Best Small Business Insurance 2023: Compare Options (2023)

Business insurance helps protect your business and its assets when you experience property damage, injuries, lawsuits or other claims that may arise from your job.

Business insurance companies should make it easy to get coverage and provide a smooth claims experience so you can get back to running your business. To determine which insurers do this best, NerdWallet evaluated their financial strength, complaint files, digital functions and customer service channels.

Here are our picks for the best small business insurance policies.

What suits your company best?

Answer a few questions and we'll match you with an insurance partner who can help you get quotes.


Travelers: Best overall business insurer


NerdWallet review


  • Offers virtually any type of commercial insurance, including specialized coverages such as key person insurance and surety bonds.

  • Received fewer commercial property insurance complaints and far fewer commercial auto insurance complaints with government agencies than expected for a company of this size.

  • You can access your certificate of insurance and track your claims through an online portal.


  • You must contact 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 customer complaint rate, wide variety of coverages, and customer support features. However, it has one major drawback: you can't get a quote or buy a policy online. Instead, you must work with an independent agent. But if you prefer a personal touch and aren't in a hurry to get cover, Travelers is hard to beat. Read NerdWallet'sreview of Travelers business insurance.

Next Insurance: Best Online Business Insurance Company


NerdWallet review


  • Received fewer commercial real estate and commercial auto insurance complaints from government agencies than expected for a company of this size.

  • Up to 10% discount if you buy more than one policy.

  • Provides a digital insurance certificate that you can share with anyone who needs it.


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  • Entrepreneurs will have to shop elsewhere for specialized types of coverage, such as insurance for directors and officers.

Why we like it:Next sells online all business insurance that most entrepreneurs need. You can shop using Next's very specific industry-specific packages and buy multiple policies in one transaction. Next also offers a digital insurance certificate, with which you can quickly prove that you are insured if a customer or landlord asks for it. Read NerdWallet'sreview from Next Insurance.

Chubb: The Best Business Owner's Policy


NerdWallet review


  • Fewer commercial property insurance complaints received from state regulators than expected for a company of this size.

  • Chubb earned the second highest customer satisfaction score in JD Power's 2022 U.S. Small Commercial Insurance Study.

  • Simple online shopping experience.


  • Online shopping is only available to companies with annual sales of less than $1 million.

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 additional expense coverage, plus accounts receivable coverage. And while the company has been in business for more than a century, its online small business experience has contemporary features, such as a bot that helps you choose coverage and buy a policy online. Read NerdWallet'sreview of Chubb business insurance.

Progressive: Best for commercial auto insurance


NerdWallet review


  • Fewer than expected commercial auto insurance complaints have been filed with government agencies between 2018 and 2021 based on market share, which is by far the largest, according to the Insurance Information Institute.

  • Specialized insurance products for truck drivers, including owner-operators, motorcycle carriers and driver carriers.

  • Commercial auto insurance includes roadside assistance, including the cost of towing.


  • Progressive refers customers to other companies for additional types of business insurance. If you need to file a claim, you work with those companies, not Progressive.

Why we like it:Progressive's commercial auto insurance policies can cover cars, trucks, buses, limousines, and other commercial vehicles. The company also offers access to a network of auto and truck repair shops and 24-hour service by phone or online. Read NerdWallet'sreview of Progressive business insurance.

Other business insurance companies

The right insurance for your company depends, among other things, on your industry, company size and location. The following insurers didn't make our top picks list, but their unique offerings may make them a good fit for you.

NerdWallet recommends tobusiness insurance quotesfrom multiple providers so that you can find the best coverage at the best price.

  • Allstateoffers an entrepreneur's policy online and other types of insurance through agents. ReadNerdWallet's review of Allstate business insurance.

  • biBERKsells several major types of business insurance online, but not all policies are available in all states. ReadNerdWallet's review of biBERK business insurance.

