If you're a business owner, you likely need some form of insurance to cover your work. Whether you have a fleet of vehicles to insure or just need liability coverage for freelance work, having the right coverage for your business can be a lifeline if you ever face a lawsuit, theft, disaster or other unexpected events.
Getting the right coverage can help you be sure you'll be able to take on whatever comes your way in business. Ahead, CNBC Select reviews the best small business insurance companies to consider to protect your business. (Read our methodology for more information on how we choose the best business insurance companies.)
Best small business insurance companies
- Best for variety of plans: Nationwide
- Best for independent contractors: Next Insurance
- Best for small businesses: The Hartford
- Best for medium-sized businesses: Chubb
- Best for customer satisfaction: State Farm
- Best for worker's compensation coverage: Travelers
- Best for commercial auto coverage: Progressive
Compare business insurance companies
Best for variety of plans
Nationwide Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Nationwide offers insurance policies for small and large businesses alike in a variety of industries. A number of insurance types also help business owners to tailor their coverage.
App available
Yes
Pros
- Highly rated for customer satisfaction and financial strength
- Wide variety of industries and coverages sold
Cons
- App doesn't support business policy management
Nationwide's business insurance offers customers a wide array of business coverage options in a variety of industries with the financial strength of a large insurer. It's rated third-highest for small business insurance customer satisfaction and has an A+ rating from AM Best for financial strength.
Best for independent contractors
Next Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Next covers small businesses in dozens of industries, and a number of different coverage types to choose from. Quotes and claims online make the process quick and digital-friendly.
App available
Yes
Pros
- Wide variety of policies available and quotes are available online
- Certificate of insurance available online immediately
Cons
- Not ranked for customer satisfaction
Next Insurance brings the business insurance experience into the modern era with online quotes and claims, and a mobile app allows you to access your policy documents from your phone. It offers many different coverage types that can be tailored to independent contractors' and self-employed people's needs.
Best for small businesses
The Hartford Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
The Hartford has been offering insurance policies for over 200 years and insures over 1 million small businesses. It offers coverage for a variety of industries and is highly rated for customer satisfaction.
App available
Yes
Pros
- Quotes available online
- Highly rated for customer satisfaction
Cons
- App doesn't support business policy management
The Hartford has over 1 million small business clients and has been in business for over 200 years. It's easy to estimate how much you'll pay, both with online quotes and average annual premiums for several coverage types listed on their website.
Best for medium-sized businesses
Chubb Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Chubb's business insurance is available to companies with up to $30 million in revenue. It offers a variety of services to businesses in a number of industries, and a number of coverage enhancements for business owners' policies to customize coverage.
App available
Yes
Pros
- Quotes available online
- Highly rated for customer satisfaction
Cons
- Certificates of insurance must be requested
Chubb offers a number of policies that can be tailored to medium-sized businesses with up to $30 million in revenue. Working with businesses in all sorts of industries and offering dozens of coverage types, Chubb's business insurance can fit your company's specific needs. Chubb ranked second for customer satisfaction in J.D. Power's small business insurance customer satisfaction survey.
Best for customer satisfaction
State Farm® Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
State Farm Business Insurance offers coverage to over 300 industries and is highly rated for financial strength and customer satisfaction.
App available
Yes
Pros
- Variety of coverage types and industries
- Rated A++ for financial strength by AM Best
Cons
- Online quotes only available in Wisconsin, Texas, Colorado and California
- Above average NAIC complaint index
State Farm was J.D. Power's top pick for small business insurance customer satisfaction, scoring 856 points out of 1,000. Additionally, the company earned an A++ rating from AM Best for financial strength, though it does have an above-average complaint index through the National Association of Insurance Commissioners (NAIC).
Best for worker's compensation coverage
Travelers Business Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Travelers is highly ranked for financial strength and has a below average complaint index with the NAIC. It offers unique features like TravPay, which links to payroll to your worker's compensation policy, and TravComp, which can help handle worker's compensation claims.
