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5 Best Business Insurance Companies
By Kat Tretina MONEY RESEARCH COLLECTIVE
Whether you are self-employed, own a startup or have an established business with dozens of employees, you likely need business insurance to protect your company and finances.
Business insurance provides coverage for your property, but it can also protect you against liabilities — one of the biggest risks you may face as a business owner. According to the Small Business Administration, between 36% and 53% of small businesses are involved each year in litigation, and legal costs range from $3,000 to a staggering $150,000.
To help you find the right business insurance coverage, we researched and evaluated leading commercial insurers and identified the top seven best business insurance companies based on their available coverages, customer satisfaction ratings and financial stability.
Our Top Picks for Business Insurance
- Best Overall: State Farm
- Best for Customer Satisfaction: Allstate
- Best for Freelancers and Independent Contractors: Hiscox
- Best for Mid-Sized and Large Companies: Nationwide
- Best Business Insurance Marketplace: CyberPolicy
Best Business Insurance Reviews
Why we chose it: State Farm is our choice as the best overall provider of business insurance policies because it offers a wide range of coverage options, including commercial liability, builders risk insurance, professional liability coverage and workers’ compensation. It even offers coverage to not-for-profit organizations whose insurance needs may be different than those of for-profit enterprises.
Those looking for small business insurance will find State Farm caters to over 300 professions — from baker to psychologist or painter. Those with mid or large-sized companies, however, may find its coverage insufficient for their needs.
State Farm is highly rated in terms of customer satisfaction. In fact, it was J.D. Power’s second choice in its 2021 U.S. Small Business Commercial Insurance Study. State Farm also has an A++ (superior) rating from AM Best for financial stability, the highest possible rating.
Customer service is a mixed bag, though. On the upside, State Farm’s sizable army of insurance agents means you shouldn’t be far from face-to-face help, perhaps even in your own community. However, insurance can only be purchased through an agent, so you can’t get a quote for State Farm commercial insurance online. And the quality of your experience largely depends on the caliber of your local agent.
Why we chose it: Allstate was the top-ranked company in J.D. Power’s 2021 U.S. Small Business Commercial Insurance Study, which evaluated and ranked 10 leading companies on interaction, policy offerings, price, billing and claims.
Allstate is a leading insurance carrier. Beyond the personal auto and homeowners policies it’s known for, it also offers multiple options for business owners. Allstate customers can purchase commercial auto, property and liability coverage. And it offers a variety of optional add-ons you can purchase to customize your coverage, including home-based business insurance and cyber-attack protection.
Allstate does offer online quotes, unlike some other insurers with an extensive network of agents. However, even if you begin your shopping online, the policy must be finalized with an agent. Also, Allstate won’t insure all business types and, depending on your business, it may refer you to a partner insurance company.
Why we chose it: Hiscox offers coverages for freelancers and independent contractors, such as errors & omissions insurance, cyber security and business owner’s policies (BOP) that combine general liability and property coverage.
For freelancers, professional services providers and those that run home-based businesses, Hiscox makes it easy to get business insurance. You can get quotes and purchase coverage online, and your policy can go into effect right away and start protecting your business. Hiscox is also one of the few insurers that offers coverage for those with side gigs rather than full-time jobs, ensuring you have coverage for all of your needs.
As a policyholder, you can manage your account and submit claims online, and customer support is available via phone or email.
Unfortunately, Hiscox isn’t available in Alaska, and some of its coverage options may be issued by partner insurers.
Why we chose this: Nationwide has additional coverage options for businesses that some other insurers don’t provide. And while other companies only cater to small businesses, Nationwide has business insurance policies for mid-sized and large companies.
Nationwide has a range of business insurance products that go above and beyond the normal offerings. Insurance options include cyber protection, property, workers’ comp, business income insurance, general liability coverage, commercial umbrella, inland marine insurance and builder’s risk insurance.
As a Nationwide commercial insurance customer, you have access to loss control and risk management tools and resources, including a team of professionals — fire protection specialists, mechanical and construction engineers, industrial hygienists, etc. — that can provide their expertise.
Online quotes aren’t available, and you’ll have to work with a local agent to purchase a policy. Since customer service is largely dependent on the agents near you, your experience may differ from that of other business owners.
Why we chose it: With CyberPolicy, you can fill out one simple form and get quotes from leading business insurance companies. Coverage options start at just $10 per month, and your policy can start in as little as 24 hours.
CyberPolicy is an insurance marketplace. It partners with leading insurers like BiBerk, Chubb, Hiscox, Liberty Mutual and Nationwide to connect customers with business and cyber insurance.
You can get quotes and purchase coverage online. Business insurance options include general liability, commercial auto, workers’ compensation, professional liability, cyber insurance and more.
Because CyberPolicy doesn’t issue insurance policies, you have to work with the insurer underwriting your policy if you have any questions or need to file a claim. And available options may vary based on your location.
How We Chose the Best Business Insurance Companies
To identify the best business insurance providers of 2022, we researched 23 leading companies in the insurance industry. We evaluated each company based on their available coverages, optional riders, customer satisfaction and financial strength ratings.
