Best Small Business Insurance

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Small business insurance is a general term for insurance policies that protect small businesses from financial losses. Policies can cover things like property, employees, and operations and can also protect against lawsuits. All small businesses need insurance policies tailored to the type, size, and location of their business. Typical small business insurance policies include general liability coverage, business property coverage, and business interruption coverage. 

We compared more than a dozen small business insurance companies before deciding on our top choices. We considered factors such as the types of coverage offered, geographic coverage areas, policy discounts, and more. Keep reading to find out which small business insurance is right for you.

The Best Small Business Insurance for 2022

Best Overall : State Farm



Why We Chose It: State Farm is a reputable company that offers customizable nationwide coverage for small businesses.

What We Like
  • Overall positive reviews

  • Agencies are owned by small business owners

  • Nationwide customizable coverage

What We Don’t Like
  • Large company may feel impersonal

  • Need to speak to an agent for a small business insurance quote

Founded in 1922 in Illinois by a retired farmer, State Farm’s vision was to be a good neighbor and offer competitively priced auto insurance to farmers. It has since expanded to offer many more types of insurance, including small business insurance, property insurance, life insurance, health insurance, landlord insurance, and more. 

Policies are customized for your business and there are policies specifically for certain industries, including retail, restaurants, contractors, and more. Policies typically include a business owner’s policy, commercial auto insurance, surety and fidelity bonds, workers' compensation, and other coverage that you may want to add on. Prices vary greatly and can depend on the location and type of business, the type of coverage requested, and the industry you’re in. 

Although you can get a quote online for some policies, you need to speak to a licensed agent in your state for a small business insurance policy. You can apply with the agent and they can tell you about custom coverage options and applicable discounts including bundling. 

If you have additional questions, you can ask your agent or you can also ask an online virtual assistant any preliminary questions. 

State Farm maintains positive customer reviews and an A++ rating from AM Best.

Best Customizable Coverage : Chubb



Why We Chose It: Chubb offers customizable small business insurance with an easy-to-use website and a positive industry reputation.

What We Like
  • More than 30 business insurance products to choose from

  • Overall positive reviews

  • Website is easily navigable with insurance information displayed in categories

What We Don’t Like
  • No online quotes

  • Not as well known as some of the other insurance companies

Founded in 1882, Chubb is the world’s largest publicly traded casualty and property insurance company. It started as a marine insurance company that provided insurance for ships and cargo and has expanded to an international company with a large division dedicated solely to small business insurance. Policies are offered by industry, category, and services. 

Chubb offers small business insurance for many industries, including agriculture, aerospace, energy, food, law firms, and more. It is the fourth-largest writer of package policies in the U.S., and you can purchase a commercial package for your business that includes flexible property and liability insurance in one policy. You can also choose to purchase policies individually with a bunch of customization options such as added riders and umbrella coverage. 

Additional types of coverage include technology exposure coverage, equipment breakdown, and global casualty coverage, as well as insurance for valuables, cyber insurance, health insurance, flood insurance, and more.

You can search the website to find an independent commercial insurance agent in the area where your business is located and you can apply for coverage with the agent, not online. However, once you purchase your policy, you can manage it online and file a claim online. 

Your agent will help you select the best policy for your small business. Pricing varies depending on the policy you chose and the type of coverage.

Best Workers' Compensation Insurance : The Hartford

The Hartford

 The Hartford

Why We Chose It: The Hartford has significant experience with workers' compensation coverage, has more than one million small business customers, and offers online quotes.

What We Like
  • Eight-minute online quote

  • Reputable company with over a century of insurance experience

  • Second-largest provider of workers' compensation insurance

What We Don’t Like
  • Some customers complain about a lengthy application process

  • Claims can’t be filed on the app at the moment

The Hartford was founded in 1810 as a fire insurance company and then branched out to offer many other types of insurance and financial products and services. In addition to workers’ compensation insurance, The Hartford also offers mutual funds, employee benefits, auto insurance, homeowners insurance, renters insurance, and different types of business insurance. 

The Hartford offers small business insurance to a variety of different industries, and you can search the site by industry or by the type of coverage you need. Some industries that the company covers include beauty shops, consultants, photographers, retail stores, and more. It offers many coverage options, and policy prices vary greatly, but the typical general liability policy is $500 annually. Keep in mind that add-ons cost extra and additional coverage options such as workers' compensation also cost more. 

