Insurance is a necessity for all businesses, no matter how small. It protects your business from unexpected events and covers costs of damage or theft.
The right insurance can protect your business from financial ruin, but it’s important to find the right company that offers a product that meets your needs at a price you can afford.
Best Small Business Insurance Companies
What Are Small Business Insurance Companies
Small businesses are growing in popularity, as they provide an opportunity for entrepreneurs to operate their own businesses while remaining independent.
In fact, the small business market has been steadily growing since the 2008 recession.
There are many benefits to running a small business, but one of the biggest is that you can take advantage of the tax breaks and insurance protections offered by the government for smaller companies.
This article will introduce you to some of the best small business insurance companies so that you can find out what kind of coverage you may be missing out on by not having adequate coverage for your business.
What Are The Best Small Business Insurance Companies?
There are many different types of business insurance policies available, so choosing the right one can be overwhelming.
Here’s what you need to know about small business insurance companies:
Why You Need Business Insurance
Business insurance is a package of policies that protect your company in various ways. You may have heard this called “liability insurance.”
This means that if someone is injured on your property or if something gets damaged as a result of your negligence, then you are responsible for paying for their medical bills and any damages caused by your actions.
Insurance allows these costs to be paid by an outside entity instead of coming out of your pocketbook.
Other types of coverage include:
- property damage liability (if someone crashes into one of your buildings),
- commercial auto policy (if someone gets hurt in an accident involving one of your vehicles),
- workers’ compensation (in case any employees get hurt at work),
- and more.
1. Liberty Mutual
Liberty Mutual is an insurance company based in Boston, Massachusetts that provides a range of insurance products and services to individuals and businesses. Liberty Mutual’s core business is providing property and casualty insurance products.
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Key Features
- You can compare prices and coverages before you buy.
- You’re backed by a company that’s been around since 1912, with over $60 billion in assets.
- You get 24/7 customer support from licensed experts who are ready to answer your questions about home, auto and business insurance plans in your state.
- We have an A+ rating from the Better Business Bureau (BBB).
Liberty Mutual will migrate to CoreLogic's cloud-based insurance hub, marking a major investment in technology. The insurance hub uses an open architecture and industry-leading API framework, making it easy for Liberty Mutual adjustors to connect to a host of innovative third-party InsurTech solutions.
2. Nationwide
Nationwide is the UK’s second largest general insurer. The company specialises in home and motor insurance, but also provides travel, pet and small business insurance policies.
Key Features
- Nationwide Coverage: We operate in all 50 states and the District of Columbia, as well as in Puerto Rico and the U.S. Virgin Islands.
- Nationwide Claims: We process claims on behalf of over 100 insurance companies. If you have a claim with any one of those companies, you can file it with us.
- Nationwide Rates: For auto insurance coverage, we offer discounts for good driving records, anti-theft devices and other features that can save you money on your premium every month.
- Nationwide Service: Our friendly customer representatives are available 24 hours a day, 7 days a week to assist with any questions or concerns about your policy or coverage needs.
Nationwide Mutual Insurance Company and affiliated companies, commonly shortened to Nationwide, is a group of large U.S. insurance and financial services companies based in Columbus, OH.
3. Progressive Commercial
Progressive Commercial is a full service insurance company that has been in business for more than 100 years. The company has access to over 200 insurance companies and offers a wide range of products from property and casualty to health and life insurance, including commercial auto coverage.
Progressive Commercial offers its customers many different types of commercial auto coverage including:
- Bodily Injury Liability – This type of coverage provides protection against claims filed by someone injured in an accident caused by your vehicle. This includes medical expenses and lost wages as well as pain and suffering damages awarded by a court of law if you are found liable for the accident.
Key Features
- -Business Solutions – Progressive Commercial offers a wide range of business solutions that are designed to help you grow your business.
- Progressive Commercial offers a wide range of business solutions that are designed to help you grow your business.
- Online Banking – With online banking, you can bank anytime and anywhere from a computer, tablet or smartphone.