  • Farmersoperates in 36 states and offers basic coverages such as general liability, commercial auto and umbrella insurance. ReadNerdWallet's review of Farmers business insurance.

  • Geicosells its own commercial motor insurance and other insurance, such as general and professional liability, through Hiscox. ReadNerdWallet's review of Geico business insurance.

  • Hiscoxcan provide you with an online quote for most types of business insurance, and you may be able to purchase some policies online. ReadNerdWallet's review of Hiscox business insurance.

  • Blueberrysells policies online from other insurers and suggests policies based on your industry. ReadNerdWallet's review of Huckleberry business insurance.

  • Freedom mutualsells virtually all types of business insurance, including policies for highly specialized industries. ReadNerdWallet's review of Liberty Mutual business insurance.

  • cake insurancesells employee comp and can give you an online price estimate for a policy. ReadNerdWallet's review of Pie business insurance.

  • State farmagents can sell most types of business insurance, but online features are limited. ReadNerdWallet's review of State Farm business insurance.

  • The Hartfordoffers online quotes for a wide variety of business insurance types, and the company received high marks for its financial strength. ReadNerdWallet's review of The Hartford business insurance.

  • Vingerhoedsells policies by event or month, which can help you meet contractual requirements. ReadNerdWallet's review of Thimble business insurance.

  • Threefocuses on small business owners who want many types of insurance coverage in just one policy. ReadNerdWallet's review van Three business insurance.

  • VSAworks with military families. ReadNerdWallet's review of USAA business insurance.

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What business insurance policies are there?

There are many different onestypes of business insurancethat provide protection against certain types of risk.

Kind of insurance

When it protects your business

Who needs it

Find a provider

General liability insurance

If a third party or their property is damaged as a result of your business activity.

All companies. May be required by a landlord or contractor.

Commercial auto insurance

If you get into a car accident while at work or in a company car.

Companies that use vehicles in their operations. May be required by law.

Work allowance

If an employee is injured on the job.

Companies with employees. Required by law in most states.

Professional liability insurance

If a customer accuses you of making a mistake or giving bad advice. This is also callederror and omission insurance.

Companies that provide services for a fee. May be required by law or industry regulation.

Business premises insurance

If your production or retail space, office or assets such as equipment or inventory are damaged and need to be repaired or replaced.

Businesses with owned or leased space or a significant amount of real estate. May be required by a landlord.

Business interruption insurance

If your business cannot generate revenue for a certain period of time.

Most companies with recurring costs.

General liability insurance and commercial property insurance - and in some cases business income insurance - are often packaged and sold as abusiness policy, of BOB.

BOPs are fairly standardized, but you may be able to add certain recommendations. For example, The Hartford offers data breach coverage as an add-on, and State Farm allows you to add professional liability coverage to a BOP.

A BOP may provide adequate coverage for some small businesses that have no employees.

What is an entrepreneur's policy?

Abusiness policy, or BOP, is an insurance policy that includes three common types of small business insurance:


  • General liability insurance.

  • Business premises 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 can provide all the coverage you need.

Look for a business owner's policy that includes business interruption insurance. Also, check out the optional endorsements your provider offers — The Hartford, for example, offers data breach coverage as an add-on, and State Farm allows you to add professional liability coverage to a BOP.

What business insurance do you need?

Follow these steps to find outif your business needs insurance:

  1. Check which coverage is required by law.Some business insurance, such as workers' compensation, is required by law. Check thecompensation schemes for workers in your countryto make sure you comply. Also consider industry-specific regulations; for example, state law may require attorneys to have statutory malpractice insurance.

  2. Find out if your contracts require insurance.Landlords, lenders, and contractors may require certain types of coverage before doing business with you.

  3. Talk to a professional.If you're not sure what types of business insurance you need, a licensed commercial insurance agent in your area can help you evaluate your risks.