Unlike some of the other companies on our list, you can get an online quote for your small business insurance by answering some questions about your business, and The Hartford claims it will only take eight minutes to complete the customized quote. 

The company offers discounts for bundling and discounts for choosing to purchase more than one type of business insurance. Other policyholder benefits include health programs, healthcare provider networks, prescription drug information, and small business resources. 

It offers an appealing workers’ compensation policy that is pay-as-you-go and reflects your payroll, not an estimation. This means that the policy shouldn’t be overfunded or underfunded and is beneficial to employers who offer workers' compensation insurance to employees.

Best Commercial Property Insurance : CoverWallet



Why We Chose It: CoverWallet offers online and over-the-phone commercial property insurance quotes, explanations of policies, and comparison shopping all in one place.

What We Like
  • Advisor dedicated to you and your policy

  • Multiple quotes in one place

  • Online quotes to save time

What We Don’t Like
  • Website can feel a bit overwhelming

  • You’re dealing with multiple companies, so you'll need to research each one

  • Not as much industry experience as some other companies

CoverWallet was founded in 2015 and is an Aon company based in New York. It’s an online marketplace exclusively for businesses to find, understand, and get the business insurance that they need. The company was designed to save small business owners time and money by providing a simple, easy-to-understand site where you can compare multiple policy quotes all online. The site also offers advice on different types of business insurance and how to better understand what you need. 

The company works with small and medium-sized businesses as well as startups in a variety of industries, including manufacturing, nonprofits, real estate, retail, and more. Each insurance policy is affordable and specifically tailored to your business. 

There is a comprehensive commercial property insurance policy offered including details on what this type of coverage is, what it includes, and who needs it. You can purchase this policy separately or as part of a custom package. Commercial property insurance offered by CoverWallet typically includes coverage for natural disasters, equipment breakdown, revenue loss, and construction costs. 

You can apply online or with a dedicated insurance specialist over the phone. You can also make payments, request certificates, and manage your policy from your digital wallet. Costs vary based on several factors including the type of business, coverage chosen, risks, location, and more.

Best Commercial Auto Insurance : Progressive



Why We Chose It: Progressive is an industry leader and the number-one commercial automobile insurer in America.

What We Like
  • Overall positive reviews and A+ rating from AM Best

  • Insures over one million commercial vehicles

  • Nationwide coverage

What We Don’t Like
  • Discounts vary by state

  • Customer service may seem less personal than with a smaller company

Progressive was founded in 1937 to provide affordable auto insurance to all drivers. Since then, the company has branched out and now offers many types of specialty insurance, property insurance, condo insurance, renters insurance, and auto insurance, as well as discounts to policyholders. It offers specially designed insurance for a wide variety of industries including commercial trucks, tow trucks, food trucks, vans, contractors, beauty salons, and more. 

Because it insures the most commercial vehicles in the country, it has experience dealing with small business owners and knows what kind of coverage they need. You can get a quote online or over the phone and you can apply online or over the phone. You can also file a claim anytime on the site. 

The website has helpful information about types of insurance and bundling, as well as a section on the perks policyholders receive, which include rental car discounts and discounts on movers, auto supplies, and even pet products. Prices vary and you can speak to an agent to get a better idea of how much coverage is right for your specific business needs. 

The company is best known for its commercial auto policies, but it also offers additional small business insurance products. Some of these products include general liability insurance, business owner's policies, workers' compensation, and professional liability coverage.

Best for Freelancers and Independent Contractors : Hiscox

Hiscox Real Estate Agent Insurance

Hiscox Real Estate Agent Insurance

Why We Chose It: Hiscox focuses exclusively on small business insurance and offers coverage just for freelancers and independent contractors.

What We Like
  • Insures more than 400,000 small businesses

  • Specializes in small business insurance, so its sole focus is on their needs

  • Over a century of insurance experience

What We Don’t Like
  • Doesn’t offer other types of insurance, so you can’t bundle it with your home or auto

  • Only has 11 offices in the U.S.

Hiscox was founded in 1901 and is an international company based in Bermuda with offices in 13 countries. It doesn’t have offices in all U.S. states but does have offices in New York, Florida, and a few other states. The company does offer coverage in all 50 states. It’s an underwriter at Lloyd’s of London and got its start underwriting marine policies. Today, its sole focus is offering business insurance to businesses of all sizes. 

