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No small business can prevent all types of incidents in the workplace, no matter how hard it tries. Small business insurance can protect a company in the event of unforeseen circumstances, so long as you have the right coverage. Read on to learn about the best small business insurance companies currently available and what makes them stand out.
Get your business insured with Embroker today.
The Best Small Business Insurance Companies
- Embroker – Best Small Business Insurance Provider Overall
- Next Insurance – Best for Fast Coverage
- Hiscox – Best for Specialized Coverage
- The Hartford – Best for Worker’s Compensation
- Allstate – Best for Physical Locations
When creating our list of the best small business insurance companies, we studied application approval time and which industries it best supports. We felt it was also important to offer a wide range of coverage and have an easily accessible customer support team. Our top picks also needed to have a straightforward claims process and worker’s compensation coverage in the event of a mishap.
Learn more about our methodology for choosing the best small business insurance companies here.
Embroker: Best Small Business Insurance Provider Overall
Embroker gives business owners a laundry list of coverage options to ensure all insurance needs are taken care of. At times, the depth of plans can be overwhelming, and you’re never sure what you’ll pay until you’ve put together a package. Still, a fast application process and employee and health benefits only add to its list of perks. Embroker just needs a mobile app to round out its diverse feature set.
Why we chose it: A multitude of coverage options and speedy service make Embroker the best small business insurance currently available. Read our complete Embroker review for an in-depth evaluation of its offerings.
- Several customizable plans to choose from
- Offers employee and health benefits
- Fast application process
- Unclear pricing information
- No mobile app
- Can be overwhelming to build your policy
Get your business insured with Embroker today.
Pricing: Embroker doesn’t offer much in the way of costs, as the company is a marketplace for insurance carriers. It will tally prices for different plans, and you can choose what’s best for you. Embroker will receive a commission for connecting you with available opportunities.
Approval Time
You can have an insurance plan in 15 minutes after completing the application process. The tricky part is weeding through all Embroker’s available coverage options and deciding what’s best for your business. The company will help you along the way, but you’ll want to plan a little extra time.
Industries Supported
While you can build a plan for any business, Embroker has pre-built coverage plans for tech companies, law firms, and even has an understanding of organizations dealing with cannabis. Being dedicated to small businesses, Embroker’s coverage focuses on your company’s constantly changing needs. If a pre-built package doesn’t speak to you, Embroker will help you create coverage that will.
Support
Embroker has four office locations in strategic locations, but for the most part, it is an online provider. Luckily, it’s possible to reach an agent during the work week from 9 am-9 pm eastern time. Your broker may have additional contact information.
Claims Process
To file a claim, you’ll first need to reach out to your personal broker or contact Embroker through chat. These individuals will help you through the claims process and let you know which photos or documentation to provide. Serious claims may necessitate an adjuster to review information further. Your account dashboard will keep you up to speed with your claim.
Types of Coverage
You won’t be short of opportunities to protect your business from things both in and outside your control. Whether you choose a package or not, you can cover your company from physical and virtual crime, damage, errors and omissions, and so much more. Embroker even provides health benefits for employees.
Worker’s Compensation
Worker’s compensation protects your business from costs due to injury on the job. Embroker has high policy limits to cover lost wages, medical expenses, and even death.
Next Insurance: Best Small Business Insurance for Fast Coverage
Next Insurance works solely with small businesses with the hope of providing speedy, straightforward coverage. Better yet, it’s possible to save on policies by bundling two or more into one package. Once approved, you’ll receive free digital certificates to show off your coverage. The company does lack some more specialized types for specific business models, and at times the claim process can run slow. Next Insurance isn’t in every state, so verify coverage before applying.
Why we chose it: Next Insurance has tailored business insurance in a hassle-free package that can offer big savings on the competition. Read our Next Insurance review to read more about it.
- Quick and easy application process
- Can save 10% by bundling policies
- Free digital certificates of insurance
- Lacks some specialized insurance types
- Some claims are handled out of house, slowing down the process
- Not available in every state
Check out what Next Insurance has to offer.
Pricing: You can obtain an instant quote through Next Insurance, where the company will ask a few questions about what you do. These steps will point you to the ideal policy and its associated costs. Unfortunately, Next Insurance doesn’t provide approximate costs for different plans at a glance. You can save 10% by bundling two or more policies together.
Approval Time
From the time you start your application process, you’ll have a quote in about five minutes with everything you need to know to make a decision. It’s wise to browse policies before committing to be sure you’re not missing something important.
