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5 Best Business Insurance Companies
By Kat Tretina MONEY RESEARCH COLLECTIVE
Whether you are self-employed, own a startup or have an established business with dozens of employees, you likely need business insurance to protect your company and finances.
Business insurance provides coverage for your property, but it can also protect you against liabilities — one of the biggest risks you may face as a business owner. According to the Small Business Administration, between 36% and 53% of small businesses are involved each year in litigation, and legal costs range from $3,000 to a staggering $150,000.
To help you find the right business insurance coverage, we researched and evaluated leading commercial insurers and identified the top seven best business insurance companies based on their available coverages, customer satisfaction ratings and financial stability.
Our Top Picks for Business Insurance
- Best Overall: State Farm
- Best for Customer Satisfaction: Allstate
- Best for Freelancers and Independent Contractors: Hiscox
- Best for Mid-Sized and Large Companies: Nationwide
- Best Business Insurance Marketplace: CyberPolicy
Best Business Insurance Reviews
Best Overall: State Farm
Why we chose it: State Farm is our choice as the best overall provider of business insurance policies because it offers a wide range of coverage options, including commercial liability, builders risk insurance, professional liability coverage and workers’ compensation. It even offers coverage to not-for-profit organizations whose insurance needs may be different than those of for-profit enterprises.
- Offers a wide range of business coverages and insurance products
- Covers over 300 professions
- A huge network of local agents provides personalized assistance
- Online quotes aren't available
- Standard of customer service is dependent on your local agent
- Limited options for larger companies
Those looking for small business insurance will find State Farm caters to over 300 professions — from baker to psychologist or painter. Those with mid or large-sized companies, however, may find its coverage insufficient for their needs.
State Farm is highly rated in terms of customer satisfaction. In fact, it was J.D. Power’s second choice in its 2021 U.S. Small Business Commercial Insurance Study. State Farm also has an A++ (superior) rating from AM Best for financial stability, the highest possible rating.
Customer service is a mixed bag, though. On the upside, State Farm’s sizable army of insurance agents means you shouldn’t be far from face-to-face help, perhaps even in your own community. However, insurance can only be purchased through an agent, so you can’t get a quote for State Farm commercial insurance online. And the quality of your experience largely depends on the caliber of your local agent.
Best for Customer Satisfaction: Allstate
Why we chose it: Allstate was the top-ranked company in J.D. Power’s 2021 U.S. Small Business Commercial Insurance Study, which evaluated and ranked 10 leading companies on interaction, policy offerings, price, billing and claims.
- Top-rated company for customer satisfaction
- Online quotes available
- Multiple optional riders can be added to your policy
- Does not insure all business types
- Policies must be purchased through an agent
- Limited online capabilities
Allstate is a leading insurance carrier. Beyond the personal auto and homeowners policies it’s known for, it also offers multiple options for business owners. Allstate customers can purchase commercial auto, property and liability coverage. And it offers a variety of optional add-ons you can purchase to customize your coverage, including home-based business insurance and cyber-attack protection.
Allstate does offer online quotes, unlike some other insurers with an extensive network of agents. However, even if you begin your shopping online, the policy must be finalized with an agent. Also, Allstate won’t insure all business types and, depending on your business, it may refer you to a partner insurance company.
Best for Freelancer and Independent Contractors: Hiscox
Why we chose it: Hiscox offers coverages for freelancers and independent contractors, such as errors & omissions insurance, cyber security and business owner’s policies (BOP) that combine general liability and property coverage.
- Coverage options for all types of small businesses
- Manage policies and file claims online
- Online quotes available
- Some products are issued by third-party partners
- Not all business types are eligible for coverage
For freelancers, professional services providers and those that run home-based businesses, Hiscox makes it easy to get business insurance. You can get quotes and purchase coverage online, and your policy can go into effect right away and start protecting your business. Hiscox is also one of the few insurers that offers coverage for those with side gigs rather than full-time jobs, ensuring you have coverage for all of your needs.
As a policyholder, you can manage your account and submit claims online, and customer support is available via phone or email.
Unfortunately, Hiscox isn’t available in Alaska, and some of its coverage options may be issued by partner insurers.
Best Coverage for Mid-Sized and Large Companies: Nationwide
Why we chose this: Nationwide has additional coverage options for businesses that some other insurers don’t provide. And while other companies only cater to small businesses, Nationwide has business insurance policies for mid-sized and large companies.