  4. Get an online quote.A lot ofonline business insuranceproviders ask questions during the quote process and suggest certain types of coverage as a result. For example, if you say your business is in the professional services industry, they may recommend professional liability insurance. Getting a quote can highlight certain risks and help you understand how much insurance may cost.

What does business insurance cost?

Business insurance costscan vary greatly depending on:

  • What your company does.

  • How many employees you have.

  • Where you are.

  • How public your company is.

  • Your claim history.

To get a ballpark figure, try getting a quote from oneonline business insurancecompany. They can usually provide you with a price estimate in minutes, based on some basic information about your business.

The best way to find affordable business insurance is to get quotes from several providers and choose the best option for you.

Regularly review your business insurance policies

As your small business hires employees, adds locations or expands its product line, your insurance needs will grow as well. Check your insurance policies every year to make sure they still offer the best coverage for you.

What suits your company best?

Answer a few questions and we'll match you with an insurance partner who can help you get quotes.


Frequently Asked Questions

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Best Small Business Insurance 2023: Compare Options? ›

In some instances, you might be legally required to purchase certain types of business insurance. The federal government requires every business with employees to have workers' compensation, unemployment, and disability insurance.

What are the 3 most common insurance needs that all businesses must have? ›

In some instances, you might be legally required to purchase certain types of business insurance. The federal government requires every business with employees to have workers' compensation, unemployment, and disability insurance.

How much is a $2 million dollar insurance policy for a business? ›

A $2 million general liability insurance policy for a business will cost about $64 a month, or about $768 a year, based on Forbes Advisor's research. This includes $2 million of liability insurance per claim, and up to $4 million total for the policy year.

What is the one type of insurance that every business needs to have? ›

General liability is recommended for all small businesses

Almost every small business needs general liability insurance. This liability policy provides protection against common customer or client accidents, including bodily injuries, property damage, and personal injuries.

What type of insurance is sold to small business owners? ›

Most small businesses require general liability insurance for common business risks, such as bodily injury and customer property damage. For businesses looking to save money, a business owner's policy, or BOP, bundles general liability coverage and commercial property insurance into one policy.

What types of insurance are not recommended? ›

15 Insurance Policies You Don't Need
  • Private Mortgage Insurance. ...
  • Extended Warranties. ...
  • Automobile Collision Insurance. ...
  • Rental Car Insurance. ...
  • Car Rental Damage Insurance. ...
  • Flight Insurance. ...
  • Water Line Coverage. ...
  • Life Insurance for Children.

What are the 4 most important types of insurance? ›

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.

How to calculate insurance for small business? ›

Calculate quotes by multiplying the rate by the size or revenues of your company. For example, if the quote is for 10 percent, multiply your gross revenues by 0.10 to calculate your cost. If the quote is $25 per square foot, multiply $25 by the amount of occupied square footage in your office.

How much does a $1 million insurance policy cost? ›

The cost of a $1 million life insurance policy for a 10-year term is $32.05 per month on average. If you prefer a 20-year plan, you'll pay an average monthly premium of $46.65. In addition to term length, factors such as your age, health condition or tobacco usage may affect your rates.

How much is a 5 million dollar insurance policy? ›

5 Million Life Insurance Policy Cost

Term life insurance policy is the most popular. This type of life insurance makes it much more affordable to get high levels of death benefits. The average 5 million term life insurance cost could be $190 per month or $2,280 per year.

What are the two most important insurance options available to a business? ›

Most businesses need general liability insurance, and your state's laws may require workers' compensation insurance and commercial auto insurance. But you may need other types of coverage depending on what your business does, where it operates, what kinds of assets you have and other factors.

What are the three 3 main types of insurance? ›

  • Health insurance. It allows the insured to cover up medical expenses while visiting a doctor and other major costs usually involved during surgeries. ...
  • Life insurance. ...
  • Rental or property insurance.
Jan 28, 2014

What is the most common type of business insurance? ›

Business interruption insurance, also known as business income insurance, is one of the most common types of coverage most small businesses need.