- Mobile Banking – Mobile apps allow you to bank whenever and wherever it’s convenient for you. You can also use mobile banking to deposit checks with your smartphone camera and pay bills from anywhere.
Commercial business insurance is coverage for businesses and corporations, generally designed to cover the business, its employees and ownership. Since there are so many types of businesses with different needs and situations, commercial insurance can come in many shapes, sizes and colors.
4. The Hartford
The Hartford is the largest mutual insurance company in the United States and it’s a part of AIG. The Hartford provides insurance products to individuals, families and businesses.
The Hartford was founded in 1810 as an industrial life insurer, but has since expanded into a variety of other areas including property/casualty insurance, retirement services and financial planning.
The Hartford has been rated A+ by AM Best for many years running due to its strong financial position. Their financial strength has allowed them to expand into new markets and offer new products to their customers.
The Hartford offers both auto insurance and homeowners insurance policies through their subsidiaries, The Hartford Insurance Company (THIC) and The Connecticut Indemnity Company (TIC).
They also offer supplemental health care plans through their subsidiary, The Medical Protective Company (TMC).
TMC is one of the largest medical malpractice insurers in the country with over 50 years of experience providing coverage for physicians who practice medicine outside hospitals or other institutions.
Key Features
- A wide range of insurance products and services. The Hartford has more than 50 subsidiaries that provide coverage for everything from auto, homeowners and renters insurance to life and annuities policies. These products are sold through agents, brokers and independent financial planners who can help clients find the best fit for their needs.
- An award-winning customer service team that provides accurate quotes, answers questions and provides 24/7 support when needed. Customers can contact The Hartford by phone, email or through its online chat feature at any time of day or night.
- A variety of discounts available with each policy purchased through The Hartford including multi-product discounts, bundling discounts (for purchasing multiple policies at once), new home discounts (for moving into a new home) and high net worth discounts (for having a higher net worth than most people).
The Hartford is a leader in property and casualty insurance, group benefits and mutual funds. With more than 200 years of expertise, The Hartford is widely recognized for its service excellence, sustainability practices, trust and integrity.
5. State Farm
State Farm is the top homeowners insurance provider in the United States. The company has been around for more than 85 years, and it has more than 17,000 agents and more than 50,000 employees.
State Farm offers several different types of homeowners insurance policies, including:
- Standard homeowners (HO-3) – This policy covers personal property and liability to others for bodily injury or property damage up to $1 million.
- All risk (HO-6) – This policy covers a wider range of losses, including fire and lightning, windstorm and hail, explosion, smoke damage, earthquake and flood. It also provides coverage for additional living expenses if your home becomes uninhabitable.
- Modified all risk (HO-7) – This policy is similar to an HO-6 policy but has higher limits on certain losses like burglary or vandalism.
If you have an HO-7 policy and someone breaks into your home, they could be eligible for up to $500 in reimbursement from State Farm if they were injured during the break-in.
Key Features
– Deductibles
– Coverage for your home and your auto
– Car rental benefits
– Emergency roadside assistance
– Travel Accident Insurance
Our target includes 18-25 year-old financially independent young adults, current college students nearing graduation, and young professionals. We have also identified a subset within this market—State Farm legacy policyholders.
What are Small Business Insurance Companies?
Small Business Insurance Companies are companies that offer insurance to small businesses. They have many different types of policies, but you should make sure you get the right coverage for your needs.
When looking for a small business insurance company, it is important to know what type of coverage you need. This will help you choose the right policy and make sure that you don’t overpay for unnecessary coverage.
Why Do You Need Small Business Insurance?
If you own a small business, then it is essential that you have an insurance policy in place. If something happens to your building or equipment, then you will want to be able to pay for it without worrying about money problems later on down the road.
Insurance can help protect your assets from damage caused by natural disasters or other problems that may arise during normal operation of your business.
What Types Of Policies Do Small Businesses Need?
There are several different types of policies that are available for small businesses: general liability, property damage and auto insurance are just some examples of policies that will be needed by most businesses who operate in public areas such as shopping malls or restaurants where there are customers coming in every day.
