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In the event of a disaster, small businesses need to have reliable insurance in place. This article gives you a breakdown of the 7 best companies for your business.
The best small business insurance providers provide basic coverages like general liability, as well as a wide selection of optional coverages that many small businesses need. Furthermore, the best organizations may provide low rates and have strong financial ratings, indicating that policyholders can rely on them to fulfill claims.
The following are our top options for small business insurance:
- The Hartford: Best for small businesses generally.
- Hiscox: Best for microbusinesses and independent contractors.
- Nationwide: Best for cost control and risk management support.
- CNA: Best for professional liability insurance.
- Progressive Commercial: Best option for business vehicle insurance.
- Liberty Mutual: Best for business property insurance.
- Embroker: Best for IT firms with venture capital backing.
The Hartford
Because of its capacity to provide small company insurance plans and industry-specific packages with more coverage inclusions than its rivals, The Hartford is our top option. Customers praise the company’s small business lines experts for their service and claims help.
Small Business Protection
Spectrum, The Hartford’s version of a BOP that combines general liability and commercial property into a one, easy policy, provides wide protection for small company owners. Many other insurers charge extra for critical coverages, such as protection of company revenue lost via off-premises activities. Following that, company owners may personalize their BOPs by purchasing endorsements like coverage for a data breach, debris cleanup, and precious documents.
The Hartford provides the following services:
- Compensation for employees
- Automobiles for business
- Liability in the workplace
- Insurance against cybercrime
Costs
The Hartford, like other insurance companies, only gives detailed price information after clients request a quotation. Stretch, Stretch Plus, Super Stretch, and Premier Stretch are the four levels of coverage offered by the company’s BOP endorsements, which were recently revised. Stretch, the most basic level covers the most frequent risks faced by small company owners and often costs about $100 to add to a BOP.
The Hartford is one of the few insurance companies with a lot of positive internet feedback.
Hiscox.
Hiscox specializes in insurance for firms with five or fewer workers, providing a variety of coverage options for over 180 professions and sectors. It stands out, especially for enterprises who operate out of their homes, giving up to 5% savings on BOPs and general liability insurance.
Small Business Protection
Hiscox is a liability insurance specialist. It covers nine sectors and more than 180 professions with general liability and professional liability plans. A BOP is also available, which may be modified with endorsements for hired and non-owned vehicles, employee criminality, and electronic data loss.
Hiscox does offer more basic insurance, such as workers’ compensation and commercial vehicle insurance, but it does not issue such policies. Instead, it works with CyberPolicy, an internet insurance broker, to provide these products to customers.
Costs
Hiscox’s general liability insurance has a minimum premium of $350 per year. When combined with property coverage in a BOP, the yearly minimum premium rises to $500. Professional liability coverage begins at $270 per year.
Hiscox also provides the following services:
- Discounts of up to 5% for home-based enterprises
- Discounts of up to 5% are available when purchasing several policies.
- Monthly payment options are available at no additional cost.
- A 14-day money-back guarantee is included.
Hiscox also provides a number of options to help with policy administration, including certificate of insurance requests and policy information changes.
Nationwide
Nationwide is a property and casualty insurance company that also offers a variety of employee benefits, such as retirement planning and group insurance. However, Nationwide stands out for its safety tools, which include help with company continuity plans, wounded employee return-to-work programs, and fleet safety courses.
Small Business Protection
The basic insurance that small company owners need, including general liability, workers’ compensation, professional liability, and commercial auto, are all available through Nationwide. Its BOP is unusual in that it automatically includes equipment breakdown coverage, which other carriers charge extra for.
Other coverages are available as independent policies or as add-ons to existing policies for business owners. These are some of them:
When a company’s income exceeds $1 million, most insurers deem it ineligible for BOPs. BOPs, on the other hand, are available for enterprises with somewhat larger annual sales, up to $5 million.
Costs
On its website, Nationwide does not disclose pricing information for small business insurance. It does, however, promise to provide a variety of payment choices. Small company owners may also save money on a variety of safety-related services, such as:
- Checks for criminal records
- Testing for drugs
- Online safety is important.
- An alarm system that may be carried around
- Safety of the fleet
- Suppression systems for kitchen fires
- First-aid materials
- Employee education
While these services will not reduce the cost of company insurance, they may help you prevent claims, lowering rates.
If customer service is important to you, Nationwide may be the right carrier for you.
CNA
CNA, being one of the major property and casualty insurers in the United States, provides a wide variety of coverage to small businesses and is a leading source of professional liability insurance. Business owners who are vulnerable to negligence lawsuits should review CNA Connect, the company’s best-of-breed policy. It combines general liability and property coverage with a special professional liability endorsement.
Small Business Protection
CNA specializes in business insurance and is the industry leader in professional liability, often known as errors and omissions insurance (E&O). On its BOP, the business offers a professional liability endorsement for 16 occupations, including dental lab technicians, computer programmers, and photographers.