The company has an offering of small business insurance that is affordably priced and specifically for businesses with less than five employees, making it ideal for freelancers, independent contractors, and businesses that are just starting. It has coverage for side hustles, LLCs, home-based businesses, and over 180 different professions, including fitness, health, marketing, and more. 

You can apply for a quote online or over the phone. You can also manage your policy online and there’s a claim management center so you can file and track your claim anytime. Premium costs vary greatly because there are so many different types and sizes of businesses that they insure. The company offers errors and omissions insurance, general liability coverage, business owner's insurance, workers' compensation, cybersecurity insurance, umbrella coverage, and more. 

The website is easy to navigate and has some extra features, including blogs, profit calculators, business tips, and business insurance 101, which describes common insurance terms.

Final Verdict 

We reviewed a variety of small business insurance providers, including large and well-known companies, lesser-known specialty companies, and a marketplace where you can compare coverage. Each company has its pros and cons, offers different types of coverage, and has varying specialties. Some companies offer multiple discounts, while others have easy-to-use websites, and others are known for their fast and simple claims process. 

Overall, we recommend checking out State Farm for your small business insurance needs. They have dedicated, knowledgeable agents, customizable coverage, and nationwide coverage.

Compare Providers

Best Small Business Insurance
Company Category Why We Picked it Standout Feature 
State Farm Best Overall Industry leader with a variety of insurance policies Online virtual assistant to answer questions
Chubb Best Customizable Coverage Customizable coverage with 24/7 claims support Organized website with easy-to-find coverage information
The Hartford Best Workers' Compensation Insurance Well-known industry provider with pay-as-you-go workers' compensation plans Second-largest provider of workers' compensation insurance 
CoverWallet Best Commercial Property Insurance Easily navigable website with multiple commercial property carriers Easily compare policies in one place 
Progressive Best Commercial Auto Insurance Largest commercial auto specialist with an easy claims process  Policyholders get discounts and perks 
Hiscox Best for Freelancers and Independent Contractors Offers affordable, nationwide insurance ideal for freelancers Small business resources including calculators and insurance explanations

What Is Small Business Insurance?

Small business insurance can help protect you and your business from potential financial risks. Typically, small business insurance includes general liability coverage, business property coverage, and business interruption coverage. It may also include workers' compensation insurance and errors and omissions insurance

Small business insurance can pertain to a variety of types of insurance tailored toward different small businesses. You may be able to purchase one comprehensive policy or need multiple policies to cover different things. Most insurance companies offer custom coverage, so you can pick and choose what is best for your business. 

How Much Does Small Business Insurance Cost?

As is the case with all types of insurance, the costs of small business insurance vary greatly due to the type of business you have, the industry you’re in, the size and location of your business, as well as what risk factors are involved with your particular type of business. Expect to pay at least $500 per year for general liability coverage, and you will most likely need to add other coverages onto that. 

For an accurate small business insurance quote, it’s best to speak to an agent about the specifics of your business and the coverage that will protect it. There isn’t a one-size-fits-all small business insurance policy or price. 

How Do I Know What Type of Insurance My Business Needs?

All small businesses will benefit from some type of small business insurance. Similar to cost, the type of insurance you need will depend on your industry, the risk factors, the size of the business, and your operations. It’s best to find a small business insurance provider that operates in the geographic area of your business and then tell them about the type of business you own, your concerns, and what you want to protect. 

From there an insurance agent should be able to recommend coverage suited specifically for your small business’s needs. A marketing freelancer will have very different insurance needs than a construction company owner. Additionally, a business that operates solely online will have different insurance needs than a busy restaurant that serves hundreds of guests daily. 

What Does Small Business Insurance Cover?

The following are commonly covered by small business insurance:

  • Workers' compensation
  • Business owner's policy 
  • Errors and omissions
  • General liability
  • Professional liability
  • Property coverage
  • Coverage for business equipment and supplies
  • Commercial automobile policy 

In addition to these coverages, some businesses choose to add on extra coverage depending on their industry and needs. 


We researched more than a dozen small business insurance providers. We compared them based on several factors including time in business, overall company reputation, industries served, and what they specialize in. We also considered types of coverage offered, applicable discounts, and other policyholder perks. 

All of our top choices are reputable companies providing comprehensive small business insurance policies to specialized industries across the U.S.