Best Small Business Insurance March 2023

If you are a business owner, you probably need some form of insurance to cover your work. Whether you have a fleet of vehicles to insure or simply need liability coverage for freelancing, having the right coverage for your business can be a lifesaver if you ever face a lawsuit, theft, disaster or other unexpected events .

Getting the right coverage can help you make sure you’ll be able to handle whatever comes your way in business. Ahead, CNBC Select reviews the best small business insurance companies to consider to protect your business. (Read our methodology for more information on how we choose the best business insurance companies.)

Nationwide’s business insurance offers customers a wide range of business coverage options across a variety of industries with the financial strength of a major insurer. It is rated third in customer satisfaction for small business insurance and has an A+ rating from AM Best for financial stability.

Next Insurance brings the business insurance experience into the modern era with online quotes and claims, and a mobile app lets you access your policy documents from your phone. It offers many different types of coverage that can be tailored to the needs of independent contractors and the self-employed.

Hartford has over 1 million small business customers and has been in business for over 200 years. It’s easy to estimate how much you’ll pay with both online quotes and average annual premiums for several types of coverage listed on their website.

Chubb offers a number of policies that can be tailored for mid-sized businesses with up to $30 million in revenue. Working with businesses in all industries and offering dozens of types of coverage, Chubb business insurance can meet your company’s specific needs. Chubb ranked second in customer satisfaction in JD Power’s Small Business Insurance Customer Satisfaction Survey.

State Farm was JD Power’s top pick for small business insurance customer satisfaction, scoring 856 out of 1,000. In addition, the company earned an A++ rating from AM Best for financial stability, despite having an above-average complaint index through the National Association of Insurance Commissioners (NAIC).

Travelers is rated A++ for financial stability by AM Best and has a very low complaint index according to the NAIC. Its workers compensation coverage stands out with unique tools, including TravPay, which can help streamline workers compensation by linking payroll to your policy. And in the case of a worker’s compensation claim, the TravComp feature can help streamline the process.

Progressive is one of the largest commercial auto insurers by market share according to the NAIC. In addition to its commercial motor insurance, it offers a range of other business covers and has a strong financial strength rating with a below average complaint index score.

Business insurance covers businesses against financial losses related to unexpected events, such as property damage, lawsuits, property damage, theft, personal injury, and more. While there are many different policies that cover specific situations and scenarios, one of the most popular types of business insurance coverage is the business owner’s policy (BOP).

BOP combines general liability, commercial property and business interruption insurance into one policy. Covered property usually protects the company’s property from things like fire or theft. Liability coverage can protect your business from claims for bodily injury or defective products, such as if someone slips and falls at your place of work. Business interruption insurance can cover losses if your business is damaged in a disaster.

While a business owner’s policy is the primary type of business insurance, there are a number of other coverages available, including:

• Worker’s Compensation: Protects your business from employee workplace illness or injury. Often required for businesses with employees, but may vary by state.
• Professional Responsibility: Covers negligence and misrepresentations not covered by general liability insurance. It is sometimes also called errors and omissions insurance or E&O insurance.
• Commercial Auto Insurance: It covers any cars or vehicles your business owns.

There are several reasons to have business insurance. First, anything can happen when you’re in business, from lawsuits to natural disasters. Having a business insurance policy can help keep your business afloat if you encounter any of these obstacles.

Small business insurance may be required in some cases. In many states, businesses with employees are required to have workers’ compensation insurance.

Whether or not liability insurance is required will depend on the type of work you do and where your business operates.

But that doesn’t change the fact that it can be useful to have. If you work where someone could potentially sue you for professional negligence or for injuries or damages, liability insurance can help cover the costs. According to The Zebra, an insurance comparison site, there are about 12 million contract lawsuits filed against small businesses annually, with the average liability claim costing about $54,000. A small business liability policy can help cover these costs.

Business insurance can help your business stay afloat no matter what comes your way. Evaluating your options based on customer satisfaction, financial strength, and the types of insurance sold can help you find the best fit for your needs.

To find the best business insurance companies, CNBC Select collected hundreds of data points on more than a dozen companies that offer business insurance.

When choosing the best business insurance companies, we looked at customer satisfaction ratings from the JD Power Small Business Insurance Customer Satisfaction Survey. We also collected data from AM Best’s Financial Strength Ratings, which measure an insurance company’s financial ability to pay debts. We also considered complaint index scores from the National Association of Insurance Commissioners. Finally, we looked at the variety of industries insured and the number of types of coverage sold.

After looking at the features above, we’ve sorted the best business insurance companies by best overall, best for small businesses, best for midsize businesses, best for independent contractors, best for customer satisfaction , the best for workers’ compensation coverage and the best for commercial auto coverage.

Catch up on Select’s in-depth coverage of personal finance, technique and tools, wellness and more, and follow us Facebook, Instagram and Twitter to keep up with the times.