Different Types Of Business Insurances To Consider
There are many different types of business insurance to consider, each with its own unique coverage, benefits and exclusions. It can be overwhelming when you’re trying to figure out what kind of business insurance you need and which companies offer the best policies at the best prices.
Here are some of the most common types of business insurance:
General Liability Insurance: This type of business insurance protects against claims related to bodily injury or property damage that you may cause while operating your company. General liability coverage is typically required by law in most states and is sold by most insurance carriers.
While some small businesses may be able to get away with only purchasing general liability coverage, most businesses will want to consider adding additional coverages such as product liability and umbrella liability insurance.
Commercial Property Insurance: Commercial property insurance protects against damage or loss to your building(s) or equipment due to fire, vandalism, theft or other covered losses.
Depending upon the type of equipment you have in your office or warehouse, commercial property insurance may also include coverage for computers and electronic data as well as off-site storage facilities.
Commercial Auto Insurance: Commercial auto insurance provides protection for vehicles used for business purposes (as opposed to personal use).
Products Liability Insurance
Products liability insurance is an important type of business insurance coverage that manufacturers and retailers may need in the event their products cause bodily injury or property damage.
Products liability insurance can help protect businesses from lawsuits related to product defects, manufacturing errors and marketing mistakes. This coverage is typically included in a general liability policy and sometimes in a commercial auto policy.
Products liability insurance protects businesses against lawsuits arising from defective products or services. The policyholder can be held liable for damages caused by faulty products or services that were sold or provided.
It also covers legal defense costs if the insured is sued for negligence or failure to warn about potential hazards associated with their products or services.
The types of claims covered under this type of insurance include:
Defective parts: Products liability insurance will cover legal costs if your company is sued because a part was defective.
For example, if your company manufactured an aircraft with defective parts that caused an accident, the airline would be able to file a claim against your company’s policy to recover damages paid out on behalf of passengers injured during the crash landing as well as any litigation expenses incurred defending against these claims.
General Liability Insurance
General Liability Insurance is a type of commercial insurance policy that protects businesses from liability claims or lawsuits. These policies can be customized to fit the needs of your business and can include coverage for bodily injury, property damage, products liability and medical payments.
General Liability Insurance covers a variety of losses that may occur in connection with your business. Business owners purchase this insurance because it protects their business from claims of negligence or wrongful acts by an employee, customer or visitor to their premises.
General Liability Insurance also covers claims brought against you as an owner of a business entity (such as a corporation, limited liability company (LLC) or partnership).
The policy provides protection against many different types of potential claims including:
- Bodily Injury Claims – This includes injuries suffered on your property by an employee, customer or visitor. Bodily Injury Claims can include broken bones, burns and other serious injuries caused by unsafe conditions at work.
- Property Damage Claims – Property Damage Claims cover damage to other people’s property by your employees, customers or visitors while on your premises.
For example, if one of your employees accidentally breaks someone else’s car window while washing it at work then this loss would be covered under this part of the insurance policy.
Errors and Omissions Insurance (E&O)
Errors and Omissions Insurance is a type of insurance that protects any business which provides professional services from potential lawsuits related to errors or omissions in their work.
It also covers claims made against the insured for failure to meet the reasonable standards of care required by law.
Errors and Omissions Insurance provides coverage for both lawyers and non-lawyers, including accountants, engineers, doctors and architects.
The policyholder may be an individual or a company that employs attorneys or other professionals who provide advice or other services on behalf of the insured.
The policyholder pays a premium to an insurance company which agrees to pay all costs associated with legal action brought against the insured because of alleged professional negligence on their part. The policyholders must be licensed professionals such as a doctor or lawyer.
Legal Liability Coverage — This coverage protects your business from lawsuits due to alleged professional negligence covered by this policy.
Types of legal liability include: malpractice claims; wrongful death suits; libel and slander claims; breach of contract suits; copyright infringement suits; misrepresentation claims; fraud suits and more! Some carriers offer expanded coverage options.
Property Insurance
In addition to the contents of your home, you also need to consider insuring other items such as your car and personal belongings.
Property insurance covers damage to your home and its contents. It also protects you if someone is injured on your property or if something is stolen from it.
