Best Small Business Insurance in Pennsylvania

The Commonwealth of Pennsylvania mandates that every business operating within the state that employs one or more people in either a full-time or part-time capacity must carry workers' compensation insurance on their employees. 

In addition, companies in Pennsylvania must also carry commercial auto insurance on any vehicles that they own and are registered to be operated on the road.

Regardless of the commonwealth’s requirements for insurance, it’s important that you secure business insurance that fits your business’s needs.

In this review, we’ll explore the best small business insurance in Pennsylvania and share what makes them the right choice.

Recommended: Next Insurance offers dedicated small business insurance to Pennsylvania small businesses.


Next Insurance

four point seventy five out of five stars



  • Work directly with an insurance provider
  • Specialized in small business insurance coverage
  • Get a quote in under five minutes


Four point five out of five stars



  • Get connected to the best provider for your business
  • Get a quote on the phone between 8 a.m.–8 p.m. (Monday–Friday)
  • Coverage for a large variety of small businesses

The Hartford

four out of five stars


  • Direct insurance provider, not a marketplace
  • Offers niche and specialized insurance policies
  • Get an online quote within minutes


four point twenty five out of five stars


  • Insures micro-businesses and startups
  • Coverage for 180+ professional services
  • Offers short-term insurance policies


three point seventy five out of five stars


  • Optimum Insurance provider for online businesses
  • Extensive cyber risk solutions
  • 24-hour claims assistance hotline

We narrowed our search down to our top 5 insurance carriers in Pennsylvania and then closely analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited to.

We also identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.

Our Best Pennsylvania Business Insurance Providers for 2023:

  1. Next Insurance: Best online business insurance with fast and simple sign-up.
  2. Tivly: Best small business insurance marketplace.
  3. The Hartford: Offers specialized coverage and custom packages.
  4. Hiscox: Good for micro businesses.
  5. CNA: Great for tech companies.

1. Next Insurance: Best Insurance for Small Business

Next Insurance has streamlined the process of getting business insurance coverage completely online and in just a few minutes. Named one of the “Top 50 Disruptors of 2022” by CNBC, Next Insurance uses AI and machine learning to provide the best small business liability insurance options catered to unique business needs.

We consider Next to be the best business insurance company for business owners looking to get fast, affordable, quality coverage without walking into an agency or sifting through aggressive sales pitches. Next Insurance not only offers the most common types of small business insurance but also offers specific insurance products by industry in each state, instant digital certificates of insurance (COI) downloads, and more to make the process easier than ever. Using their user-friendly mobile app, you can easily pay premiums, access policy documents, and even file liability claims on the go with rapid response times. 

Due to their focus on small businesses exclusively, we found their rates to be slightly lower on average than larger insurance providers.

Next Insurance Featured Coverages

  • General Liability Insurance
  • Business Owner’s Policies (BOPs)
  • Commercial Auto Insurance
  • Commercial Property Insurance
  • Professional Liability Coverage (Errors and Omissions Insurance)
  • Hired & Non-Owned Auto Insurance
  • Liquor Liability Insurance
  • Tools & Equipment Insurance
  • Workers’ Compensation Insurance


  • Same-day insurance coverage
  • iOS/Android app for easy access to your COI, to file claims, and to change policy type
  • Get a quote and purchase a policy in less than 10 minutes
  • Easy-to-use scheduler so your insurance can start on a precise date
  • Competitive premiums designed for small businesses
  • Customizable policies
  • Convenient online chat support


  • No brick-and-mortar locations/branches for in-person transactions
  • Some specialized types of insurance coverage, like key person insurance, are not available

Find the Right Coverage for Your Business

Next Insurance is a fully online provider dedicated to low-cost, high-protection coverage for small businesses. Get a quote instantly.


2. Tivly: Best Business Insurance Marketplace

If you’re looking for a marketplace with the best quotes for business insurance, Tivly takes the gold. Tivly has gathered a wide range of small business insurance companies in one place to help you narrow down the search for a policy that meets your business's unique needs. Small business owners that may be considered high risk can find what they are looking for with Tivly.

It's important to note that Tivly is an insurance marketplace instead of an individual provider. The goal of this company is to make your search more simple by showing you the top business insurance policies for your situation and streamlining the signup process. By submitting one online form, you'll receive multiple quotes for commercial insurance products from several competitors, most of whom are on this list. You'll also get a quick rundown of each policy so that you know exactly what you're signing up for.