Industries Supported
You’ll find tailored policies for thousands of professions, each designed to meet the needs of that particular area. These policies also consider the state you’re working in and additional requirements that may bring. Just some examples include DJs, daycares, landscaping businesses, and restaurants.
Support
There aren’t any physical Next Insurance locations you can walk into. Its customer support team can take your call any time between 9 am and 8 pm Monday through Friday. You can also access the crew through online chat or by email.
Claims Process
Business owners can file a claim online or by calling Next Insurance’s hotline. After explaining the details of the incident, the agent will collect the required photos and documentation to submit your claim. Most claims have decisions within 48 hours.
Types of Coverage
Next Insurance does general liability well and provides insurance for property, vehicles, and products. Those needing more specific coverage for cyber threats or directors and officers will not find what they need here.
Worker’s Compensation
Worker’s compensation through Next Insurance costs as little as $14 per month. It pays for medical expenses, lost wages, or retraining of staff after time off due to injury. You can also protect your business from employee lawsuits or take care of employees who can no longer work after an incident.
Hiscox: Best Small Business Insurance for Specialized Coverage
Hiscox has some of the best general liability insurance for small business, but it doesn’t stop there. You can choose from several standard policies or delve into specialized coverage such as medical malpractice or cybersecurity as you see fit. If things don’t go as planned, Hiscox offers a 14-day full refund policy. Plans tend to revolve around small businesses of ten employees or less but can’t cover anyone in the state of Alaska. While the claims process works well, it can take a long time to resolve.
Why we chose it: With over 120 years of experience, Hiscox has carefully curated insurance packages for over 180 unique professions. With Hiscox, chances are high that you’ll find all everything you need for your small business.
- Specialized coverage for several industries
- Over 120 years in business
- 14-day money-back guarantee
- Slow to respond to claims
- Best suited for business of ten employees or less
- No coverage in Alaska
Pricing: Even Hiscox’s pre-built insurance policies don’t reveal out-of-pocket costs to business owners. The provider does allow monthly payment options to help growing businesses avoid large expenses.
Approval Time
You can go with one of Hiscox’s tailored policies or customize one to suit your company’s needs. Once you know what you’re looking for, Hiscox will get you a quote quickly and turn on coverage the moment you approve the terms.
Industries Supported
Having over 180 business types represented is no small feat. The click of a button can reveal the coverage you need, but Hiscox will still work with you to identify any additional areas you should protect. Just a few notable professions include personal trainers, hairdressers, and real estate agents.
Support
Hiscox has nine offices scattered across the country, but most customers will have better luck by telephone. Customer service is available from 8 am to 10pm eastern time via a toll-free number. There’s no online chat feature or an email address for support purposes.
Claims Process
It can take up to a day before Hiscox acknowledges your submitted claim and a few more for the insurance provider to assign you an agent. From there, you can wait up to another week to verify your coverage and two more to have a decision.
Types of Coverage
You’ll be hard-pressed to find something not protected under Hiscox’s wide range of coverage. The company will also work with you as your business grows to include a board of directors, additional property, or specific risks in your field.
Worker’s Compensation
Costs for worker’s compensation vary depending on the number of employees you have and health risks within your organization. Should someone in your company receive an injury, Hiscox will help cover expenses due to injury, missed wages, and rehabilitation.
The Hartford: Best Small Business Insurance for Worker’s Compensation
Over one million customers stand behind the Hartford, making it some of the best small business liability insurance available. Among the Hartford’s claims to fame are its worker’s compensation packages, with policies matching your company’s needs and state requirements. Policies cover several business sectors but have no sway in Alaska, New Jersey, or Hawaii. Chances are you won’t be able to complete the application process online, and it’s wise to watch for price increases after becoming a member.
Why we chose it: Among a wide range of coverage options, the Hartford offers the best worker’s comp insurance for small businesses.
- Stellar worker’s compensation packages
- Over 1 million small business customers
- Covers a wide range of business sectors
- Most policies require talking to an agent to finalize a rate
- Some users complain of significant price increases over time
- Does not offer policies in Alaska, New Jersey, or Hawaii
Pricing: The Hartford lists average annual premiums for business owner policies at $3,135 and general liability at $1,057. Worker’s comp typically runs about $840 per year, but any of these numbers can change depending on business factors and your location.
Approval Time
It’s possible to fill out a somewhat lengthy online form or call The Hartford directly to receive a quote. Most instances require speaking with an agent to complete the application, stretching out the approval time.
