You have a home and a vehicle, but do you have insurance coverage for your small business? What if there’s an accident or fire? What if somebody slips on the ice and breaks their leg or gets sick and takes time off work? How can you pay for all of this while new in your venture?
Business insurance is essential for every business. It’s something a lot of small businesses miss out on, leaving them more vulnerable to avoidable business losses and becoming insolvent.
Without insurance coverage, you could end up paying higher rates for your business and lose customers when they have to cancel their orders due to a loss of profits. With the best insurance companies for small businesses, you can access all the coverage you need when you need it.
Basic Insurance Coverage Every Small Business Should Have
In the world of small business insurance, coverage is the name of the game. Without it, your business could potentially be at risk. If you’re unsure what policies are suitable for you, here are some basic insurance coverage options that every small business should have.
Property insurance is a type of liability insurance that provides coverage for your building and its contents. Property insurance protects you against the risk of damage to your building, its contents, and people on the property at the time of the accident. Property insurance can also pay for:
- Replacement cost for damaged or destroyed property
- Relocation expenses if you have to move because of an insured loss and you don’t have enough money to cover replacement costs.
- Losses from vandalism, fire, or theft.
- Legal defense costs if someone sues you because of an accident that happened on your property.
The best way to protect your business from these losses is by purchasing general commercial liability (CGL) coverage from an insurer like Nationwide. CGL policies provide legal protection for bodily injury and property damage during the policy period.
General Liability Insurance
General liability insurance protects your business against lawsuits and other claims from bodily injury or property damage caused by someone else’s negligence or recklessness. The type of policy you purchase depends on the amount of money you want to insure against potential claims, but all general liability policies include a few essential elements:
- Legal defense costs – It covers all your legal expenses in case someone sues your company for any reason.
- Public relations – It covers any damage done to your reputation because of an accident or lawsuit. It also covers any media attention related to an incident with your company.
- Liability limits – It sets how much money your policy will pay out per claim against your business.
- Bodily injury liability – It ensures against injuries resulting from accidents on company property, such as in a parking lot or walkway. It also insures injuries caused by others while using the property, such as employees tripping over an electrical cord.
Workers’ Compensation Insurance
Workers’ compensation insurance is mandatory for all businesses, regardless of size. Workers’ compensation insurance protects employers against claims filed by employees who are hurt while at work. In most cases, insurance companies will pay up to a certain amount for medical treatments and lost wages if an employee is injured.
Commercial Auto Insurance
Commercial auto insurance is a must-have for any business that operates vehicles. Commercial auto insurance protects your business against financial losses resulting from accidents involving your company’s vehicles or employees while operating those vehicles. It may also cover liability if someone is injured on your property or if an employee causes damage during the course of employment.
Top Insurance Companies Small Business Owners Should Acquire Coverage From
Whether you’re a small business owner, sole proprietor, or freelancer, it’s essential to have insurance coverage. The best insurance companies for small businesses offer comprehensive coverage at competitive rates. Here are our top picks for the best small business insurance companies.
The Hartford The Hartford is one of the largest property and casualty insurers in the United States, serving millions of policyholders in all 50 states. The Hartford offers a broad range of products and services, including workers’ compensation insurance, business owner’s policies (BOP), general liability insurance, commercial auto insurance, and more. It’s considered the second leading provider of workers’ compensation insurance in the United States.
The Hartford offers a wide range of rates for their policies, but they also have some of the lowest rates in the industry. It makes them an excellent option for small businesses looking to save money on their insurance premiums.
The BOP cost is $3,135 annually and $261.25 monthly. For Workers’ compensation insurance, the company has set an affordable price of $840 annually or $70 per month. For GLI, you must pay $1,057 annually or $88.08 monthly. The insurance company offers coverage across a variety of industries, including:
- Restaurants and Food
- Business Services
- Wholesalers and Distributors
- Specialized Truck and Equipment
- Personal Care Services
The Hartford has provided insurance solutions to small businesses for over 50 years. They have a long track record of delivering quality products and services at affordable prices with no hidden fees or markups. The Hartford is an A+ rated insurer by A.M. Best.
Nationwide is a solid choice for liability insurance. It has been in business since 1926 and has more than $65 billion in assets under management. Nationwide offers a mix of commercial property, vehicle, workers’ compensation, and general liability policies to fit your needs. It also provides specialties like business interruption and umbrella liability policies for the most complex situations.
Nationwide also has a long history of providing affordable insurance for small and large businesses. Its policyholders include individuals, families, and corporations that have been insured for over 50 years. This makes Nationwide one of the most trusted names in the industry.
It’s easy to see why Nationwide is so popular with small businesses: it offers competitive pricing options, excellent customer service, and an impressive track record of paying claims on time or even early. The company provides liability coverage for businesses of all sizes from small and medium-sized enterprises, including:
- Medical clinics
- Food and Beverage
- Farms and Ranches
- Human services
Nationwide has A++ Superior Rating from AM Best, which is the highest rating in the industry. Ward’s Insurance Review has also recognized the company for having an excellent underwriting record.