Tivly Featured Coverages

  • General Liability Insurance
  • Lost Income Insurance (Business Interruption Insurance)
  • Business Hazard Insurance
  • Commercial Property Insurance
  • Business Owner’s Policy
  • Commercial Auto Insurance
  • Workers’ Compensation Insurance
  • Commercial Umbrella Insurance
  • Professional Liability Insurance


  • Great customer service
  • Live and rapid phone support from 8:00 a.m.–8:00 p.m. Monday to Saturday
  • Easy-to-navigate website
  • Offers a lot of information about their different insurance options
  • Works with numerous partners to provide coverage for various types of businesses
  • Great pricing options


  • Policies are issued by other insurance providers, not Tivly.

Your Business Needs Insurance

Find out which policies your business needs and how much it will cost by getting a free quote.

CALL: 833-536-1478

3. The Hartford: Good for Specialized Insurance

The Hartford is a great insurance solution for businesses that need specialized insurance coverage. Though the insurance may not cover every type, as services like Tivly do, The Hartford offers customized insurance packages with only the coverage you need, which can save you hundreds long-term. The Hartford has served millions of small businesses for over 200 years while maintaining a great reputation for delivering some of the best specialized commercial insurance coverages and rates. 

The Hartford Featured Coverages

  • Business Owner’s Policy
  • Commercial Auto Insurance
  • General Liability Insurance
  • Commercial Property Insurance
  • Lost Business Income Insurance
  • Business Interruption Insurance
  • Professional Liability Insurance
  • Workers’ Compensation Insurance
  • Cyber Insurance
  • Commercial Umbrella Insurance
  • Employment Practices Liability Insurance


  • Long history with an A+ financial strength rating through A.M. Best
  • Many small business insurance types
  • Named "World’s Most Ethical Company" by Ethisphere Institute
  • BOP insurance combines general liability and business property insurance together
  • Easy online quotes


  • Not a good option if you prefer an industry-specific insurer
  • Poor J.D. Power's "Small Commercial Insurance Study" reviews
  • Complaints through the National Association of Insurance Commissioners.

4. Hiscox: Great for Micro-Businesses

Hiscox is the best small business insurer for micro-businesses since they have helped thousands of small and micro-businesses get insured. Hiscox has a dedicated team of small business professionals who focus only on helping small businesses get the right types of coverage at the best prices. 

Hiscox Featured Coverages

  • General Liability Coverage
  • Professional Liability Coverage
  • Business Owner’s Policy
  • Short-Term Insurance Policies
  • Cyber Insurance
  • Workers' Compensation Insurance
  • Coverage for 180+ professional services


  • User-friendly online quote generator
  • Insures businesses only
  • Serves businesses of all sizes
  • High ratings by major rating firms
  • Educational website and podcast
  • Over 10,000 positive customer reviews


  • Most customer reviews are found on the company’s website.

5. CNA: Good for Tech Companies

CNA offers the best insurance for online businesses, offering cyber risk insurance solutions. If your company deals in personal or financial information or may be at risk of data breaches or online attacks, CNA offers comprehensive cyber liability policies at the best prices. We like CNA because they offer three cyber risk insurance options, as well as other niche insurance products not found with other providers. 

CNA Featured Coverages

  • Cyber Risk Policies
  • Commercial Auto Insurance
  • General Liability Policies
  • Equipment Breakdown Insurance
  • Inland Marine Policies
  • Professional Liability and Management Insurance
  • Ocean Marine Insurance
  • Business Property Coverage
  • Surety Insurance
  • Umbrella and Excess Casualty Insurance
  • Workers’ Compensation Coverage


  • Specializes in business insurance
  • Covers small-, mid-, and large-sized businesses
  • Covers over 180 niche businesses
  • Eighth largest business insurance provider in the US
  • High ratings from all major insurance rating agencies
  • 24-hour claims assistance


  • The online quote generator doesn’t always work
  • A small number of customer reviews

Small Business Insurance Review Methodology

Choosing the best business insurance comes down to five things:

  1. The type of business you have
  2. The type of coverage you need
  3. Which provider offers the best value
  4. Easy-to-navigate simple claims process
  5. Great customer service

First, we narrowed it down to the five best small business insurance providers, most of whom offer online quotes so that you can get coverage and a certificate of insurance for your business today. 

Then, we analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited for small business owners. 

Finally, we've identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.

Pennsylvania Business Insurance Requirements and Resources

Pennsylvania Insurance Requirements

The Commonwealth of Pennsylvania requires that all businesses operating within the commonwealth that employ any full-time or part-time employees must carry workers' compensation insurance on their employees. 

In addition, companies in Pennsylvania must also carry commercial auto insurance on any vehicles that they own and are registered to be operated on the road.

Workers’ Compensation Insurance

Pennsylvania’s Workers' Compensation Act mandates that all employers in the state must provide workers' compensation insurance for their employees, with very few exceptions.

