Best Small Business Insurance (2024 Comparison)
According to Forbes, over 40% of small businesses will likely experience a property or general liability claim in the next 10 years.
This statistic underscores the importance of having comprehensive small business insurance to protect against potential risks and liabilities.
While advocating for comprehensive general liability coverage across diverse business types, making an informed decision to secure additional safeguards is crucial.
I've worked with a team of business advisors with over a decade of experience to gather information on the best business insurance companies.
Based on Venture Smarter research, I can confidently assert that business insurance is a robust shield, mitigating various risks like property damage, employee injuries, liability claims, and legal conflicts.
Top 7 Small Business Insurances (September 2024)
1 - Progressive
Pros and Cons
- Bundle and save on multiple policies.
- Nationwide 24/7 customer support.
- Wide range of insurance products offered.
- 35 million+ customers, indicating trust and scale.
- Offers continuous insurance discount for no gaps in coverage.
- Policies can be more expensive than competitors.
Who is it for?
Who is it for?
- Small businesses needing tailored liability and commercial auto coverages.
Who is it not for?
- Larger corporations or those needing specialized risk coverages beyond the basic offerings.
The Verdict
Progressive offers a wide range of business insurance options, catering well to small and mid-sized businesses with customizable policies. However, larger enterprises might find the coverages insufficient for complex needs.
Progressive, an insurance provider, boasts extensive insurance solutions tailored to individual requirements, including personalized coverage options.
The foundation of their operation revolves around discerning and safeguarding what matters most to their clientele.
With around-the-clock, 24/7/365 customer support, they can readily address inquiries and concerns.
As someone with experience with Progressive, I can attest to their commitment to customer service.
During a recent interaction with their support team, I found their 24/7 availability truly valuable.
They exhibited a profound understanding of my insurance needs and provided clear, concise explanations of my coverage options.
This personal encounter gave me a positive impression of their dedication to assisting customers.
- Commercial Auto Policies (prices vary) : If you use your vehicles for business purposes, like job site travel or deliveries, this coverage is crucial, providing liability and physical damage protection for your business vehicles.
- Business Owners Policies (prices vary) : It merges business liability and property coverage into one policy, often chosen by small businesses with commercial buildings or personal property.
- General Liability (prices vary) : This coverage, often referred to as "business insurance," is essential for most small businesses as it provides protection against third-party claims arising from your business operations.
- Professional Liability (prices vary) : Professional liability coverage, also called Errors and Omissions insurance (E&O), defends businesses offering professional services or advice against claims of professional negligence.
- Workers' Compensation (prices vary) : This coverage protects you and your employees by covering medical costs and lost wages for on-the-job injuries or illnesses.
2 - Hiscox
Pros and Cons
- Customized policies for unique business needs.
- Fast quote process, providing instant coverage.
- Wide range of coverage including cyber security and professional liability.
- May be pricier than some competitors for certain industries.
- Coverage limitations may apply, requiring additional policies.
Who is it for?
Who is it for?
- Small to medium-sized businesses needing fast, tailored insurance solutions, especially for professional liability.
Who is it not for?
- Very large businesses or those in highly specialized industries beyond Hiscox's standard offerings.
The Verdict
Hiscox is a strong choice for SMBs requiring quick and straightforward insurance solutions, with an emphasis on professional liability and cyber security. Not ideal for large corporations or highly specialized industries.
Hiscox, a renowned international insurance provider founded in the United Kingdom in 1901, has expanded its services to include a wide spectrum of insurance, such as commercial, professional liability, home, and specialty coverage.
This has enabled the company to adapt to changing business and individual requirements.
According to Hiscox, over 500,000 small businesses choose their services for commercial, professional liability, home, and specialty coverage, showcasing their extensive reach and popularity among entrepreneurs.
Hiscox has earned its stellar reputation through innovation and a customer-focused approach, leveraging technology to simplify the insurance process.
By prioritizing digital solutions, they have enhanced the accessibility and management of policies for their clients.
