THE 7 BEST SMALL BUSINESS INSURANCE COMPANIES OF 2021

Best Overall Small Business Insurance Marketplace: CoverWallet

If you want the best small business insurance overall, CoverWallet takes the gold.

CoverWallet is best suited for businesses needing all types of business insurance, without the hassle of applying to multiple companies.

CoverWallet is the best online insurance resource for all businesses since they have access to many insurers. CoverWallet is not an actual lender; rather, they act as a third party connecting you with multiple insurance companies. They work to get you approved for whatever type of insurance your business needs, not to mention access to great rates too.

Here is a quick summary of what CoverWallet offers:

• General liability
• Workers compensation
• Business owner’s policy
• Commercial property
• Professional liability
• Commercial auto
• Umbrella insurance
• Visit CoverWallet for a full list of what they cover.

Pros

• Easy platform to navigate
• Helpful information provided
• Great customer service
• Compare across multiple insurers
• Policies under a single umbrella

Cons

• Quotes are not always timely

Best Specialized Insurance: The Hartford

The Hartford is a great insurance solution for businesses that need specialized insurance coverage. Though the insurance may not cover every type, like CoverWallet does, the fact that The Hartford offers customized insurance packages, leading to lowered rates, make it one worth checking out. The Hartford has been around for over two hundred years, serving millions of small businesses, and The Hartford has maintained a great reputation for delivering some of the best-specialized insurance coverages and rates. 

Here is a quick summary of what The Hartford offers:

• Business Owner’s Policy
• Commercial auto
• General liability
• Commercial property
• Business income
• Professional liability
• Workers’ compensation
• Data breach
• Commercial umbrella

Pros

• Long history with an A+ financial strength rating through A.M. Best
• Many small business insurance types
• World’s Most Ethical Company by Ethisphere Institute
• Easy online quotes

Cons

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

Best Insurance for Micro-businesses: Hiscox

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. 

Here is a quick summary of what Hiscox offers:

• General Liability Insurance
• Professional Liability
• Business Owner’s Policy
• Short-Term Liability Insurance
• Cyber Security Insurance
• Workers Compensation
• Coverage for 180+ Professions

Pros

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

Cons

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

Best Insurance for Online Businesses: CNA

CNA offers the best insurance for online businesses, offering cyber risk insurance solutions. They are a great starting point for any size business needing a variety of business insurances. We like CNA because they offer three cyber risk insurance options, and you can pay your bill directly through their website.

Here is a quick summary of what CNA offers:

• CNA cyber risk solutions
• Commercial package
• Commercial auto
• Commercial general liability
• Equipment breakdown
• Inland marine
• International solutions
• Management and professional liability
• Ocean marine
• Professional liability
• Property
• Surety
• Umbrella and excess
• Warranty and alternative risks
• Workers’ compensation

Pros

• Specialize in business insurance only
• Cover all size businesses
• Cover over 180 different niche businesses
• Eighth largest business insurance provider in the US
• High ratings from all major insurance rating agencies
• Twenty-four-hour claims assistance

Cons

• Quote generator doesn’t always work
• Small number of customer reviews

Best Commercial Insurer: Nationwide

Nationwide is the best small business insurance for businesses needing multiple commercial insurance coverages. They cover agricultural businesses and many other industries and are among the best-rated business insurance companies in the US. 

Here is a quick summary of what Nationwide offers:

• Workers' compensation
• Business income
• Crime insurance
• Employment practices liability
• Cyber liability
• Errors and omissions (E&O)
• Equipment breakdown
• Umbrella insurance
• Inland marine
• Accounts receivable
• Builder's risk

Pros

• Wide variety of coverages
• Mobile app for Android and Apple
• Electronic billing for workers’ compensation
• A+ A.M. Best, A1 rating from Moody’s, and A+ from Standard & Poor’s

Cons

• No online chat support
• No online quotes

Best Business Liability Insurance: Chubb

Chubb is the best small business insurance company for businesses needing liability insurance because they offer multiple liability insurance policy options. Chubb sells both personal and commercial insurance policies, offering a wide range of commercial insurance products.

Here is a quick summary of what Chubb offers:

• General liability insurance (multiple liability options)
• Commercial property insurance
• Business owner’s policy 
• Professional liability
• Product liability and inland marine insurance
• Commercial auto insurance
• Workers compensation
• Environmental liability insurance
• Cyber insurance
• Specialty casualty insurance
• Umbrella 
• Surplus lines insurance

Pros

• Vast range of insurance products
• BOP insurance combines general liability and property insurance together
• Discounts for home businesses
• Friendly insurance company for startups
• In-house claims department
• High insurance ratings from top rating agencies

Cons

• Limited online services
• No rate transparency; must submit business information to obtain a rate quote

Best Small Business Insurance: State Farm

State Farm is our best small business insurer, given they have more than 19,000 private insurance agents who operate their own small businesses. State Farm agents know what it’s like to operate a small business, so they are experts at helping small businesses with their insurance needs.

Here is a quick summary of what State Farm offers:

• Professional liability
• Property
• General liability
• Errors and omissions liability
• Employment practices liability insurance (EPLI)
• Not-for-profit Organizational Liability with EPLI

Pros

• Twenty-four-hour claim service 
• Excellent financial security
• High customer ratings

Cons

• Complaints of claims being denied
• Discounts not available in all states.

What is the best insurance for small business?

The best insurance for small business depends on your specific small business and what your business needs are. In general, your business will need general liability insurance.

What insurance do I need for small business?

Small businesses need general liability and, depending on the industry you operate, may need additional types of coverages.

Do I need business insurance for an LLC?

If you operate a limited liability company (LLC), you are not legally required to have business insurance. However, it is never a good idea to operate a business without the proper business insurance and coverages.

How much is small business insurance per month?

Small business insurance can range in price from $300 to $1,000 per year for general liability insurance. Depending on your business needs will determine what coverage you need and how much you’ll pay.

Who has the cheapest business insurance?

Many factors determine the rate a business receives when applying for business insurance. It is best to get several quotes to determine the cheapest rate for your specific business.