Best Business Insurance of December 2021

Bryan Keith

In business, there are always risks. A commonly forgotten piece is business insurance, which can help protect your business from liabilities, theft, property damages, and business interruption. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Who needs business insurance? 

The most common business setup by individuals is an LLC or limited liability company. S Corp or C Corp businesses are used by businesses that typically have more employees, advanced tax write-offs, and interstate employment. A business takes on the liability of being sued or having a bankruptcy, both instances could delve into a business owners’ assets. Business insurance protects the owner and the business assets from major financial losses. 

A variety of different business insurances do exist, not all may be necessary for each owner. 

  • General liability insurance: Basic insurance to cover the business against bodily injury and property damage. 
  • Business owners policy: A combined policy of property and liability, tailored to business owners.
  • Business property insurance: Protects the business from natural disasters and accidents. This insurance covers everything down to inventory. Updating inventory and costs regularly ensures maximum protection. 
  • Cyber insurance: The use of the internet as an avenue for sales puts business at risk to cyber-attacks. This would cover loss due to an attack.
  • Commercial auto insurance: If the business has a vehicle, this insurance covers the potential of a car accident in a business vehicle, like consumer auto insurance. 
  • Errors and omissions: This type of insurance protects against claims of poor poor or negilent actions. 
  • Keyworker insurance: Business owners may take out insurance on key employees if an untimely death were to happen. 
  • Workers’ compensation insurance: This provides medical care or benefits to any employee that suffers any injury or illness during work.
  • Umbrella: A commercial umbrella policy increases your liablity coverage to cover substantial claims.

What does business insurance cover and exclude?

Business insurance provides financial protection due to accidents with employees, customers, or property. Purchasing all the different types of business insurance will cover the new owner with all possible avenues of being sued or bankruptcy. The most important part to remember with business insurance, as with any insurance, is that limitations exist. The higher the coverage, the higher the cost. Basic coverage, while cheaper, may not be the best option if a lawsuit were to happen. Lawsuits start in the tens of thousands and go up from there, purchasing a basic policy may expose the owner.

Each business has its unique value, so understanding that value is essential to find the right amount of coverage. Coverages are limited against damages caused by negligence or fraud.  To this end, classifying the type of business is essential to ensure claims are processed appropriately or an insurance company may deny coverage due to misclassification. Typically, natural disasters are an add-on to coverage policies and should be investigated on a case-by-case basis.

What is the cost of business insurance?

The costs for business insurance will vary by the amount of coverage and the type of insurance. Quotes for business insurance may be procured online and multiple providers may be compared.  The costs for insurance are driven by the following:

  • Industry: The type of industry will change the cost of insurance.  Industries with physical labor will carry a higher cost than a desk job.
  • Selling network: The area where product or labor may travel will determine costs.  Shipping product internationally has additional insurance requirements.
  • Business size: The number of employees and locations will determine the breadth of coverage required.  Multiple facilities and employees will incur higher costs than a single location with minimal employees.

How to choose the best business insurance?

Choosing the best business insurance is based on the size of the company, number of employees, inventory value, and overall company value. 

  • Size of the company: The cash flow, revenue expectations, vehicles, and buildings need to be considered.
  • Employees: The number of employees will change the types of insurances required and may include health benefits
  • Type of insurance: Depending on your business model, you’ll more then general liability insurance. You might have to look into cyber insurance if you deal with a lot of sensitive data.