In my experience with Hiscox, I've appreciated their flexibility in customizing insurance solutions for my business needs.
Their willingness to adapt and create a policy tailored to my industry requirements has ensured comprehensive coverage.
- General Liability (prices vary) : Basic protection for claims against your business.
- Professional Liability (prices vary) : Protection for specific risks in your field.
- Business Owners Policy (prices vary) : General Liability plus coverage for property.
- Cyber Security (prices vary) : Protection from cyber-related security risks.
- Workers Compensation (prices vary) : Protection for employees who are injured or become ill on the job.
- Short-Term Liability (prices vary) : Coverage for a specific period of time.
3 - Chubb
Pros and Cons
- Specializes in premium insurance solutions for individuals and businesses.
- Positive approach to customer service, looking for ways to say "yes".
- Extensive global reach providing a wide range of insurance services.
- Strong focus on the safety and protection of clients' assets.
- Premium services may come at a higher cost compared to standard insurance.
Who is it for?
Who is it for?
- Individuals and businesses seeking premium insurance services with comprehensive coverage options.
Who is it not for?
- Those looking for budget insurance solutions or minimal coverage requirements.
The Verdict
Chubb offers extensive and high-quality insurance solutions suited for those who need premium coverage. It might not be cost-effective for those seeking basic or budget coverage.
Chubb Insurance, a globally recognized insurance provider, delivers an extensive spectrum of insurance services to individuals and businesses.
Initially rooted in marine underwriting, the company expanded into diverse insurance lines, spanning property, casualty, specialty, and liability coverage.
Chubb has earned a reputation for reliability and excellence within the insurance sector through responsive customer support, personalized policies, and a widespread network of agents and brokers.
In my experience, they stood out as a top choice for comprehensive insurance solutions, offering various options and responsive support.
- Liability Insurance (price range $500 - $1,500 annually) : Coverage for personal and business liability claims, safeguarding against legal costs and settlements in case of accidents or injuries.
- Business Insurance : Specialized insurance solutions for businesses, including property, liability, workers' compensation, and business interruption coverage. Price varies widely based on business size and industry.
- Cyber Insurance (price range $1,000 - $5,000 annually) : Protection against cyber threats, data breaches, and cyber-related liabilities crucial in today's digital landscape.
4 - Travelers
Pros and Cons
- Comprehensive coverage options for individuals and businesses.
- Over 160 years of industry experience providing a stable background.
- Online tools and resources available for easy policy management.
- Strong focus on sustainability and community support initiatives.
- Some policy terms may be complex and require thorough explanation.
Travelers Insurance, a leading provider of comprehensive coverage for global travelers, has evolved to meet changing customer needs and technological advancements.
According to Travelers Insurance, their evolution to meet changing customer needs and technological advancements is backed by over 160 years of experience and a team of 30,000 dedicated professionals.
They've transitioned from traditional insurance to a digital-focused approach, improving user experiences in policy acquisition, claims processing, and customer support.
Over time, Travelers has expanded its offerings beyond travel insurance to include health, property, and auto coverage.
This evolution has cultivated a satisfied customer base, with millions benefiting from efficient claims processing, tailored policies, and competitive rates.
Through adaptability, data-driven insights, and a customer-centric approach, Travelers Insurance has established itself as a trusted presence in the insurance industry, assuring both travelers and individuals.
In my personal experience, Travelers Insurance has consistently delivered on its promises, offering a seamless online experience and responsive customer support, making navigating insurance matters much more convenient.
"Travelers’ business owners policies (BOPs) may offer discounts of up to 35% on premiums, depending on eligibility factors such as state regulations, risk assessment, and policyholder characteristics."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
- Workers Compensation (prices vary) : Helps manage risks related to employee injuries.
- General Liability (prices vary) : Provides coverage for various liabilities a business may face.
- Small Business Owner's Policy (prices vary) : A bundled package that includes multiple types of coverage.
- Management & Professional Liability (prices vary) : Covers risks related to management and professional roles.
