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Business insurance is a form of financial protection that safeguards your business and its resources. It also helps protect you and your employees, as well as your customers, suppliers, and partners. There are many different types of coverage available. These vary depending on the size and nature of your business, the industry in which you operate, and the risks involved. You should consider what you need to protect against before deciding on a policy. We’ve evaluated the best business insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Simply Business provides insurance policies for a range of professions and small businesses.
For more than 200 years, the Hartford Insurance helped over 1 million businesses just like yours.
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.
Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.
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.
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.
It’s important to note that these are minimum coverage requirements, and it’s a good idea to go above and beyond them to ensure your business is completely protected.
All businesses need general liability insurance. This protects against accidents such as slip-and-falls or property damage to others.
Business owners also need to consider cyber liability insurance, which provides protection in the event of data breaches, identity theft, or other financial losses caused by hacking or other cybercrime.
Workers’ compensation insurance is required for any business with employees. This covers medical expenses related to workplace injuries and lost wages for the employee. It can also protect employers from litigation related to those injuries.
If you drive for work, vehicle insurance is a must — and not just for cars. You should insure any motorized vehicle you use for business, including large trucks, motorcycles, or even boats.
We’ll go over the most common policies we see small business owners have, but keep in mind that there are many other policies out there. And certain businesses may require specialized types of coverage.
This is by far the most common policy small business owners have. It protects against liability claims resulting from third-party injuries or property damage caused by your business. Common claims are things like someone slipping and falling on your store premises or a client blaming an error on your work for costing them money. Claims that are not covered by the general liability insurance policy include:
If you manufacture, distribute or sell products, this is another policy you should strongly consider having. It covers bodily injury or property damage that occurs as a result of a product defect (as opposed to a manufacturing defect). So if a person were to buy a defective car part from you, for example, and it caused an accident, this policy would come into play if they sued you for damages.
If you have employees, workers’ compensation insurance is required by law in most states. It covers any medical expenses for an employee who is injured on the job, and it also provides some income to them while they are unable to work. However, it doesn’t cover everything. Here are some of the major exclusions:
Property insurance covers real property as well as other physical assets owned by your company, such as furniture and inventory. In addition to natural disasters, property insurance generally protects against theft and vandalism, too. Commercial Property Liability policies typically exclude a number of potential loss areas. Each insurer can have a different set of exclusions, so it is important that you understand the policy exclusions before buying the coverage. Below are some sample exclusions:
If you use cars or trucks for business purposes, like delivering products or meeting with clients, you’ll need commercial auto insurance instead of personal auto insurance. Commercial auto policies cover vehicles owned by your business as well as those rented by it. They also provide for injuries sustained by employees during accidents that happen while driving for work-related reasons. Some types of accidents, personal injuries, and vehicle damage are excluded from the commercial auto policy, including:
There are several factors that determine the cost of business insurance. Some of those factors are fixed and can’t be changed, like the type of industry you’re in. Others, like your claim history and credit score, can be improved to get lower business insurance quotes.
Here are the main factors that influence how much you’ll pay for business insurance:
This is the biggest factor in how much you’ll pay for business insurance. For example, a construction company will pay a lot more than an accounting firm, since construction is more dangerous and has a higher risk of lawsuits. Businesses with inventory or equipment are also more expensive to insure.
Newer businesses tend to pay more for insurance since they have fewer assets and less experience operating as a company. As your business grows and shows stability, it becomes less risky to insure and your rates will go down.
If you’ve been involved in many claims against your policy or have had a large settlement against you in the past, it will be reflected in your premiums. The good news is that this is one factor that can improve over time if you avoid claims on your policy in the future, which will result in lower premiums down the line.
Choosing the best business insurance often involves finding the right balance between cost and coverage.
Here are some tips to help you get the most bang for your buck:
