Chubb – Best for Comprehensive Coverage

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Chubb is a global insurance leader with a reputation for tailored, comprehensive coverage. Notably, Chubb’s standard business owner’s policy (BOP) includes extras like business interruption and extra expense coverage – protections that aren’t always included by other insurers. This means your revenue is safeguarded if a disaster temporarily shuts you down. Chubb also excels in insuring larger or higher-risk small businesses (it even earned recognition as best for “high-risk” businesses). While very large businesses may need to go through an agent, most small businesses can conveniently get a quote online. Chubb’s strong financial stability and lower-than-expected complaint levels make it a top contender for quality coverage.

Travelers – Best for Financial Strength and Variety

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Travelers is one of the biggest names in commercial insurance, renowned for financial strength. In fact, Travelers’ high ratings indicate it can handle even very large claims with ease. For a small business owner, that means peace of mind that your claims will be paid. Travelers also offers one of the widest selections of policy types – from general liability and property to specialized coverages like cyber, inland marine, or professional liability – so you can likely find a one-stop solution. The trade-off is that Travelers often requires working with an agent for quotes (no instant online quotes), but it does provide valuable risk management resources to policyholders. If you want an insurer with deep resources and nationwide agent support, Travelers is a top choice.

Nationwide – Best for Broad Coverage Options

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Nationwide lives up to its name by serving businesses of all types across the country, and it’s praised for offering the most coverage options among peers. From standard liability and property policies to more niche coverages (like inland marine or equipment breakdown), Nationwide likely has a solution for your industry. This breadth earned it Investopedia’s “Best for Most Coverage Types” title. Small businesses that need multiple different policies (for example, a restaurant needing liability, property, liquor liability, and commercial auto) can conveniently bundle with Nationwide. The company also provides additional services like retirement plans and risk consulting for businesses. Financially strong and customer-friendly, Nationwide is a great all-in-one option if you value having every coverage under one roof.

Progressive – Best for Commercial Auto (and More)

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Progressive is a household name in auto insurance, and it shines for small businesses that use vehicles. It’s often rated the best for commercial auto coverage thanks to competitive rates and specialized packages for business vehicles. If your company has delivery vans, trucks, or even a single car for work, Progressive should be on your short list. Beyond auto, Progressive offers general liability, professional liability, and other basic business policies (often through partners) so you can get a quote online easily. One standout feature is Progressive’s 24/7 customer support – you can get help anytime via phone, email, or chat, which is ideal for busy entrepreneurs. For convenient online quotes and exceptional support (especially if you need commercial auto insurance), Progressive is a top pick.

Next Insurance – Best Online Insurance Platform

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Next Insurance is a modern online-first insurer perfect for busy small business owners who want quick coverage. You can get quotes and buy policies entirely online in minutes. Next tailors coverage to specific industries – from contractors to fitness instructors – bundling the policies you’re likely to need. For example, a photographer can get a package with general liability and professional liability in one go. Next also provides instant digital Certificates of Insurance (COI) that you can easily share to prove coverage. Customers report that Next has a smooth website and app experience. Another plus: Next tends to receive fewer customer complaints than expected for a company its size, indicating solid service. If you want to manage your business insurance 100% online and hassle-free, Next is an excellent choice.

Thimble – Best for Short-Term Coverage

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Not every business needs year-round insurance. Thimble is a newer insurtech that specializes in flexible, short-term policies – and NerdWallet even names it the best for short-term coverage. With Thimble, you can purchase insurance by the month, day, or even hour to cover specific projects or events. This is a huge benefit for gig workers, contractors, or seasonal businesses. For instance, a weekend festival vendor can buy a 3-day general liability policy just for the event. Despite its on-demand approach, Thimble offers a range of products (GL, professional liability, equipment insurance, etc.) with decent coverage limits. Everything is done through their app or website instantly. While larger firms might prefer a full-year policy, Thimble’s pay-as-you-go model provides affordability and flexibility for many freelancers and very small businesses. It’s a true “insurance when you need it” solution.

