Whether you’re a sole proprietor or the CEO of a large business, casualty insurance can protect you from financial liability for damage caused by your business or employees.
The most basic form of casualty insurance is workers’ compensation which pays your employees if they get injured on the job. Other valuable insurance includes general liability, protection from errors and omissions, and commercial auto policies. Casualty insurance can also protect businesses from data breaches and damage to valuable documents.
We’ve reviewed the best casualty insurance providers based on reputation, expertise, coverage options, and more. Here are our top picks.
Best Casualty Insurance Companies of 2021
Best Overall : State Farm
Why We Chose It: State Farm offers a wide range of insurance policies for businesses at any stage of their growth. We chose it as the best overall due to its customizable insurance policies and personalized service from a nationwide network of independent agents.
Available in all 50 states
Independent agents understand the needs of small businesses
Offers discounts for bundling with other policies
No online quotes available
Inconsistent customer service
With its beginnings as an auto insurance company in 1922, State Farm has grown to provide personal and business insurance through a network of over 19,000 independent agents. It's our pick as the best casualty insurance provider overall with policies customized to over 300 industries. State Farm has also earned an impressive A++ rating from AM Best.
State Farm offers a wide range of customizable and scalable business insurance policies, including commercial liability umbrella policies, commercial auto, workers’ comp, and more. You can also choose coverage specific to the needs of your industry, including contractors, professional services, retailers, and more.
Examples of industry-specific coverage include food contamination coverage for restaurants; sign damage coverage for retailers; and barber, cosmetologist, and esthetician professional liability insurance for individuals in those professions.
State Farm doesn’t offer quotes online, which means you need to connect with one of its independent contractor agents in your area. While this may seem like an inconvenience, as business owners themselves, State Farm’s agents understand the needs of small businesses and can help you choose the right policies and coverage for your needs. The downside is that the quality of customer service can vary by agent.
Best for Individuals : Hiscox
Why We Chose It: Hiscox specializes in providing common business insurance policies for small businesses and sole proprietors. We chose it as the best for individuals because it offers custom policies based on industry and discounts for business owners who work from home.
Customize policies for 180+ professions
Online claim filing
Discounts for building and working from home
Some policies only available through partners
No coverage available in Alaska
Not a U.S.-based company
Hiscox is a U.K.-based insurance company originally established in 1901 as an underwriter for Lloyd's of London. It offers business insurance tailored to each industry and is our top pick as the best for individuals since it offers discounts for working from home. Hiscox gets an A rating from AM Best for financial stability.
Hiscox offers several standard business insurance policies, including professional liability, errors and omissions, general liability, business owner's insurance, and workers’ compensation. Business owners can get a fast quote by selecting coverage tailored to over 180 industries.
Hiscox is also a great choice for solopreneurs since it offers a 10% discount on its general liability policies for home-based businesses. You can also get a 5% discount for bundling two or more policies.
Because it has offices in 14 countries, Hiscox’s policies will protect you anywhere in the world as long as you file your claim in the United States. (Note that Hiscox does not offer coverage in Alaska.) Although the company administers most of its business policies, its workers’ compensation and commercial auto insurance are offered through a partnership with CyberPolicy.
Best for Small Businesses : Liberty Mutual
Why We Chose It: Liberty Mutual offers comprehensive and affordable business owner's policy (BOP) insurance for up to 1,000 employees with coverage in all 50 states, making it our choice as the best for small businesses.
24-hour claims assistance
File claims online or via the app
Policies available in all 50 states
Policies issued by independent agents
No online quotes available
Liberty Mutual was established in 1912 to provide workers’ compensation insurance. It has since grown to become the sixth-largest property and casualty insurer with over 45,000 employees in 29 countries. It’s our choice as the best for small businesses due to its reasonable-priced BOP insurance and 24-hour claims assistance.
Liberty Mutual offers business insurance policies in all 50 states, including general liability, workers’ compensation, commercial auto, property, and more. It boasts a huge network of contractors who can offer 24/7 claims assistance as well as insurance adjusters across the country who can help respond to claims quickly, even in rural areas.
Liberty Mutual’s business owner policies combine business property and general liability insurance in one policy to offer the coverage most businesses need at a lower cost than if each policy was to be purchased separately. Although Liberty Mutual’s basic BOP offers coverage for businesses with up to 1,000 employees, the company also offers more policy customization options to medium and large businesses.
Because Liberty Mutual operates through independent agents, you will have to contact an agent in your area to get a quote and purchase a policy.
Best for Large Businesses : Nationwide
Why We Chose It: Nationwide is a leading insurance provider that offers simple and straightforward business insurance policies that cover all the essentials. We chose it as the best for large businesses because it offers a wide range of business insurance policies as well as BOP insurance for high-revenue businesses.
