person insurance and surety bonds.
- Received fewer commercial property insurance complaints and far fewer commercial auto insurance complaints to state regulators than expected for a company of its size.
- You can access your certificate of insurance and track your claims through an online portal.
Cons:
- You’ll have to connect with an independent agent to get a quote and purchase a policy.
Why we like it: Travelers earned high marks from NerdWallet for its financial strength, low number of customer complaints, wide variety of coverages and customer support features. It has one key drawback, however — you can't get a quote or buy a policy online. Instead, you'll need to work with an independent agent. But if you'd prefer a personal touch and aren't in a hurry to get coverage, Travelers is tough to beat. Read NerdWallet’s review of Travelers business insurance.
Next Insurance: Best online business insurance provider
5.0
NerdWallet ratingPros:
- Received fewer commercial property and commercial auto insurance complaints to state regulators than expected for a company of its size.
- Up to 10% discount if you buy more than one policy.
- Provides a digital certificate of insurance that you can share with anyone who needs it.
Cons:
- Business owners will need to shop elsewhere for specialized types of coverage like directors and officers insurance.
Why we like it: Next sells all the business insurance policies most entrepreneurs need online. You can shop using Next’s highly specific industry-tailored packages and buy several policies in one transaction. Next also offers a digital certificate of insurance, which should make it easy to quickly prove you have insurance when a client or landlord asks. Read NerdWallet’s review of Next Insurance.
Chubb: Best business owner’s policy
5.0
NerdWallet ratingPros:
- Received fewer commercial property insurance complaints to state regulators than expected for a company of its size.
- Chubb received the second-highest customer satisfaction score in J.D. Power's 2022 U.S. Small Commercial Insurance Study.
- Simple online shopping experience.
Cons:
- Online shopping is only available to businesses with less than $1 million in annual revenue.
Why we like it: Chubb’s business owner’s policy offers a few types of coverage that aren’t always included in BOPs: business interruption insurance and extra expense coverage, plus coverage for accounts receivable. And while the company has more than a century in business, its online experience for small businesses has contemporary features, like a bot that helps you choose coverage and buy a policy online. Read NerdWallet’s review of Chubb business insurance.
Progressive: Best for commercial auto insurance
4.0
NerdWallet ratingPros:
- 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.
- Specialized insurance products for truckers, including owner-operators, motor carriers and driver carriers.
- Commercial auto insurance includes roadside assistance, including the cost of towing.
Cons:
- 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.
Why we like it: Progressive's commercial auto insurance policies can cover cars, trucks, buses, limousines and other business vehicles. The company also offers access to a network of car and truck repair shops and around-the-clock service by phone or online. Read NerdWallet’s review of Progressive business insurance.
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.
NerdWallet recommends getting business insurance quotes from several providers so you can find the best coverage at the best price.
- Allstate offers a business owner’s policy online and other types of insurance via agents. Read NerdWallet’s review of Allstate business insurance.
- biBERK sells several key types of business insurance online, but not all policies are available in all states. Read NerdWallet’s review of biBERK business insurance.
- Farmers operates in 36 states, offering basic coverages like general liability, commercial auto and umbrella insurance. Read NerdWallet’s review of Farmers business insurance.
- Geico sells its own commercial auto insurance and other types of insurance, like general and professional liability, via Hiscox. Read NerdWallet’s review of Geico business insurance.
- Hiscox can give you an online quote for most types of business insurance, and you may be able to purchase some policies online. Read NerdWallet’s review of Hiscox business insurance.
- Huckleberry sells policies from other insurers online and suggests policies based on your industry. Read NerdWallet’s review of Huckleberry business insurance.
- Liberty Mutual sells virtually every type of business insurance, including policies for highly specialized industries. Read NerdWallet’s review of Liberty Mutual business insurance.
- Pie Insurance sells workers’ comp and can give you an online price estimate for a policy. Read NerdWallet’s review of Pie business insurance.
- State Farm agents can sell most types of business insurance, but online features are limited. Read NerdWallet’s review of State Farm business insurance.
- The Hartford offers online quotes for a wide variety of business insurance types, and the company received high marks for its financial strength. Read NerdWallet's review of The Hartford business insurance.
- Thimble sells policies by the event or month, which may help you comply with contractual requirements. Read NerdWallet’s review of Thimble business insurance.
- Three targets small-business owners who want many types of insurance coverage in just one policy. Read NerdWallet’s review of Three business insurance.
- USAA works with military families. Read NerdWallet’s review of USAA business insurance.
What kinds of business insurance are there?
There are many different types of business insurance that protect against particular kinds of risk.
Type of insurance | When it protects your business | Who needs it | Find a provider |
|---|---|---|---|
If a third party or their property is harmed as a result of your business activity. | All businesses. May be required by a landlord or contractor. | ||
If you’re in an auto accident while working or in a company vehicle. | Businesses that use vehicles in their operations. May be required by law. | ||
If an employee is injured on the job. | Businesses with employees. Required by law in most states. | ||
If a client accuses you of making a mistake or giving them bad advice. This is also known as errors and omissions insurance. | Businesses that provide services for a fee. May be required by law or industry regulation. | ||
If your manufacturing or retail space, office, or assets like equipment or inventory are damaged and need to be repaired or replaced. | Businesses with owned or rented space or a significant amount of property. May be required by a landlord. | ||
If your business can’t generate revenue for a period of time. | Most businesses with recurring expenses. |
General liability insurance and commercial property insurance — and in some cases, business income insurance — are often packaged and sold as a business owner's policy, or BOP.
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?
A business owner’s policy, or BOP, is an insurance policy that includes three common types of small-business insurance:
- General liability insurance.
- Commercial property insurance.
- 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?
Follow these steps to figure out if your business needs insurance:
- 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.
- Find out if your contracts require insurance. Landlords, lenders and contractors may require certain types of coverage before doing business with you.
- 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.
- 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?
Business insurance costs can vary widely depending on:
- What your company does.
- How many employees you have.
- Where you’re located.
- How public-facing your business is.
- Your claims history.
To get a ballpark figure, try getting a quote from an online business insurance company. They can usually show you a price estimate in a matter of minutes, based on some basic information about your business.
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.
Methodology
Business insurance ratings methodology
NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies.
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.