What are three examples of risks that are uninsurable? ›

Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.

Which types of insurance are worth it? ›

Here are the eight types of insurance Dave Ramsey recommends:
  • Term Life Insurance.
  • Auto Insurance.
  • Homeowners/Renters Insurance.
  • Health Insurance.
  • Long-Term Disability Insurance.
  • Long-Term Care Insurance.
  • Identity Theft Protection.
  • Umbrella Policy.
Apr 4, 2023

What type of insurance covers all risks? ›

"All risks" insurance (also referred to as open peril insurance) refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. You can find all risks insurance in a variety of industries. Examples include agriculture, business, machinery, and real estate.

What insurance company does Dave Ramsey recommend? ›

It means that Zander is the only company Dave and the entire Ramsey team recommend for term life insurance. Why? Because Zander has faithfully served our fans for two decades and will do whatever it takes to help you win. They offer the coverage you need and nothing you don't.

Which is the most important insurance policy? ›

Health insurance is arguably the most important type of insurance.

What is the most important type of insurance to have why? ›

#1: Health Insurance

Health insurance is a critical piece of every financial plan. An unforeseen diagnosis or a major accident can leave you with a six or seven-figure medical bill. That kind of financial hit could wipe your retirement savings and more.

What is the minimum amount of insurance you should have? ›

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.

Is business insurance tax deductible? ›

“Is business insurance tax deductible?” It's a question many people wonder. And generally, yes, business insurance is tax deductible. For instance, if you're operating a for-profit company, your business expenses, including insurance, can be deducted from your taxable income if it is both ordinary and necessary.

How much is $100,000 policy? ›

How much does a $100,000 term life insurance policy cost? The average monthly cost for $100,000 in life insurance for a 30-year-old is $11.02 for a 10-year policy and $12.59 for a 20-year policy.

How much is a $10,000 life insurance policy worth? ›

The $10,000 refers to the face value of the policy, otherwise known as the death benefit, and does not represent the cash value of life insurance policy. A $10,000 term life insurance policy has no cash value.

What is the most expensive insurance policy ever? ›

Somewhere in Silicon Valley, a billionaire has taken out $201 million in life insurance. Guinness World Records, which announced the policy, said it is the largest ever issued. Neither the record keeper nor the issuer would say who is covered by the massive policy.

How much does a $3 million dollar life insurance cost? ›

These rates are for a 35-year old male, in excellent health. A $3,000,000 10-year term life insurance policy is priced at $522 in annual premiums, and a 20-year term costs $1,014 a year.

How much is a $10 million dollar umbrella policy? ›

$474 for $2 million in coverage for the same household. $608 for $5 million in coverage for the same household. $999 for $10 million in coverage for the same household. $1,578 for $10 million in coverage if the household also has 2 more homes, 2 more cars, a boat under 26 feet, and a driver who is under 25.

Can I sell my $100000 life insurance policy? ›

You can sell your life insurance policy for cash. You must be the owner and insured on the policy, the policy must have a face value of $100,000, and, in most cases, you must be at least 65-years-old to sell a policy. Seniors and terminally ill people will have the most success selling a life insurance policy.

What are the 4 reasons for having business insurance? ›

The top 10 reasons for insurance coverage are:
  • Business Insurance Is Required By Law. ...
  • Business Insurance Protects Your Employees. ...
  • Business Insurance Protects Your Customers. ...
  • Business Insurance Builds Credibility. ...
  • Contracts May Require Business Insurance. ...
  • Business Insurance Can Help Recruit and Retain Employees.
Jul 13, 2022

What is umbrella insurance used for? ›

What is umbrella insurance? Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.

How can insurance protect you from financial loss? ›

How can insurance protect you from financial loss? Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

Which is always a cost when buying insurance? ›

Premium. A premium is the amount you pay to the insurance company to buy your auto policy.