CNA also provides a list of 12 rules for small enterprises, including several that are less frequent, such as:
- Commercial crime and fidelity
- Liability insurance for employment practices (EPLI)
- A maritime environment
- Liability of the management
CNA is one of the few insurers that can provide these coverages to small company owners. Its BOP contains $10,000 in EPLI limitations by default.
Costs
On its website, CNA does not provide premium information or discount chances. CNA Connect, the company’s business operations platform, does, however, enable policyholders to minimize total expenses by dropping superfluous coverages or raising deductibles.
Progressive Commercial
While Progressive Commercial provides a few basic small business products, its commercial car coverage is its strongest suit. Progressive Commercial offers coverage for commercial vehicles like cars, trucks, limousines, buses, and trailers. In addition, the organization offers the most comprehensive selection of commercial car endorsements for tailoring your policy.
Small Business Protection
Progressive Commercial is the nation’s largest supplier of commercial vehicle insurance, with coverage ranging from automobiles to semis, but it also provides extra plans via the Progressive Advantage Business Program. These policies, which include most of the fundamental business insurance products including BOPs and professional liability insurance, are written by third-party insurers.
Costs
Progressive Commercial’s annual average premiums include:
- $2,208 for a commercial vehicle
- Depending on the kind of vehicle and how it is utilized, the price ranges from $9,540 to $11,172.
- $552 in professional liability
- $1,020 in workers’ compensation
Progressive Commercial gives qualifying clients nine discounts, including:
- Keeping insurance up to date.
- Having a commercial driver’s license.
- Having been in operation for more than three years
- EFT (Electronic Fund Transfer)
- Make a one-time payment for your whole bill.
Liberty Mutual
Liberty Mutual has over a century of expertise working with companies of all sizes and kinds. It uses its vast knowledge and solid financial position to provide commercial property insurance with exceptional coverage levels. For example, its BOP covers electronic data, staff tools, and employee dishonesty up to $25,000 in coverage.
Small Business Protection
Liberty Mutual offers the fundamental coverage kinds that small businesses need, including a business owner’s policy (BOP) with a ceiling of $8.5 million in sales and 1,000 workers, as well as equipment breakdown coverage.
Midsized firms with more sophisticated needs might choose commercial package insurance with additional choices, letting them to better customize their coverage.
Liberty Mutual also offers two distinct programs:
- Scrap metal merchants, senior residential care institutions, and sports and fitness businesses are examples of hard-to-cover risks covered by specialty programs.
- Group plan: Coverage for firms that join together to acquire better plans and prices (only offered in the Northwest)
Costs
The cost of Liberty Mutual coverage varies based on a number of variables. Most firms, on the other hand, should anticipate spending between $200 and $3,000 per year in premiums. When opposed to buying individual policies, combining different coverage types in a BOP saves money.
Embroker
Embroker began as an online broker, and it is now ranked among the finest business insurance brokers on our list. It has since created a few exclusive solutions to meet the insurance requirements of startups. Embroker has an advantage with quick apps because of its collaboration with top-rated carriers and internal development. Tech businesses may be able to get management liability insurance in as little as a week, compared to weeks with conventional providers.
Small Business Protection
Embroker offers a wide range of commercial insurance products, but it specializes in startups, particularly those in highly regulated areas like technology and marijuana. Embrokers’ exclusive management liability coverage is available to IT enterprises in particular, and venture capital-backed organizations may participate in its digital Startup Program, which bundles important management liability coverages.
Embroker, unlike many other business insurance brokers, also provides key person insurance, health and employee benefits, and contractor-controlled insurance plans (CCIPs).
Costs
Embroker may demand extra fees for its services since it is a broker. However, the firm also provides a risk assessment that assists business owners in identifying areas where they may save money on premiums. By joining Embroker’s Venture Program, startups backed by venture capital companies may receive a premium credit of up to 25%.
How We Decided on the Best Small Business Insurance
Our analysis began with the two resources that most small company entrepreneurs lack: time and money. Is the firm able to provide you with all of the coverage you want in a timely and cost-effective manner? However, we wanted to think about value, so we looked for things like exceptional customer service and online claims filing.
The financial soundness of the carrier is a crucial factor to consider when looking for small business insurance. This ensures that if you ever need to submit a claim, the firm will be able to cover it.
Conclusion
We examined essential characteristics in our search for the top small business insurance carriers, such as countrywide availability, customized coverage, reasonable price, and positive ratings. When selecting a provider for your small company, be sure that it is familiar with your sector and can give the greatest protection against your main risks.
The Hartford makes it simple to pick a policy that is both inexpensive and comprehensive. Its team of professionals creates tailored coverage solutions to fit your specific requirements.
