57% of all small business(1) owners rely on personal savings to start off, but only a quarter of these businesses can independently start off. For many businesses, it is extremely important to get insurance in case their business does suffer from an unfathomable disaster.
What is Small Business Insurance?
Small business insurance is sometimes called commercial insurance(2) because of its ability to protect business assets, property and income.
Any business usually needs three types of insurance coverages(3) that are general liability insurance, business property coverage and workers’ compensation insurance for employees.
There is a limit to how much insurance covers, known as the coverage limit and even small business insurances have these limits. When deciding what sort of insurance to get for your business, do question the agent on how much insurance is for a small business.
(Also Read: Business Insurance 101)
10 Types of Insurance for Small Businesses
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The Hartford: Overall best small business insurance company
Hartford provides the best workers’ compensation and is the second-largest provider of compensation insurance nationwide. Though there is no app for filing claims and the process of applying for insurance is cumbersome, there are discounts for bundling policies and has a wide network.
Pros
- Discounts on bundling policies
- A massive network for providing healthcare to workers
Cons
- Filing for insurance is a big effort
- You might have limited insurance because of $100 per payroll policy
Price
Costs a minimum of $350 per year for general liability and $270 for professional liability per year.
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Nationwide: Best for controlling costs with risk management assistance
Nationwide provides one of the best liability insurances in this list. It has the highest customer satisfaction rating for a good small-time business insurance company and provides industry specialties in many regions. From business property to medical clinics to agricultural businesses, versatility is its biggest plus point.
Pros
- One of the safest options for getting insurance
- Comes with an online platform for getting quotes and claim reporting
Cons
- The agent may be unable to reveal information until after you get the policy
- Their customer service is down the drain
Price
Though prices are not available upfront, you will need to contact their agent to get a better idea. Good communication skills may be required to get better insurance.
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CNA: Best for professional liability insurance
CNA is best known for its property and casualty insurances, but their commercial insurance is something that you should try out. For businesses that involve risk to the person, such as employment of worker-force, CNA may provide the best services.
Pros
- Provides an easy application that returns quick quotes
- Can help create solutions for your business by assessing risks
Cons
- You may need other small business insurance policies because CNA does not cover every liability
- Coverage is not available in all states, and their online presence is scarily diminishable
Price
Similar to Nationwide, you will need to contact an agent to get a better idea.
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Embroker: Best for tech startups with venture capital funding
Most new entrepreneurs tend to get the biggest venture capital funding they can get, without assessing the risks that come with this funding. Embroker is online broker insurance that claims to help tech startups with their funding.
Pros
- Supported by top venture capitalists for inspiring startups
- Top-notch online service with good online customer service
Cons
- Inconsistency in their customer service makes for mixed reviews
- You may have to pay more than what you receive
Price
It is a broker service, so it has no price upfront. However, you may have to pay for the additional fees that their several services charge. Check out their website(4) for more information.
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Liberty Mutual: Best for commercial property insurance
Liberty Mutual is the best commercial property insurance company for small businesses. You will get the basic coverage that caps at $8.5 million in revenue and 1000 employees and comes in two program options, depending on whether your business is hard to cover or in groups.
Pros
- Offers services to more than 400 professions – a considerably versatile insurance company.
- Has some of the best customer service and reviews are excellent
Cons
- Their services such as online transactions are outdated
- You may need to use classic methods such as calling directly to get in contact with the agent
Price
Though there isn’t a fixed price, as it depends on how many things you wish to cover, the prices vary between $200 to $3000 annually.
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Hiscox: Best for microbusinesses and independent contractors
Amazing insurance for microbusinesses and independent contractors that are looking for discounted insurance.
Pros
- Excellent discounts for multiple policies and when bought in groups
- Get reports online
Cons
- Not available in every state: Alaska is an example.
- Difficult to get insurance claims
Price
The minimum price is $350 per year for general liability that scales up to $500, with personal liability starting at $270 per year.
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State Farm: Best overall
Offers the best overall small business insurance coverage for any type of business.
Pros
- Agents available all across the United States and covers almost all states
- Multiple types of endorsements and coverages available
Cons
- Inconsistent reviews and customer service make it a hard-sell
- They are business owners themselves; you know what that means
Price
You need to get a quote from an agent depending on your location.
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Travelers: Best commercial property insurance
Not only is Travelers best for commercial property, but also a great option for workers’ compensation. By getting access to local claims professionals, Travelers offers to-the-point insurance as well as safety resources to ensure employees are safe on the job.
Pros
- Operates outside of the United States as well: in Canada, Mexico and the UK.
- Offers more than 20 industry specializations, making it very versatile too
Price
The price varies depending on what things you want to get insured, so Travelers recommend talking to their agent to get a price quote(5).
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Zurich: Best for antique vehicles
If you are a small-time business that needs insurance for their antique vehicles, fret not! Zurich does cover insurance for a wide range of business projects that can get incredibly specific.
Pros
- An effective option if you become specific about what insurance you want
- Helps cover policies for animal handling and has flexible payment options
Cons
- Doesn’t cover every type of business or car
- Getting replacement cost is more difficult as prices of vehicles fall
Price
There is no fixed price tag on insurance from Zurich, so consider getting a personalized quote(6).
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Chubb: Best for international businesses
Just because you are a small business does not mean that you cannot have international clients or markets. For businesses that are out of the state, Chubb is the best option available.
Pros
- Comes with two insurance packages, one for foreign and one for international businesses.
- Covers a wide variety of liabilities
Cons
- Is considerably more expensive than many other options
- Payment needs to be made every month
Price
There is no single price tag, though a consensus shares that the prices are about 3 to 4 times more expensive than the other options on this list.
(Also Read: 5 Knowledge Tips Before Buying Business Insurance)
Final Thoughts:
We hope that you were able to find the best small business insurance you needed to know. If you have any queries regarding what insurance do you need for a small business, do let us know and we will gladly help.