The Workers’ Compensation Act requires that employers are liable for compensation for injuries (or death) that occur on the job, without regard to fault or negligence. Section 301 (a) states:

Every employer shall be liable for compensation for personal injury to, or for the death of each employe, by an injury in the course of his employment, and such compensation shall be paid in all cases by the employer, without regard to negligence, according to the schedule contained in sections three hundred and six and three hundred and seven   1 of this article:  Provided, That no compensation shall be paid when the injury or death is intentionally self inflicted, or is caused by the employe's violation of law, including, but not limited to, the illegal use of drugs, but the burden of proof of such fact shall be upon the employer, and no compensation shall be paid if, during hostile attacks on the United States, injury or death of employes results solely from military activities of the armed forces of the United States or from military activities or enemy sabotage of a foreign power. In cases where the injury or death is caused by intoxication, no compensation shall be paid if the injury or death would not have occurred but for the employer's intoxication, but the burden of proof of such fact shall be upon the employer. 

Pennsylvania goes on to define “employee” in Section 104:

The term “employee,” as used in this act is declared to be synonymous with servant, and includes-

All natural persons who perform services for another for a valuable consideration, exclusive of persons subject to coverage under the Longshore and Harbor Workers' Compensation Act (44 Stat. 1424, 33 U.S.C. § 901 et seq.) or the Merchant Marine Act of 1920 (41 Stat. 988, 46 U.S.C. § 861 et seq.) or persons whose employment is casual in character and not in the regular course of the business of the employer, and exclusive of persons to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished or repaired, or adapted for sale in the worker's own home, or on other premises, not under the control or management of the employer.  Except as hereinafter provided in clause (c) of section 302 and sections 305 and 321,  1 every executive officer of a corporation elected or appointed in accordance with the charter and by-laws of the corporation, except elected officers of the Commonwealth or any of its political subdivisions, shall be an employe of the corporation.  An executive officer of a for-profit corporation or an executive officer of a nonprofit corporation who serves voluntarily and without remuneration may, however, elect not to be an employe of the corporation for the purposes of this act.  For purposes of this section, an executive officer of a for-profit corporation is an individual who has an ownership interest in the corporation, in the case of a Subchapter S corporation as defined by the act of March 4, 1971 (P.L. 6, No. 2),  2 known as the “Tax Reform Code of 1971,” or an ownership interest in the corporation of at least five per centum, in the case of a Subchapter C corporation as defined by the Tax Reform Code of 1971.

Pennsylvania Code Title 34: Chapter 121 also requires that employees be furnished with workers’ compensation insurance information at the time of hire and as soon as possible after any workplace injury:

Section 121.3: Providing workers’ compensation information.

(a)  The workers’ compensation information specified in subsection (b) shall be provided to every employee at the time of hire and immediately after the injury, or as soon thereafter as possible under the circumstances of the injury. If the employee’s injuries are so severe that emergency care is required, the information shall be given as soon after the occurrence of the injury as is practicable.

(b)  The information shall be entitled ‘‘Workers’ Compensation Information’’ and include the following:

(1)  The workers’ compensation law provides wage loss and medical benefits to employees who cannot work, or who need medical care, because of a work-related injury.

(2)  Benefits are required to be paid by your employer when self-insured, or through insurance provided by your employer. Your employer is required to post the name of the company responsible for paying workers’ compensation benefits at its primary place of business and at its sites of employment in a prominent and easily accessible place, including, without limitation, areas used for the treatment of injured employees or for the administration of first aid.

(3)  You should report immediately any injury or work-related illness to your employer.

(4)  Your benefits could be delayed or denied if you do not notify your employer immediately.

(5)  If your claim is denied by your employer, you have the right to request a hearing before a workers’ compensation judge.

Commercial Auto Insurance

The Commonwealth of Pennsylvania requires that all vehicles owned and registered within the state must carry auto insurance. According to Pennsylvania Law Title 75: Chapter 17, Section 1786, all motor vehicles currently operated or registered in the state must be covered by financial responsibility:

(a): General rule.--Every motor vehicle of the type required to be registered under this title which is operated or currently registered shall be covered by financial responsibility.

The statute goes on to require that the registrant of motor vehicles self-certify that the registrant is financially responsible when registering the vehicle (either being covered by an insurance policy or self-insuring)

(b):  Self-certification.--The Department of Transportation shall require that each motor vehicle registrant certify that the registrant is financially responsible at the time of registration or renewal thereof. The department shall refuse to register or renew the registration of a vehicle for failure to comply with this requirement or falsification of self-certification.

And, Pennsylvania law requires that registrants of a motor vehicle provide proof of financial liability, if requested, to the Department of Transportation or police.