- Cyber Insurance (prices vary) : Protection against cyber threats and data breaches.
5 - Hartford
Pros and Cons
- Offers a broad range of insurance products for personal and business needs.
- Highly rated for customer service and claims handling.
- Provides educational resources and support for risk management.
- Certain claims, especially complex ones, might take longer to process.
- Some users may experience difficulty navigating the online platform.
Who is it for?
Who is it for?
- Businesses, especially small to medium-sized, looking for a range of insurance products with significant focus on sustainability and business strategy.
Who is it not for?
- Those needing less comprehensive or more economically priced insurance solutions.
The Verdict
The Hartford offers strong business and auto insurance with a commitment to sustainability and long-term strategy, appealing to conscientious businesses. Less suited for those prioritizing low costs over comprehensive coverages.
Founded in 1810 in Hartford, Connecticut, Hartford Insurance Service, or The Hartford, initially specialized in fire insurance but has since expanded its offerings to encompass a wide array of insurance products.
These products include property, casualty, life, and automobile insurance.
Over its two centuries, Hartford has consistently adapted to the changing insurance landscape, diversifying into financial services in the early 2000s and, more recently, refocusing on its core insurance business.
In my experience, dealing with Hartford has been marked by their professionalism, responsive customer support, and a wide range of insurance options tailored to individual needs.
- Auto Insurance for Business (prices vary) : Coverage for commercial vehicles.
- Property Insurance (prices vary) : Protection for business property and assets.
- Liability Insurance (prices vary) : Covers various liabilities a business may face.
- Workers' Compensation (prices vary) : Helps manage risks related to employee injuries.
- Employee Benefits (prices vary) : Offers a range of benefits for employees, including health and retirement plans.
6 - State Farm
Pros and Cons
- Offers a personal price plan to create affordable pricing for customers.
- Mobile app features, such as biometric login and 24-hr emergency assistance.
- Various banking and investment services are offered alongside insurance.
- Prices might be higher compared to some other competitors.
- Customer service experiences can vary significantly from agent to agent.
Who is it for?
Who is it for?
- Individuals and small businesses looking for personalized insurance packages and significant discounts through bundling.
Who is it not for?
- Those who may not benefit from bundling services or prefer a more technology-driven insurance experience.
The Verdict
State Farm excels in offering personalized insurance solutions that can be bundled for discounts, ideal for small businesses and individuals. However, it might not be the best fit for those seeking advanced tech features in insurance services.
State Farm, a well-established insurance company founded in 1922 by George J. Mecherle, originally focused on auto insurance for farmers.
However, it has since expanded its offerings to encompass a broad spectrum of insurance services for individuals and businesses, including home, life, health, and other coverage options.
State Farm has continually adapted to changing customer needs and market dynamics, incorporating digital technologies to streamline processes and enrich customer interactions.
The company has also extended its financial services to include banking and investment products, establishing itself as a comprehensive financial services provider.
My experience has shown their team is very responsive and can handle different problems efficiently, but they can be pricier than other services.
- Small Business Insurance (prices vary) : A comprehensive package to help protect your business assets and operations.
- Auto Insurance for Business (prices vary) : Coverage for commercial vehicles.
- Property Insurance (prices vary) : Protection for business property and assets.
- Liability Insurance (prices vary) : Covers various liabilities a business may face.
- Workers' Compensation (prices vary) : Helps manage risks related to employee injuries.
7 - Next Insurance
Pros and Cons
- Fast and easy online quotes, providing instant coverage without hassle.
- Competitive rates with potential big savings on business insurance policies.
- Coverage is totally tailored to meet the specific needs of various industries.
- The underwriting process is strict; not all applicants may qualify for insurance.
- Policy terms and exclusions might be complex and require thorough review.
Who is it for?
Who is it for?
- Small businesses across various sectors looking for tailored policies and straightforward insurance management.
Who is it not for?
- Larger corporations or businesses looking for in-person agent support.