What is a 3 insurance called? ›

A homeowners insurance (HO-3) policy is a coverage plan that covers your home's structure, your personal belongings and liability in the event of damage or injury. Typically, an HO-3 policy will also cover additional living expenses and protection for other structures on your property.

What is the difference between liability insurance and business insurance? ›

General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business' physical location and equipment, whether you own or lease it.

What is business insurance simple? ›

Business insurance protects businesses from the financial losses associated with unexpected events, including property damage, lawsuits, loss of income, theft, employee injuries and illnesses, and workers' compensation.

What does commercial liability insurance cover? ›

Commercial general liability (CGL) is a type of insurance policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business's operations, products, or injuries that occur on the business's premises.

What are the different lines of business in insurance? ›

line of business in Insurance

A line of business is a general classification of business used by the insurance industry, such as fire, commercial, personal, auto, or residence.

What does professional liability cover? ›

Professional liability insurance is a type of business insurance that provides coverage for professionals and businesses to protect against claims of negligence from clients or customers. Professional liability insurance typically covers negligence, copyright infringement, personal injury, and more.

What are risks that insurance firms will not cover called? ›

Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss for an insurance company to cover.

Which of the following risks can not be insured? ›

Speculative risks are almost never insured by insurance companies, unlike pure risks.

What are two non insurable business risks? ›

While some coverage is available, these five threats are considered mostly uninsurable: reputational risk, regulatory risk, trade secret risk, political risk and pandemic risk.

What are the 3 categories that cover all types of business? ›

There are three common types of businesses—sole proprietorship, partnership, and corporation—and each comes with its own set of advantages and disadvantages. Here's a rundown of what you need to know about each one.

What are the most common business insurance claims? ›

The 5 Most Common Business Insurance Claims
  • Burglary and Theft. As mentioned in the section above, incidents of theft and burglary make up one-fifth of annual small business insurance claims. ...
  • Water Damage. ...
  • Customer Injuries. ...
  • Reputational Damage. ...
  • Product Liability. ...
  • In Closing.

What are the three main risk of insurance companies? ›

Examples of insurance risks include data breaches, property damage and manufacturing issues.

What are the 5 major insurance? ›

The five largest health insurance companies by membership are UnitedHealth Group, Anthem, Aetna, Cigna and Humana.

What are the 2 major types of insurance? ›

Comprehensive and collision coverage.

Collision insurance pays to repair or replace your car after an accident, no matter whose fault it was. Comprehensive insurance covers theft and damage to your car due to floods, hail, fire, vandalism, falling objects and animal strikes.

What are the categories of small business? ›

7 small business types
  • Sole proprietorship. A small business with sole proprietorship is owned by a single individual who is liable for all business transactions, debts and lawsuits. ...
  • General partnership. ...
  • Limited partnership (LP) ...
  • Limited liability company (LLC) ...
  • Non-profit. ...
  • C corporation. ...
  • S corporation.
Mar 10, 2023

What are the four primary business types? ›

The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.

Which insurance has highest claim? ›

Max Life Insurance has the highest claim settlement ratio in terms of the number of claims with 99.34 per cent for the year 2021-22. With a 99.09 per cent death settlement ratio, Exide Life insurance and Bharti Axa Life Insurance bagged the second position.

What type of insurance is used the most? ›

Health insurance is the single most important type of insurance you'll ever buy. That's because if you don't have health insurance and something goes wrong, it's not just your money at risk -- it's your life.

What is the most frequently reported claim? ›

Wind and Hail

As the most frequent causes of filed homeowners insurance claims, wind and hail account for 45.5% of claims.

What risk do insurance companies not cover? ›

An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.

What are the 5 main risk types that face businesses? ›

Here are five types of business risk that every company should address as part of their strategy and planning process.
  • Security and fraud risk. ...
  • Compliance risk. ...
  • Operational risk. ...
  • Financial or economic risk. ...
  • Reputational risk.
Jun 16, 2021


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