Best Small Business Insurance April 2023

If you’re a business owner, you probably need some form of insurance to cover your work. Whether you have a fleet of cars to insure or need liability coverage for freelance work, having the right coverage for your business can be a lifeline if you ever face a lawsuit, theft, disaster or other unforeseen event.

Getting the right coverage can help ensure you’ll be able to take on whatever comes your way in business. Ahead, CNBC Select reviews the best small business insurance companies to consider to protect your business. (Read our methodology for more information on how we choose the best business insurance companies.)

Nationwide offers business insurance customers a wide array of business coverage options in a variety of industries with the financial strength of a large insurer. It received the third-highest rating for small business insurance customer satisfaction and an A+ rating from AM Best for financial strength.

Next Insurance brings the business insurance experience into the modern age with online quotes and claims, and a mobile app that lets you access your policy documents from your phone. It offers a variety of coverages that can be tailored to the needs of independent contractors and self-employed individuals.

Hartford has over 1 million small business clients and has been in business for over 200 years. It’s easy to estimate how much you’ll pay with both online quotes and average annual premiums for the different types of coverage listed on their website.

Chubb offers a number of policies that can be tailored to mid-sized businesses with revenues of up to $30 million. Working with businesses in all types of industries and offering dozens of coverage types, Chubb’s business insurance can meet your company’s specific needs. Chubb ranks second for customer satisfaction in JD Power’s Small Business Insurance Customer Satisfaction Survey.

State Farm was JD Power’s top pick for small business insurance customer satisfaction, scoring 856 points out of 1,000. Additionally, the company earned an A++ rating from AM Best for financial strength, though it has an average complaint index through the National Association of Insurance Commissioners (NAIC).

Travelers is rated A++ for financial strength by AM Best, and has a very low Complaints Index score according to the NAIC. Its workers’ compensation coverage stands out with unique tools, including TravPay, which can help streamline workers’ compensation by linking payroll to your policy. And, in the case of a workers’ compensation claim, TravComp features can help streamline the process.

Progressive is the largest commercial auto insurer by market share, according to the NAIC. In addition to its commercial auto insurance, it offers a number of other business coverages and has a strong financial strength rating with a below average complaint index score.

Business insurance covers businesses against financial losses related to unexpected events such as property damage, lawsuits, property damage, theft, personal injury and more. While there are many different policies that cover specific situations and circumstances, one of the most popular types of business insurance coverage is a business owner’s policy (BOP).

A BOP combines general liability, commercial property and business interruption insurance into one policy. Covered property usually protects company property from things like fire or theft. Liability coverage can protect your business against personal injury claims or defective products, such as if someone slips and falls on your business premises. Business interruption insurance can cover losses if your business is damaged by a disaster.

Although a business owner’s policy is the main type of business insurance, there are many other coverages available, including:

• Compensation of employees: Protects your business from employee workplace illness or injury. This is often required for businesses with employees, though can vary by state.
• Professional Liability: Covers negligence and misstatements not covered by general liability insurance. It is also sometimes called errors and omissions insurance, or E&O insurance.
• Commercial Auto Insurance: Covers any car or vehicle in your business.

There are several reasons for having business insurance. First, anything can happen when you’re in business, from lawsuits to natural disasters. Having a business insurance policy can help keep your business afloat if you encounter any of these obstacles.

In some cases, small business insurance may be required. In many states, businesses with employees are required to have workers’ compensation insurance.

Whether you need liability insurance will depend on the type of work you do and where your business operates.

But, that doesn’t change the fact that it can be helpful to have. If you do work where someone could sue you for professional negligence or for injury or damage, liability insurance can help cover costs. According to The Zebra, an insurance comparison site, about 12 million contract lawsuits are filed against small businesses each year, with the average liability lawsuit costing about $54,000. A small business liability policy can help cover those costs.

Business insurance can help keep your business afloat no matter what comes your way. Evaluating your options based on customer satisfaction, financial strength and types of insurance sold can help you find the best fit for your needs.

To find the best business insurance companies, CNBC Select collected hundreds of data points from more than a dozen companies that offer business insurance.

When selecting the best business insurance companies, we looked at customer satisfaction ratings from JD Power’s Small Business Insurance Customer Satisfaction Study. We also compiled data from AM Best’s Financial Strength Ratings, which measure an insurance company’s financial ability to repay debts. We also considered the National Association of Insurance Commissioners Complaint Index rating. Finally, we consider the diversity of insured industries and the number of types of coverage sold.

After considering the features above, we ranked the best business insurance companies by Best Overall, Best for Small Business, Best for Mid-Sized Business, Best for Independent Contractors, Best for Customer Satisfaction, Best for Workers’ Compensation Coverage, and Best for Commercial Vehicles. coverage

Check out Select’s in-depth coverage Personal capital, Technology and equipment, wellness And more, and follow us Facebook, Instagram And Twitter To stay up to date