Modified:2022-09-10  Published:2022-09-08  Views: 206
Author: editor
Published in: Insurance
10 Companies To Trust When You Need A Small Business Insurance

Accidents are inevitable, regardless of your company size. No matter if you own a small business or a big corporate, accidents are something you need to be prepared for. And purchasing insurance is the best possible way of being protected against the unexpected situations. Leaving situations vulnerable means pushing your business towards destruction.  

In this 21st century the world has witnessed the rise of a ton of small businesses. These small businesses play a huge role in advancing the economy of a nation. However, there are a number of risks that the small business owners need to keep in mind in order to continue their business without having much interruption. Purchasing a business insurance plays a huge roll in the course of risk management when you are a small business owner. However, choosing the right insurance service provider can be quite confusing as there are a good number of options available in the US. This article has an analysis on the 10 best companies to offer the best small business insurance policies in US, which will be helping you with your decision.

Important coverage options for a small business

The coverage options along with the annual premium of the insurance depends on the size of the business as well as the type of the business. However, there are some of the common coverage options that are needed regardless of the size and type of the business. The coverage types are provided below:

  • General liability, this type of coverage is the most basic one that provides you with a payable amount when your business face liability claims like property damage and liability claims.
  • Workers compensation insurance, this type of coverage compensates your workers when they get hurt while working for you. Being ill and injured during their job a common factor and it is important for you to protect your works as well as yourself from troubles.
  • Errors & Omission insurance, this insurance policy helps you in protecting yourself from the legal factors when a customer press charges on you for your professional negligence, malpractice and malpresentation. Those who manages their businesses in a specialized field, this is a must for you.
  • Commercial auto insurance, this coverage helps you in protecting the vehicles that you use for your business. It is needed to remember that the personal auto insurance will not be covering your business vehicles, hence, purchasing this insurance is important.
  • Commercial property insurance, this insurance property covers the physical property owned by your small business. This coverage options covers the property in the case of perils and other threats.
  • Inland marine insurance, this policy protects the property of your small business while those are being transported.
  • Cyber liability insurance, this coverage protects you in the case of data loss or hacked computer system.

Factors that are covered by small business insurance

There are some of the coverages, which directly comes under a standard business insurance. Those factors are discussed below:

General liability

General liability stands for all the common issues that your small business can face, starting from bodily injury and third-party property damage and ending at the damage of reputation. Moreover, if there is a reputation damage for the course of slander or copyright infringement, your insurance provider will be paying for the legal defense fees. This needs to be noted that general liability policies do not pay you rather pay others on your behalf.

Workers compensation

Having employees sick or injured because of their job can be quite bothersome if you do not own a workers compensation insurance. These policies cover the medical bills, income compensation, physical therapy and more for your sick employees. Some of the companies even offer death benefits. With the inclusion of workers compensation insurance in your small business policy helps you in retaining your employees’ trust on you while staying away from any legal issues regarding the same.

Commercial property

Just as the name suggests, commercial property insurance covers for the physical property owned by your business. These items include computers, desks, chairs, supplies, business inventory, business records and more. Some of the policies with higher annual premiums can also cover the business building or the office.

Insurance for small businesses

Factors that are not covered by small business insurance

Just as the covered factors, there are some of the factors which are not covered by the insurance policy. You need to keep these factors in mind before proceeding with purchasing any kind of insurance for small business. The uncovered factors are provided below:

  • Your small business insurance policies will not be covering for flood damages. You will need to purchase a separate commercial flood policy for that.
  • The insurance policies will not be covering for your wrongful terminations. An employment practices liability policy is required for that.
  • There is no mercy shown for the intentional acts as well. The fraudulent acts are eliminated from the list of coverages too.

Business Owners Policy (BOP)

Business owners policy can be considered as an integrated part of the small business insurance. small business policies and business owner policies are quite similar. Both of the mentioned insurances include different types of policies under a single name. The policies are capable of most of the security options to the business owners in order to protect their business in a time of need. If you own both of BOP and small business insurance, then you can combine the coverages together and save on the annual premium.

Average cost of small business insurance

The average cost of the insurance that you pay for your small business varies based on the different aspects associated with your company. Mostly the average cost depends on the industry in which your company is operating in, the location of your company, and the coverage types that you have chosen for protecting your company. You can always add different additional coverage to your existing plans for ensuring extra security. Moreover, if you are choosing higher coverage limits, extra endorsements and lower deductible then your policy is most likely to have a higher annual premium.

small business insurance

10 best small business insurance companies

Here we present the top 10 best companies to provide with the most beneficial business insurance policies to the business owners. The pros and cons will be mentioned in the analysis for helping you out in determining the best service provider for you.

1. State Farm

Pros Cons
  • A vast network of agents, hence, easily available.
  • Varied options available for coverages, endorsements and add-ons. An option of in-home business is available as well.
  • The increment for general liability is quite high, which is $1 million. This amount is not offered by most of the companies.
  • Since the company manages its operations via agents, there can issues regarding customer service.
  • Some of the agents can appear to be unable to write across state lines.
 