Wide range of business policies
Equipment breakdown coverage included in BOP
BOP coverage for high-revenue businesses
No coverage available in Alaska or Hawaii
High number of customer complaints
Nationwide was originally founded as an auto insurance company in 1926. Today they offer a variety of personal and business insurance policies as well as mutual funds, retirement plans, and more. It’s our pick as the best for large businesses because it offers cost-effective BOP insurance for businesses earning up to $5 million. Nationwide also gets an A+ rating from AM Best.
Nationwide offers the essential policies most small and large businesses need, including general liability, BOP workers’ compensation, professional liability, and commercial auto. The company’s BOP includes equipment breakdown and covers businesses with up to $5 million in revenue, unlike other companies that set their limit at $1 million.
Nationwide can also tailor its policies to your type of business, offering specific protections for high-risk businesses. For instance, retailers can take advantage of employee dishonesty coverage while wholesalers and distributors can also get coverage for loss of goods in transit.
Note that Nationwide does not offer business policies in Alaska or Hawaii.
Best for Commercial Auto : Progressive
Why We Chose It: Although Progressive Commercial offers a variety of business insurance policies, it specializes in commercial auto insurance with over one million vehicles covered. We chose it as the best for commercial auto due to its long history in the industry and policy bundling discounts.
Online quotes available
Discounts for bundling with business policies
Coverage available in all 50 states
Fewer customization options than other providers
Some policies offered through third parties
Founded in 1937, Progressive was the first auto insurance company to let customers pay their policy in installments. Today it is a leading provider of personal and commercial insurance, covering one million commercial vehicles nationwide. It’s our top pick as the best for commercial auto due to its industry expertise, 24/7 claims service, and bundling discounts. The company also enjoys an A+ rating from AM Best.
Progressive Commercial covers a wide range of commercial vehicles, including pickup trucks, vans, trailers, snowplows, limos, buses, food trucks, and more. The company does not cover certain specialty vehicles like golf carts, ambulances, and fire trucks and does not offer trailer-only policies.
Progressive Commercial also offers a number of discounts, including discounts for businesses over three years old, with prior insurance, or for customers who’ve had a commercial driver's license (CDL) for at least two years. The company also offers discounts for combining commercial and personal auto insurance and for bundling commercial auto with General Liability or Business Owners Policies.
Progressive Commercial will also adjust your policy rates based on the season to keep your rates low while offering you continuous coverage. While Progressive Commercial doesn’t offer as many policy customization options as other providers, the company does provide 24/7 phone support for its customers.
Best for Professional Services : Travelers
Why We Chose It: Travelers offers a wide range of insurance policies for businesses of any size. It’s our top pick as the best for professional services because it offers specialized BOP insurance tailored to the needs of various professional service industries.
Specialized BOPs for professional services
Coverage in all 50 states
Also available in Canada, Mexico, and the U.K.
No online quotes available
High number of customer complaints
In 1864, Travelers offered its first accident insurance for a premium of just two cents. Today, the company is a leader in personal and business insurance with 13,500 independent agents in the U.S, Canada, the U.K., and Ireland. We chose it as the best for professional services due to its range of BOP insurance add-ons for professional industries. Travelers also boast an impressive A++ rating from AM Best.
Travelers offer a standard variety of business insurance with policies tailored to over 20 industries, including finance, healthcare, manufacturing, technology, education, and more. The company’s global policies satisfy insurance requirements in 120 countries and include general liability, property, commercial auton, and workers’ compensation insurance.
What sets Travelers apart from many other business insurers is its professional liability insurance. These policies can be automatically included or added on to a BOP depending on the level of coverage or purchased as a standalone policy.
Each liability policy provides specific coverage appropriate to a particular professional service. For instance, pet care services can benefit from grooming and boarding liability coverage while financial services can get covered for data breaches and protections for valuable papers and records.
Best for Workers’ Compensation : The Hartford
Why We Chose It: As one of the largest business insurance companies, The Hartford is our choice as the best for worker’s compensation due to its payroll-based pricing, a huge network of healthcare providers, prescription drug coverage, and more.
Pay-as-you go pricing
Most policies can be purchased online
Discounts for bundling policies
Pricing only available by applying
Not available in six states
Originally founded in 1810 as a fire insurance company, The Hartford offers a variety of auto, home, and business insurance policies. The company insures over 1 million businesses and is our pick as the best for workers’ compensation because of its flexible pricing, stop-gap coverage, and a large network of providers. The Hartford earns an A+ rating from AM Best for financial stability.
The Hartford’s workers’ compensation insurance offers generous coverage options to protect both employees and businesses. This includes stop-gap coverage that extends insurance to employees who work in states that require insurance to be purchased from the state. Businesses can also choose pay-as-you-go pricing which bases their premiums on their actual payroll to help manage cash flow.
The Hartford also offers a 10% discount on its workers’ compensation insurance if you bundle it with a BOP. Other benefits of The Hartford’s workers’ compensation insurance include:
- Preferred Medical Provider Network: Employees can access over 1 million providers specializing in treating workplace injuries.