Industries Supported
The Hartford works with small and large businesses alike, offering insurance needs for the masses. Industries it’s known to support include education, museums, pet services, and more. Choosing a business type reveals common policies for that sector.
Support
You’ll find a smattering of agents throughout the states affiliated with The Hartford in some way. The quote support team works 8 am to 7 pm EST during the week, and The Hartford’s claims department is available 24/7. There’s also a chat feature on the website during business hours.
Claims Process
After reporting a claim by phone or online, The Hartford hooks you up with an experienced claim handler to help the rest of the way. With a large customer base, it may take a few weeks to hear a final decision.
Types of Coverage
It’s possible to cover everything from boxes to boats with The Hartford’s spectrum of coverage. The company also offers personal home and auto policies for those looking beyond business dealings.
Worker’s Compensation
Many years in the insurance business and dealings in most states have honed the Hartford’s knowledge of worker’s compensation requirements. In addition to standard protection against medical costs, the Hartford offers preferred medical providers, prescription drug features, and other top-tier benefits.
Allstate: Best Small Business Insurance for Physical Office Locations
Allstate currently has over 9,000 locations in the United States in addition to an online service. These physical buildings do tend to drive policy costs up, and there’s no way to submit a claim online. You’ll find an impressive range of coverage options, including damage from forces of nature beyond anyone’s control. When applying, qualifications can be confusing since they vary from state to state.
Why we chose it: Allstate’s offices throughout the country make it ideal for personal connection and human beings that understand how your business works.
- Local agents in many locations around the country
- Huge range of coverage options
- Offers natural disaster coverage
- Must file claims over the phone or in person
- Prices can be high
- Qualifications vary from state to state
Pricing: It should come as no surprise that Allstate’s policies lean on the expensive side. The company has thousands of physical locations and does more with overhead and marketing than most competitors.
Approval Time
The insurance provider walks you through a series of questions about your business during the quote process. The form takes a notable amount of time to complete before even seeing what the costs will be. Finally, review and underwriting must take place before making a purchase.
Industries Supported
You won’t find ready-to-go policies for certain industries with Allstate. Instead, the quote process uncovers the nature of your business and shapes your policy through questions.
Support
Most physical offices are open during regular business hours, so you can pop your head in with a question or a claim. For urgent matters, you can call the toll-free number at any time to reach an agent over the phone. The company also has a mobile app and a presence on Twitter.
Claims Process
It is possible to file or track a claim online, but Allstate’s preferred method is through the phone system. You will have to wade through automated prompts before even starting the process. Many local offices will also handle claims for you. After an initial consultation, Allstate agents will evaluate damages and write up an estimate for repairs.
Types of Coverage
Allstate’s business policies can cover property, liability, equipment issues, and work interruptions. You may have issues locating protection for more specific means. Its focus on insurance extends to areas outside of business, such as identity protection and life.
Worker’s Compensation
There’s no clear answer on Allstate’s website regarding the protections it offers for worker’s compensation. Since policies tend to fluctuate from business to business, you’ll have to request a quote to learn more.
Ranking Methodology for the Best Small Business Insurance
In this section, we will spell out what we considered when we chose the best option. We will have one intro paragraph and then list out the criteria with what it is and how it was considered, like the following:
- Approval Time: Insurance is not something you want to do business without for any period of time. The best options don’t overcomplicate the approval process while sending quotes your way in a matter of minutes, not days. Any back and forth on terms should be similarly speedy so you can get your certificate of insurance as fast as possible.
- Industries Supported: Many of the best small business liability insurance companies have pre-built plans for a wide variety of industries. Some even customize plans based on the state you do business in. If you’re not a fan of a particular package, it’s usually possible to make changes to fit your business model.
- Support: An insurance company can have amazing coverage that does little good if you can’t connect with an agent when you need one. The top providers usually have chat, email, and phone support during hours that work well for everyone.
- Claims Process: The claims process can be one of the most arduous parts of dealing with an insurance company. The best small business insurance companies facilitate the submission process and connect you with a handler in record time. Once you’ve provided all the information needed, these providers also offer quick turnaround time.
- Types of Coverage: If your business needs to protect it, chances are these top insurance companies will cover it. While nearly all cover property or vehicle damage, the top options have innovative coverage for cyber attacks or have the means to grow with your business as you expand to new horizons.
- Worker’s Compensation: Companies with the best worker’s comp insurance for small business work to understand the specific needs of your business. They provide comprehensive plans to battle medical bills, paid leave, and rehabilitation for injured team members.