- Additional coverages available for crime, cyber liability and more
- Customers have access to loss control and risk management resources
- Offers insurance for larger businesses
- Online quotes not available
- Not all business types are eligible for coverage
- Customer service dependent on local agent
Nationwide has a range of business insurance products that go above and beyond the normal offerings. Insurance options include cyber protection, property, workers’ comp, business income insurance, general liability coverage, commercial umbrella, inland marine insurance and builder’s risk insurance.
As a Nationwide commercial insurance customer, you have access to loss control and risk management tools and resources, including a team of professionals — fire protection specialists, mechanical and construction engineers, industrial hygienists, etc. — that can provide their expertise.
Online quotes aren’t available, and you’ll have to work with a local agent to purchase a policy. Since customer service is largely dependent on the agents near you, your experience may differ from that of other business owners.
Best Business Insurance Marketplace: CyberPolicy
Why we chose it: With CyberPolicy, you can fill out one simple form and get quotes from leading business insurance companies. Coverage options start at just $10 per month, and your policy can start in as little as 24 hours.
- Partners with leading business insurance companies
- Multiple coverage options
- Makes it easy to comparison shop
- Doesn't work with all insurers
- Plan options may differ by state
- Account information must be updated over the phone
CyberPolicy is an insurance marketplace. It partners with leading insurers like BiBerk, Chubb, Hiscox, Liberty Mutual and Nationwide to connect customers with business and cyber insurance.
You can get quotes and purchase coverage online. Business insurance options include general liability, commercial auto, workers’ compensation, professional liability, cyber insurance and more.
Because CyberPolicy doesn’t issue insurance policies, you have to work with the insurer underwriting your policy if you have any questions or need to file a claim. And available options may vary based on your location.
Business Insurance FAQ
What is business insurance?
Business insurance is a broad term, but most business owners will need at least these four types of coverage:
- • Business property insurance: If your business property — such as your office space or machinery — is damaged due to a fire or theft, property insurance will help you recover and may even give you operating funds to keep the business going.
- • Business liability insurance: If your business is involved in a lawsuit, a general liability policy pays for any damages you're liable for and legal fees. This coverage may also be known as casualty insurance.
- • Commercial vehicle coverage: If you have a vehicle that is used for your business, personal auto policies won't cover it. You need a commercial vehicle policy to pay for property damage or bodily injuries that may occur.
- • Workers' compensation: Besides Texas, all states require employers to have workers compensation insurance once they have a certain number of employees on staff. Workers' compensation pays workers a portion of their wages if they're injured while working.
Depending on the nature of your business, you may need specialized coverage, such as:
- • Umbrella insurance: If you have a significant amount of assets or are at increased risk of litigation, getting an umbrella policy could be a good idea. Business umbrella policies provide additional liability coverage.
- • Specialized liability: Depending on the type of business you have, you may need specialized liability coverage, such as an errors and omissions policy.
How much is business insurance?
Business insurance costs vary based on several factors, such as the type of business you run, its size, your location and the type of coverage you choose.
According to Insureon, small business owners can expect the following costs:
| Type of Coverage | Median Premiums |
| Business Owners Policy | $53 per month |
| Commercial Umbrella | $75 per month |
| General Liability | $42 per month |
| Professional Liability | $59 per month |
| Workers' Compensation | $47 per month |
What is hazard insurance for businesses?
What does business insurance cover?
What business insurance covers is dependent on the type of business insurance policy you buy. Many people that own a microbusiness — generally with 10 employees or less — opt for business owner's policies that combine general liability and property protection into one policy.
If you have more extensive business needs, you may need to buy additional insurance, such as commercial auto insurance or an umbrella liability policy.
What is umbrella insurance for business?
Business umbrella insurance provides coverage above and beyond your other liability protection. An umbrella policy can protect you against unusually high losses in cases of litigation from a defective product, a hazard at your store, or damage to a customer's property.
Is business insurance tax deductible?
If you own a business, your commercial insurance premiums may be tax-deductible. Common forms of business insurance that are tax-deductible include:
- • Commercial property insurance
- • Professional liability insurance
- • General liability insurance
- • Workers' compensation insurance
How We Chose the Best Business Insurance Companies
To identify the best business insurance providers of 2022, we researched 23 leading companies in the insurance industry. We evaluated each company based on their available coverages, optional riders, customer satisfaction and financial strength ratings.