- Prescription Drugs: Employees can use 65,000 U.S. pharmacies to fill prescriptions, typically with no out-of-pocket expenses and mail-order service.
- Needle Stick Reimbursement: Helps pay for initial testing if an employee gets hurt with a needle and can also reimburse them for additional testing.
- Nursed Back to Health Program: Experienced case managers coordinate care and treatment for injured employees, including physical, emotional, and occupational therapies.
The Hartford also lets you purchase workers’ compensation insurance through its website, but you’ll have to enter your personal and business information to apply. The company doesn’t offer policies in Alaska, Hawaii, North Dakota, Ohio, Washington, or Wyoming.
|Insurer||What We Picked It For||Notable Features|
|State Farm||Best Overall||Customizable insurance policies and personalized service|
|Hiscox||Best for Individuals||Discounts for home-based businesses|
|Liberty Mutual||Best for Small Businesses||24-hour claims assistance and affordable BOPs|
|Nationwide||Best for Large Businesses||BOP coverage for high-revenue businesses|
|Progressive Commercial||Best for Commercial Auto||24/7 claims and budding discounts|
|Travelers||Best for Professional Services||BOP insurance tailored to professional service industries|
|The Hartford||Best for Workers’ Compensation||Payroll-based pricing and a large network of providers|
Casualty insurance is not a one-size-fits-all solution and varies depending on the industry and needs of each business. Make sure you review the terms and conditions of each policy as well as compare costs, coverage, and other factors before deciding which is best for you.
With that said, State Farm offers the best overall casualty insurance due to its wide range of policies and experienced independent agents who are also business owners.
What Is Casualty Insurance?
Casualty insurance protects your business from damages caused to a third party by your business or employees. This can be anything from an employee who gets injured in your warehouse to a driver hurt in an accident caused by an employee driving your company vehicle.
Casualty insurance is not just one type of insurance, however. Businesses can buy general liability insurance that protects them from a customer or third-party claims, errors and omissions insurance like malpractice and commercial auto insurance that protects your company vehicles.
What Is the Difference Between Casualty Insurance, Property Insurance, and Liability Insurance?
It’s essential to understand the different types of business insurance to ensure that you’re protected from financial loss and liability.
Casualty insurance is a broad category of insurance that generally protects businesses from damages to employees or people outside their business. This can include workers’ compensation, commercial auto insurance, and liability insurance.
As its name implies, property insurance provides a business with financial compensation for property that suffers from damage or theft. It does not offer protection or compensation for personal harm or injury, however.
Liability insurance, on the other hand, protects a business if it is responsible for causing harm or damage to an individual. This can be a customer who slips on a wet floor, a cook who burns himself in a restaurant’s kitchen, or a client given inaccurate information by a tax preparer.
Does Casualty Insurance Include Workers’ Compensation?
Because casualty insurance is a broad category of insurance, workers’ compensation insurance is just one type of casualty insurance policy. Most states require businesses with at least one employee to offer worker’s comp, so it’s important to know the laws in your state.
How Does Casualty Insurance Work?
Casualty insurance protects your business if it’s deemed to have caused harm to an individual, whether an employee (in the case of worker's comp) or a third-party outside of your business.
Your business is deemed liable if it caused harm or injury due to negligence. Failure to put a caution sign on a wet floor in your restaurant could be one example as would a driver of your company vehicle who caused an accident by running a red light.
Any damages caused to an employee or third party are covered by a commercial liability policy. Without one, a business will have to pay the costs which may even include legal fees out of pocket.
Who Should Get Casualty Insurance?
Most businesses should get some type of casualty insurance depending on their industry and risk. For instance, businesses that have a lot of vehicles out in the field should have commercial auto insurance while retailers and restaurants will need general liability insurance to protect themselves if customers are hurt on their premises.
As noted, most states also require businesses to have workers’ compensation insurance if they have at least one employee.
What Does Casualty Insurance Cost?
None of the providers we reviewed would offer a quote online and required speaking directly to an agent for pricing. Because costs can differ by profession, it’s difficult to determine an average estimate, but our research showed that individual policies (like general liability, workers’ compensation, and BOPs) can range from $40 to $70 or more per month.
How We Chose the Best Casualty Insurance
We looked at over a dozen casualty insurance providers for this review. At the top of our list were companies with a long history of insuring businesses and a wide network of agents and adjusters.
We also carefully selected providers based on the policies or business types they specialized in (commercial auto insurance or workers’ compensation, for instance). Financial stability was also an important factor, and our best measure of this was each company’s AM Best rating.
Finally, although we were unable to get accurate pricing quotes for comparison, we did look at companies that offered discounts on specific policies or bundling policies to help small businesses get the most for their money.
All of our top choices offer a variety of policies for multiple industries at affordable costs. They are also available throughout most of the United States.