App available
Yes
Pros
- Rated A++ for financial strength by AM Best, and below average NAIC complaint index score
- Unique features can help manage worker's compensation
Cons
- Online quotes aren't available for business policies
Travelers is rated A++ for financial strength by AM Best, and has a very low complaint index score according to NAIC. Its worker's compensation coverage stands out with unique tools including TravPay, which can help streamline worker's compensation by linking payroll to your policy. And, in the case of a worker's compensation claim, the TravComp feature can help streamline the process.
Best for commercial auto coverage
Progressive Commercial Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
With business insurance available in 49 states, Progressive offers coverage across the US. And, with other business policies available, it's possible to bundle all the coverage you need with one insurance company.
App available
Yes
Pros
- Offers business insurance in 49 states and a variety of types of insurance in dozens of industries
- Below average complaint index by the NAIC
Cons
- Not a top 10 pick for customer satisfaction per JD Power commercial insurance study
Progressive is one of the largest commercial auto insurers by market share according to NAIC. In addition to its commercial auto insurance, it offers a number of other business coverages and has a strong financial strength rating with a below-average complaint index score.
FAQs
What does business insurance cover?
Business insurance covers businesses from the financial losses associated with unexpected events, such as property damage, lawsuits, property damage, theft, personal injury and more. While there are many different policies that cover specific situations and scenarios, one of the most popular types of business insurance coverage is a business owner's policy (BOP).
A BOP combines general liability, commercial property and business interruption insurance into one policy. Property covered generally protects the company's property from things like fire or theft. Liability coverage can protect your business from personal injury claims or defective products, like if someone were to slip and fall at your place of business. Business interruption insurance can cover the losses if your business is damaged in a catastrophe.
What are the main types of business insurance?
While the business owner's policy is the main business insurance type, there are several other coverages available, including:
- Worker's compensation: Protects your business from employee workplace illness or injuries. It's often required for businesses with employees, though can vary by state.
- Professional liability: Covers negligence and inaccurate statements not covered by general liability insurance. It's sometimes also called errors and omissions insurance, or E&O insurance.
- Commercial auto insurance: Covers any cars or vehicles your business owns.
What are the top reasons for having business insurance?
There are several reasons for having business insurance. Firstly, anything can happen when you're in business, from lawsuits to natural disasters. Having a business insurance policy can help keep your business afloat if you face any of these obstacles.
In some cases, small business insurance might be required. In many states, businesses with employees need to have worker's compensation insurance.
Do you need liability insurance to run a business?
Whether or not liability insurance is required will depend on the type of work you do, and where your business operates.
But, that doesn't change the fact that it might be helpful to have. If you do work where someone could potentially sue you for professional negligence or for injuries or damages, liability insurance could help cover the costs. According to The Zebra, an insurance comparison site, there are about 12 million contract lawsuits filed against small businesses per year, with the average liability suit costing about $54,000. A small business liability policy could help cover that cost.
Bottom line
Business insurance can help your business stay afloat no matter what comes your way. Evaluating your options based on customer satisfaction, financial strength, and the types of insurance sold can help you find the right fit for your needs.
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Our methodology
To find the best business insurance companies, CNBC Select collected hundreds of data points on more than a dozen companies offering business insurance.
When selecting the best business insurance companies, we looked at ratings on customer satisfaction from J.D. Power's small business insurance customer satisfaction study. We also compiled data from AM Best's financial strength ratings, which measure an insurance company's financial ability to pay on debts. We also considered complaint index ratings from the National Association of Insurance Commissioners. Finally, we considered the variety of industries insured and the number of types of coverages sold.
After considering the features above, we sorted the best business insurance companies by the best overall, best for small businesses, best for medium-sized businesses, best for independent contractors, best for customer satisfaction, best for worker's compensation coverage and best for commercial auto coverage.
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