Home insurance usually includes buildings cover and contents cover. Buildings cover will pay for damage to your home or other structures such as garages, fences, walls and patios.
Contents cover will pay for the cost of replacing or repairing your belongings, such as furniture and appliances.
You may need extra buildings cover if you have expensive items such as antiques or artworks in your home.
You may also need additional contents cover if there are more valuable items than usual in your home, for example if you have a collection of silverware or jewellery which would be difficult to replace at short notice.
Crime Insurance
Crime Insurance is a type of insurance that helps protect you from direct loss of property or money caused by criminal acts. This includes theft, burglary and robbery.
Crime Insurance can help pay for your losses if someone steals your property or causes damage to it. If a burglar breaks into your home and steals $10,000 worth of jewelry, the insurance company will pay you back up to $10,000 for the stolen items.
In addition to covering the cost of stolen items, crime insurance can also cover any damage done to your home or car by criminals.
Another benefit of crime insurance is that it covers legal fees associated with filing a claim against an individual who committed a crime against you or your property. It also covers any wages lost due to time spent on police reports, court appearances and other legal matters related to the theft or damage done to your property by criminals.
Workers Compensation Insurance
Workers compensation insurance coverage is a state-mandated insurance policy that protects employers from liability for injuries suffered by their employees at the workplace.
Workers compensation insurance covers medical treatment, wage replacement, and other benefits to employees who suffer job-related injuries or illnesses.
Workers Compensation Insurance Coverage
Workers compensation insurance covers medical treatment, wage replacement, and other benefits to employees who suffer job-related injuries or illnesses.
Benefits of Workers Compensation Insurance
Workers compensation insurance provides income replacement if an employee cannot work due to an on-the-job injury or illness.
The benefit amount varies by state but is usually between 50 percent and 70 percent of your normal earnings at the time of injury. In many states, this amount increases as you accrue more years of service with your employer.
Most states also provide additional benefits such as vocational rehabilitation services and death benefits.
Other Types of Insurance Coverage
If you’re self-employed or own a small business, then you might want to consider purchasing additional types of coverage in addition to workers compensation insurance:
Umbrella Insurance
Umbrella insurance, also known as excess liability insurance, is a type of liability insurance that can help protect you from the costs associated with a lawsuit if you’re held liable for damages or injuries caused by an accident.
Umbrella policies are typically purchased in addition to other types of insurance such as auto or home insurance.
Is Umbrella Insurance Right for You?
Umbrella policies are best suited for people who have assets that could be targeted in a lawsuit, such as their home or business. They can also be useful for anyone who wants additional liability coverage but doesn’t have enough to purchase it through their current policy.
Umbrella policies usually have low deductibles, so they may not be ideal for someone who expects to pay out-of-pocket when making a claim.
Factors To Consider Before Buying Small Business Insurance
How many employees do you have?
The number of employees at a business can impact the type of insurance you need and how much you should spend on it.
If you have only one employee and don’t need workers’ compensation coverage, liability coverage may be enough for your needs. But if you have several employees who might cause damage to your property or others’, property coverage may be a good choice.
What kind of business are you running?
The type of business can affect what kinds of risks you face, which in turn will influence which types of policies make sense for your operation.
For example, if your company makes and sells products that might cause injury or illness if they’re defective (such as food), then product liability insurance might be necessary.
If there’s no possibility that someone could get hurt by using one of your products (such as a software application), then this type of policy may not be necessary — or at least not as important as other types.
Best Small Business Insurance – Wrap Up
The best small business insurance helps you first to determine the types of risks that you face.
If you have a lot of employees, then you need to be aware of workers’ compensation. If you are in an industry that is prone to natural disasters, then you will want to consider earthquake coverage.
Once you have identified the riskiest aspects of your business, it is important that they are insured against loss. It is also important that any employees who might be injured or killed during their time working for your company have benefits paid out to them after their death by either a life insurance policy or worker’s compensation coverage.
It is also necessary to ensure that all policies have a deductible so that if something happens, it will not cost you more than what was originally paid out by insurance companies.