(c):  Consent to produce proof of financial responsibility.--Upon registering a motor vehicle or renewing a motor vehicle registration, the owner of the motor vehicle shall be deemed to have given consent to produce proof, upon request, to the Department of Transportation or a police officer that the vehicle registrant has the financial responsibility required by this chapter. Proof of financial responsibility may be satisfied under this chapter by production of a financial responsibility identification card in paper or electronic form. If an owner of a motor vehicle is providing electronic proof of financial responsibility to a police officer, the police officer shall only view content that is reasonably necessary to demonstrate proof of financial responsibility. The owner of the electronic device assumes liability for any damage to the electronic device containing the financial responsibility identification card while in possession of the police officer or agents of the department.

Pennsylvania Code Title 52: Chapter 32 - Subchapter B also sets additional specific insurance requirements for certain businesses and business vehicles, including:

  • Passenger Carriers
  • Property and Household Goods Carriers   
  • Cargo Carriers  
  • Air Carriers  

Data Breach Insurance

Pennsylvania’s Data Breach Notification Statute creates an obligation for a business that handles personal information to notify residents if their information has been or is suspected of being compromised.

The duty to inform residents if their personal information has been accessed by an authorized person exposes a business to the possibility of facing allegations of negligence. A business found at fault could find itself having to pay substantial damages, particularly if there are many affected individuals and they have suffered losses through misuse of their information. For that reason, Pennsylvania businesses should consider taking out data breach insurance, which will cover claims for compensation in such a situation.   

2303: Notification of breach

An entity that maintains, stores or manages computerized data that includes personal information shall provide notice of any breach of the security of the system following discovery of the breach of the security of the system to any resident of this Commonwealth whose unencrypted and unredacted personal information was or is reasonably believed to have been accessed and acquired by an unauthorized person.

Types of Pennsylvania Business Insurance

General Liability Insurance

The vast majority of Pennsylvania companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries. 

General liability insurance is one of the most important types of business insurance your company can purchase.

Business Owner’s Policy

A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.

Commercial Auto Insurance

You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.

Workers’ Compensation Insurance

Pennsylvania requires businesses with any full-time or part-time employees to carry workers’ compensation insurance. Nevertheless, it’s a good idea to subscribe to such insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.

Employee Health/Life/Disability Insurance

Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate Pennsylvania insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.

Professional Liability Insurance

Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes. 

Professional liability insurance includes errors and omissions (E&O) insurance.

Data Breach Insurance

If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases. 

Cyber Liability Insurance

Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.

Commercial Crime Insurance

Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.

Fiduciary Liability Insurance

Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly. 

Third parties like out-of-company consultants and benefit plan administrators are usually not protected.

Directors and Officers Insurance

Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.

Executive Risk Coverage

Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.


Do I need business insurance in Pennsylvania?

The short answer is yes, you need business insurance in Pennsylvania. Pennsylvania requires all businesses with any employees, full- or part-time, to carry workers’ compensation insurance. Employers can get workers' compensation insurance through the State Workers' Insurance Fund (SWIF) or any authorized insurance provider. Alternatively, employers can also ask the PA Bureau of Labor for permission to self-insure against liability for injuries that happen at work. 

Additionally, you must get commercial auto insurance in Pennsylvania if your company owns any automobiles or if you use your personal vehicle for work purposes.

In order to protect your Pennsylvania business, you also may need other types of insurance coverage, such as general liability insurance, professional liability insurance, commercial property insurance, or a business owner’s policy.

How much does business insurance cost in Pennsylvania?

The cost of business insurance in Pennsylvania is determined by a variety of factors, but the three that are most important are the kind of company being insured, the type of protection, and the level of protection required.

The cost of worker’s compensation is based on the risks associated with the type of business that you run and your payroll. The average national cost for worker’s compensation is 1% of your payroll costs, or $1 per $100 of payroll. In Pennsylvania, the estimated average cost for workers’ compensation is slightly higher, at $1.26 per $100.

The cost for commercial auto insurance will depend on how many and what types of vehicles need coverage, and how many business miles they will be driven each year.

The average national cost for some of the other types of insurance your business may need are:

  • General Liability: $65/month
  • Business Owner’s Policy: $99/month
  • Professional Liability (E&O): $97/month

Getting a quote is ultimately the best way to find out how much Pennsylvania business insurance will cost you.

Why do I need small business insurance?

Some professions or business contracts require that you have business insurance. If this doesn’t apply to you, insurance is still a critical component of your business portfolio. Your policy is there to protect your company and its assets from unexpected lawsuits and claims.

What kind of business insurance do I need?

The type of business insurance you need depends upon the products or services you offer and how your business is structured. Every business should have a general liability policy. If you have business tools, equipment, or vehicles, you’ll want to consider covering those assets as well.

Do I need insurance for my LLC in Pennsylvania?

In short, yes. While incorporating as an LLC in Pennsylvania protects your personal assets, your business assets are still at risk in the event of a claim or lawsuit.

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