 

State farm has been chosen as the best overall company to offer beneficial small business insurance policies to the business holders. The company has more than 100 products, which include commercial insurance as one of the biggest parts. State Farm was capable of acquiring an A++ rating for financial stability, which ensuring that the company is capable of paying the claims without having to face many issues. The company’s well-designed insurance policies ensure that the coverages match with the most common type of disasters based on a specific industry. This is certainly beneficial for the business owners as they do not have to browse through the coverage options investing their times. There are also a number of discounts available to grab, such as the discounts for bundling up the insurance policies with one another. However, the discounts base on the coverage types that you are choosing for bundling. As every State Farm agency is owned independently, the agents understand the requirements for a small business, since they are small business owners themselves.

2. Hiscox

Pros Cons
  • The policies of Hiscox are designed basing on the needs of small businesses.
  • The company provides its service in almost all over the US, which means the services are easily available.
  • The parent company of Hiscox is not US based.
  • There are only nine physical offices available in the nerite US.  
 

  

Hiscox is one of the very few companies to include uncommon businesses in its business insurance program. It provides its insurance services to almost 180+ different industries, which include salons, janitors, acupuncturists, fitness instructors and more. The liability coverage limit of the company ends on $2 million, which is certainly very worthwhile for the high-risk industries. Hiscox sells its small business insurance policies as a line-up of their core business policy products, which include almost every policy that a business holder would need. Moreover, the company also writes business insurance policies sold by GEICO.

3. Nationwide

Pros Cons
  • Nationwide offers a unique feature of investment services.
  • The company has an A++ rating issued by AM Best.  
  • It specializes in 14 different industries.
  • The coverage options are not available in Alaska and Hawaii
 

 

The biggest feature of the company and its provided business insurance is that it specializes in 14 different industries. These industries include retailers, medical clinics, farms, food, and beverages and many more. The varied options that one can find in the business insurance policy of Nationwide include, commercial auto insurance, EPLI, BOP, equipment breakdown coverage and as well as the umbrella insurance.

4. The Hartford

Pros Cons
  • The company can be the best choice for the Connecticut residents.
  • It has acquired an A+ rating from the AM Best.
  • 20+ industry specialization.
  • The number of complaints associated with this company has an unexpected amount.  
 

 

The company offers amazing add-on coverage options that can be added with general liability options. These add-on coverages include data breach coverage, business income coverage, professional liability coverage, commercial flood coverage, commercial umbrella coverage and many more. The list of the company contains 20 specialized industry, such as pet groomers, restaurants, publishing, printing, and arborists. By considering the offers of this company you can gain some policy holder’s benefits. These benefits are mostly associated with the health care programs. You can gain the access to the company’s preferred medical provider network. Nursed back to health program is included in the benefits as well. Prescription drug features are another beneficial factor to be acquired by the policyholders.

5. Travelers  

Pros Cons
  • 25+ industry specialization
  • A++ rating acquired from AM Best
  • Second most preferred commercial property insurer by insurance premium.
  • Features and prices of the company varies a lot based on the industry and their operations.
 

 

Travelers has implemented innovation in its coverage options and tailored some suitable policies for each industry. The company provides specialized services for more than 25 industries, which include retail, public entities, manufacturing, construction, transportation and more. Travelers has been recognised as the number six writer for commercial property insurance by the Insurance Information Institute.

best insurance programs for small businesses

6. Liberty Mutual  

Pros Cons
  • Availability of 24/7 claim assistance
  • Claiming process is easy and fast with the help of well-performing application and website.
  • The policies are often served by independent agents.
 

 

The bundling options that are offered by Liberty Mutual is certainly the best in the industry. The combination of different types of insurance policies under a single business owner policy makes it one of the most flexible companies for purchasing insurance. the assistance of the website and application makes the service even more promising. It also offers service for 12 specialized industries including healthcare, wholesale, and real estate. You can also go for 24 hours claim service through the company’s nationwide referral network.

7. Progressive

Pros Cons
  • Availability of bundling discounts
  • Insurance service available for all the 50 states of the US.
  • The discount options vary from state to state
 

 

Progressive offer a bundling discount when you bundle up your commercial auto insurance with your general liability coverage or your BOP. Moreover, if you pay the annual premium in full upfront then you can save up to 15%. The company has specialized solutions for 62 industries including painters, mechanics, salons, gym, yoga instructor and many more.

The above-mentioned companies are the most preferred ones by the business owners of the US. However, there are three come companies that we have added to our list because of their contribution in this specific area of insurance industry.  

8. Allstate

Pros Cons
  • Company has an established reputation in US
  • Financial stability signifies capability of claim fulfillment
  • Discounts and prices may vary from state to state
 

 

9. Farmers  

Pros Cons
  • Low level of customer complaints
  • A+ rating in financial strength
  • Annual premium can be quite high
 

 

10. Clear Blue insurance  

Pros Cons
  • A+ financial strength rating
  • Affordable premium offers
  • Unsatisfactory customer service
 

 

At the ending of the analysis the result shows that State Farm is certainly the best company for small business insurance. However, you can choose the suitable one based on your coverage requirements and industry specialization. If you are looking for an affordable service with a number of discount availability, then The Hartford can be the best choice for you.

Resource list: -

For knowing more about small business insurance in US, you can visit the below provided links.

Investopedia

Forbes Advisor

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