The Verdict
NEXT Insurance is excellent for small businesses needing specific, tailored insurance solutions accessible online. It may not be suitable for larger businesses or those preferring traditional insurance handling.
Next Insurance boasts an extensive range of commercial insurance coverage, available for quick online purchase with immediate activation.
Their offerings include general liability insurance, commercial property insurance, commercial auto insurance, worker’s compensation coverage, professional liability insurance, and tools and equipment insurance.
The company also provides digital policy management tools, facilitating the sharing of life insurance certificates and the easy addition of additional insured parties at no extra cost.
Flexible monthly payment options and discounts of up to 25% for eligible customers are available.
Next Insurance offers a wide range of convenient and flexible commercial insurance options.
This customer-centric approach has led to a substantial number of satisfied clients benefitting from their versatile coverage options.
In my experience, it is a very convenient service with a lot of options, but it could be a bit
- General Liability Insurance (starting at $30 per month) : Protection against third-party claims for property damage, bodily injury, and personal injury.
- Professional Liability Insurance (starting at $40 per month) : Coverage for professional errors, negligence, and malpractice claims.
- Commercial Auto Insurance (starting at $50 per month) : Insurance for vehicles used for business purposes, safeguarding against accidents and damages.
- Workers' Compensation Insurance (prices vary based on business type and location) : Coverage for medical expenses and lost wages in case employees are injured on the job.
Why You Should Trust Us
When it comes to selecting the right small business insurance for your needs, my comprehensive experience and background provide a solid foundation for my guidance.
As the CEO, co-founder, and editor-in-chief of Venture Smarter, I have spent over nine years assisting both startups and established businesses in understanding and mitigating the complexities of operational risks. This expertise is backed by a robust academic background in business management and further reinforced by various industry certifications.
Throughout my tenure, I've engaged with multiple insurance service providers, understanding the nuances that make each stand out. My hands-on experience with these companies has equipped me with an in-depth knowledge of what small businesses require from their insurance providers, particularly in terms of reliability, coverage options, and customer service.
Thus, when I highlight Progressive as an exceptional choice for small business insurance, it's based on a blend of firsthand experience and thorough analysis. My recommendations stem from seeing the tangible benefits that their tailored insurance solutions provide to businesses, coupled with their outstanding customer support and comprehensive coverage options.
In advocating for Progressive, I am driven by a commitment to your business's success and security. My support for their services is rooted in a proven track record of providing small businesses with the protection they need to thrive in today's market. Trust in my advice, knowing it comes from a place of experience and a desire to see your business adequately safeguarded.
How We Picked And Tested The Best Small Business Insurance?
Venture Smarter team analyzed over 30 different insurance providers, engaging with their services anonymously to gain a genuine understanding of their offerings.
The approach allowed us to experience their services firsthand like any small business owner would.
Our methodology assessed factors such as business interruption insurance, small business insurance cost, comprehensive business insurance coverage, and business income insurance.
We also assessed business property insurance and tailored a suitable business insurance policy, including a business owner's policy, with the guidance of an experienced insurance agent.
Here's a concise overview of our insurance provider selection process:
1. Comprehensive Coverage Assessment
Comprehensive coverage is crucial because it provides a safety net for various scenarios, from property damage and liability claims to employee-related issues and business interruptions.
We evaluated insurance providers based on their ability to offer coverage that addresses all major risks a small business might face. For instance, in assessing 'Property Insurance', we specifically looked at policies covering natural disasters, theft, and vandalism.
We checked if the insurers provide options for both owned and rented properties, considering scenarios such as fire damage to office equipment or water damage to stock in a warehouse.
This steps guarantee that the services we recommend cater comprehensively to small businesses' needs.
Providers like Chubb and Hiscox, known for their wide range of services and customization options, offer comprehensive coverage solutions tailored to diverse business needs.
2. Competitive Pricing Analysis
Pricing is critical for small businesses, as it directly impacts their financial planning and risk management strategies.