State Farm is a leading provider of auto insurance and other financial services. The company provides coverage for more than 50 different types of vehicles, including cars, trucks, and motorcycles. State Farm can also help you with personal property, homeowners’ and renters’ insurance, farm equipment, and more.
State Farm offers a wide range of policies to fit your needs. Whether you need comprehensive coverage for your rental car or liability protection for your company vehicle, State Farm has the right policy for you.
The company also provides business owners with business liability insurance that protects them from lawsuits or damage claims that may arise from their operations. In addition to auto insurance, State Farm offers small businesses several other types of coverage, such as workers’ compensation and group health insurance. The company also offers many unique features that can help your business grow and thrive, including:
- A 24-hour emergency line
- An online portal for doing business with the company
- Flexible pricing options
- The ability to buy commercial auto policies in bulk and at a discount.
State Farm promises to pay claims quickly if they occur, including outside of regular business hours. If you have questions about how long it will take them to settle your claim, contact them at 800-782-8332. The most significant advantage of working with State Farm is they have agents across all states, making it easy for you to reach for any assistance.
Travelers is a leading insurance company that offers risk control, claim, premium audit, and loss prevention services. Since 1853, Travelers has been helping businesses protect their assets and grow by providing reliable and affordable coverage. In fact, the company has been providing professional services to business owners for more than 150 years.
The company has established itself as one of the leading commercial property insurance companies in the United States. Travelers is an excellent choice if you’re looking for the best commercial property insurance company in your area. The insurance pricing plan depends on the industry specialization and operation. No matter your business industry specialization, your business is always at risk; Travelers offer insurance coverage in the industry such as:
- Business and Professional Services
- Equipment Dealers
- Financial Institutions
- Real Estate
- Marine industries.
Travelers offer several different plans that can help you find the right coverage at an affordable price. The company provides insurance solutions such as commercial auto and trucking, general liability, cyber, property, BOP, workers compensation, and more.
AmTrust Financial Services
AmTrust Financial is a leading provider of insurance products and services to small businesses. They offer a wide range of insurance products, including BOP, workers’ compensation, cyber insurance, commercial package, EPLI, general liability, and commercial property.
AmTrust Insurance provides these services directly to independent agents licensed by the state.
AmTrust Financial also offers a variety of other products through its independent agent network. The insurance company has received an A- (Excellent) from AM Best. In addition to insurance solutions, they also offer services such as claims, loss control, premium audit, and a VIP program. Find more resources in the agent marketing library for insights and trends, or visit AmTrust API.
The company has earned a reputation as one of the best insurance providers in the business industry. They offer insurance solutions to sectors such as:
- Offices & Professional Services
- Health Care
- Financial Institutions
Liberty Mutual is an excellent option for small business owners who want to take advantage of the financial protection that an insurance policy offers. The company is considered one of the top insurance companies for BOPs. In addition to giving you peace of mind, Liberty Mutual’s BOP coverage can help protect your business against unexpected expenses.
If something happens to your building or equipment, you’ll be covered if it’s deemed “occurrent” (i.e., not covered by other policies you have in place). The company also offers a wide range of business insurance products, including:
- Commercial auto & fleet
- General liability
- Healthcare liability
- Inland marine
- Management liability
- Mergers & acquisitions
- Professional liability
- Umbrella & excess liability
- Workers compensation
Liberty Mutual also offers mobile app products that allow customers to access their account information on the go. They have endorsed themselves to provide solutions to various industries such as construction, energy, healthcare, manufacturing real estate, wholesale, and private equity, among others.
Liberty mutual helps you control risk by showing you adoptive measures to reduce the risk. Having been in business for over 100 years, they have built a reputation for being one of the best companies in America with excellent customer service.
Progressive is a leading auto insurance provider with comprehensive coverage options. They offer discounts to drivers with safe driving records and accident histories. They also offer discounts to those who maintain good credit scores, have experienced no accidents in the last three years, and have clean driving records. Progressive also offers other different types of business insurance, including:
- Business Owners Policy
- Commercial Auto
- General Liability
- Professional Liability
- Workers’ Compensation
Progressive also has several specialty lines that cater to the needs of small businesses, including property and casualty coverage. Founded in 1937, Progressive has been around for 75 years, making them one of the oldest insurance companies today. Progressive is well known for providing competitively priced auto insurance policies for drivers across all 50 states.
The company’s website is easy to navigate and offers many valuable resources for prospective customers. Progressive’s customer service representatives are available 24 hours a day, seven days a week, to answer policy questions or apply for coverage. Progressive also has an excellent reputation with customers and has earned high ratings from TIC Financial, a leading rating agency in the industry.
If you’re in the market for excellent insurance coverage for your small business, there are many options you can explore, and you cannot choose them at random. Choosing one that offers comprehensive packages at a reasonable price and can understand and meet your specific needs is essential. Whether it’s liability, property, or health insurance you’re looking for, these companies were given top scores for their impressive services. They’ll more than meet your insurance needs as a small business owner.