What Insurance Does a Small Business Need? – What Types of Coverage Are Available?
Insurance companies make many types of coverage available to businesses. Depending on your business model, you may need some or all of the following to ensure you’re safe in the event of a mishap.
General Liability Insurance
General liability insurance contains essential coverage you’ll find at the core of any policy. It deals with individuals outside your company threatening legal action due to injury, property damage, or negative impact on one’s reputation.
When needed, general liability insurance can deal with medical bills, property clean-up, legal defense, settlements, libel, slander, and the like.
Errors & Omissions (E&O) Insurance
Also known as professional liability insurance, errors and omissions serves to protect your business should customers sue for errors or negligent behavior in products or services you provide. It often has a broader reach than general liability insurance and works well to complement that policy.
Customers can submit legal action against you for either actual or perceived damages, and E&O insurance intercepts either of them. It covers costs you’ll need for a legal defense and any settlement costs you incur due to your mistake.
Commercial Property Insurance
Commercial property insurance unsurprisingly handles damages or loss to physical property such as a building or inventory. These damages can come from a number of sources, including fire, vandalism, theft, or even civil disobedience.
Anyone operating out of a physical location or dealing with inventory should have some form of this coverage. Unless you own a building outright, your lender will likely require you to carry commercial property insurance. Costs vary depending on the amount of coverage you request at the time of quote.
As long as you incur damage from a source listed in your plan, commercial property insurance will repair or replace damaged property as advertised.
Worker’s Compensation Insurance
Worker’s compensation exists to protect you from incidents involving your employee injuries while on the job. Most states require some level of worker’s compensation but varies from state to state.
The insurance takes care of medical bills and lost wages for the injured employee and can also help with rehabilitation costs as the worker heals. In worst-case scenarios, worker’s comp may also pay out death benefits to surviving spouses or family.
When an employee accepts the benefits of worker’s compensation, they give up their right to sue your company for whatever took place.
Commercial Auto Insurance
Commercial auto insurance protects both company vehicles and drivers in the event of an accident on the road. It can also cover damages from theft, vandalism, or other instances where the car is not in motion. In most cases, a personal vehicle can fall under commercial auto insurance if you’re using it for business purposes at the time of the incident.
This type of insurance can pay the medical bills for anyone in the vehicle and damages to the vehicle itself. When your company is the one at fault, coverage can extend to other cars or trucks involved in an accident as well.
Business Interruption Insurance
As the name implies, business interruption insurance helps offset lost income from a covered event that forces your business to close temporarily. If a disaster damages your building or someone steals necessary equipment, you can receive compensation so you don’t have to shut down for good.
Business interruption insurance may also help pay the mortgage or rent on your building or payroll for your staff. In some instances, it may give funds toward a temporary business location or additional needs to reopen doors.
Inland Marine Insurance
Any small business dealing with products, materials, or inventory moving across transport lines can opt to receive inland marine insurance. Should something happen to your assets while they travel on a truck or train, this insurance will compensate you for damage or loss.
This type of insurance only works for transportation across land and not water, as the name implies. It can also cover the costs of temporarily storing goods in a warehouse due to a logistic issue.
Cyber Liability Insurance
With so much business happening online, it’s just as important to protect your digital assets. Should your business become the victim of a cyberattack, your information and that of your customers can be taken.
Cyber liability insurance combats losses from these data breaches, viruses, and ransomware attacks. It can cover operational expenses and any fallout your clients experience from being exposed. Since these types of attacks can damage a company’s reputation, this insurance may also contain funds for public relations.
What is a Business Owner’s Policy?
A business owner’s policy lumps general liability insurance, commercial property insurance, and sometimes business interruption insurance together in one convenient package. These three forms of coverage provide a solid backbone to build the perfect policy to protect your business. Buying a business owner’s policy almost always costs less than picking up the plans individually.
Best Small Business Insurance Frequently Asked Questions (FAQs)
Small business insurance isn’t always so black and white. This FAQ serves to answer common questions about its importance at your company.
Best Small Business Insurance Companies – Bottom Line
Although small business insurance is an expense, it is a necessary cost of doing business to ensure your assets are protected. It’s imperative to obtain insurance coverage on anything you can’t afford to replace, but there are policies available for almost everything under the sun. Any of the providers listed in this article can provide the security you need to run your business without fear of disaster.
Noah is an American copywriter on a mission to help clarify the nuances of the business world through unique insights stemming from backgrounds in both engineering and the medical field. When not working, you’ll likely find him running or traveling.