Affordable and transparent pricing structures are essential for businesses to ensure they are adequately covered without overextending their budgets.
Our team compared the costs associated with basic and premium plans from various insurers to understand their affordability for small businesses.
Under 'Liability Insurance', we considered how insurers priced policies for different levels of coverage and industries, such as the difference in rates for a tech consultancy versus a retail store, focusing on areas like legal defense costs and settlement fees.
Competitive pricing from Progressive, Travelers, and Next Insurance makes comprehensive insurance coverage more accessible to small businesses, supporting their growth and risk management strategies.
3. Efficient Turnaround Evaluation
Fast processing times are essential for timely policy activation and claim settlements.
We tested the responsiveness of each insurance provider by timing how long it took to receive a quote, purchase a policy, and process a claim.
Specifically, for 'Workers' Compensation', we looked at case studies where businesses filed claims for workplace injuries, noting the support provided by the insurer and the timeframe for compensation payout [1].
Known for its expedited business formation process and high customer satisfaction, Progressive likely has efficient systems for quick document handling and claim processing.
Travellers likely excel in turnaround times by transitioning to a digital-focused approach and emphasising improving user experiences in policy acquisition and claims processing.
4. Thorough Service Features Review
A range of included and additional services can significantly enhance the value of an insurance policy.
Our assessment covers customizable coverage, instant quotes, flexible payment plans, expert support, and user-friendly tools. These features contribute to a smooth customer experience for policy management and claims.
Known for its flexibility in customizing insurance solutions, Hiscox offers various services, including commercial, professional liability, cyber security, and short-term liability coverage.
Chubb offers specialized insurance solutions, including property, liability, workers' compensation, and business interruption coverage.
Next Insurance may have limitations in terms of the breadth of additional services offered, especially when compared to more established providers like Hiscox and Chubb.
5. Quality Customer Support Assessment
Efficient and responsive customer support is vital for swiftly addressing queries and claims.
We gauge customer support quality by responsiveness, knowledge, and willingness to assist.
Our goal is to recommend providers that prioritize customer satisfaction, offering guidance throughout the insurance journey.
Progressive stands out as a top performer due to its 24/7 availability and quick response times, ensuring that businesses can get support whenever needed.
Hiscox also performs well with its dedicated agents and user-friendly online tools, providing efficient and personalized support.
Next Insurance may lag in this category due to its limited availability and slower response times.
6. Local Expertise
Understanding state-specific laws and regulations can significantly impact the relevance and effectiveness of insurance coverage.
Companies like Chubb and State Farm have a widespread network of agents and brokers, which indicates local expertise.
FAQs
Should I Shop Around for Business Insurance?
Yes, you should shop around for business insurance. It's advisable to obtain business insurance quotes from at least three distinct companies. Whenever feasible, aim for policies with comparable coverage to ensure a clear and accurate price comparison.
How Do Entrepreneurs Protect Their Business?
Entrepreneurs protect their businesses through various means, including patents, trademarks, copyrights, and registered designs.
Venture Smarter Verdict On The Best Small Business Insurance
Among the options analyzed, Progressive Insurance emerges as a standout choice for small business insurance.
With an extensive coverage portfolio, inclusive of professional liability coverage and property coverage, it exudes a customer-centric approach.
The incorporation of digital policy management tools and flexible payment options elevates its appeal.
For small business owners seeking the best business insurance solutions, Progressive Insurance emerges as a reliable choice.
Its range of business insurance products and unwavering commitment to customer satisfaction make it a standout small business insurance company, ensuring comprehensive coverage and an outstanding customer experience.
Venture Smarter #1 Recommendation
Progressive
- Bundle and save on multiple policies.
- Nationwide 24/7 customer support.
- Wide range of insurance products offered.
- 35 million+ customers, indicating trust and scale.
- Offers continuous insurance discount for no gaps in coverage.
- Get the BEST PRICE until the end of September
- Policies can be more expensive than competitors.
References:
- https://www.dol.gov/general/topic/workcomp