How to Choose the Best Small Business Insurance Company

Picking an insurance provider is about more than just finding the lowest price. Here are a few tips to help you choose wisely:

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Prioritize Coverage and Service over Price

“When comparing insurance companies, it’s essential for business owners to look beyond the premiums and focus on three key factors: coverage scope, customer service, and the insurer’s reputation in the industry,” says Ciara Gravier, founder of an insurance brokerage. A slightly more expensive policy from a top-rated insurer can be worth it if claims are paid promptly and coverage is broader. Check third-party reviews, customer satisfaction (J.D. Power scores), and complaint records (NAIC indexes) to gauge an insurer’s reputation.

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Assess Your Business’s Specific Needs

Think about the unique risks of your industry and size. For example, if you have employees operating vehicles, a company strong in commercial auto (like Progressive) would be important. If you’re a solo consultant, you might value an insurer that offers professional liability and lets you adjust coverage on the fly (like Thimble or Next). Make sure the insurer offers all the policy types you need; many top providers bundle general liability, property, and business interruption into a convenient BOP. Also consider whether you prefer working with an agent or doing everything online. Traditional carriers (Hartford, Travelers, etc.) have agent networks, whereas digital upstarts (Next, Hiscox) let you self-serve online.

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Compare Quotes and Look for Perks

Prices can vary significantly between insurers for the same coverage. It’s wise to get multiple quotes before you decide – you might be surprised at the difference. Some insurers offer discounts or added perks for small businesses, such as safety program credits, bundle discounts for multiple policies, or free risk management resources. Comparing quotes side by side will highlight these differences. Using a tool like Kudos or an online insurance marketplace can streamline this process and uncover hidden benefits you might miss on your own.

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Finally, remember that your insurance needs may grow as your business evolves. The best company for you now might change in a few years, so periodically re-shop your coverage. All the providers on our “best” list are financially solid and highly regarded, so you won’t go wrong starting with any of them – it’s about finding the right fit for your business’s unique needs.

Frequently Asked Questions (FAQ)

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Is small business insurance required by law?
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No, not all types of insurance are legally required for businesses. However, certain coverages are mandatory in many cases. For example, nearly every state (except Texas) requires workers’ compensation insurance if you have employees. Some client contracts or industry regulations might also require you to carry liability insurance or other specific policies. Even when not legally required, important coverages like general liability or property insurance are highly recommended to protect your business from financial harm.

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Are business insurance premiums tax-deductible?
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Yes, in most cases business insurance premiums are considered an ordinary business expense and are tax-deductible. According to the IRS and small business experts, you can typically deduct the cost of your insurance policies (e.g. liability, property, workers’ comp) from your taxable income. This is because insurance is viewed as a necessary cost of doing business. Always consult a tax professional for your specific situation, but generally your premiums for business coverage will reduce your taxable profit. (One exception: certain life or disability policies benefiting business owners may not be deductible.)

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Can I buy small business insurance online without an agent?
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Yes, many of the best insurers offer online quotes and instant coverage. Digital-first companies like Next Insurance allow you to get quotes, customize coverage, and purchase a policy entirely online in minutes. Even traditional insurers (Hartford, Chubb, etc.) have online quote tools for many policy types, though some may refer you to an agent depending on your business complexity. Buying online can be convenient and fast – just be sure you understand the coverage details. If you’re ever unsure, you can chat or call the insurer’s support (top companies provide support to assist online customers).

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Is general liability insurance alone enough for a small business?
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No, generally a general liability (GL) policy by itself is not enough for most businesses. GL insurance covers third-party injuries or property damage (for example, a customer slipping in your store), but it won’t cover your own property, your employees, or professional errors. Most small businesses need a combination of coverages. A common solution is a business owner’s policy (BOP), which bundles general liability with commercial property insurance (protecting your building, equipment, etc.) and often business interruption coverage. You may also need workers’ comp if you have staff, commercial auto if you use vehicles, or professional liability if you provide advice/services. In short, think of general liability as a foundation – important, but usually supplemented with other policies to fully protect your business.

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Is small business insurance expensive?
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No, small business insurance is typically quite affordable for the protection it provides. Premiums vary by coverage and business type, but many small businesses can get basic policies for well under a few hundred dollars per month. For example, a general liability policy costs about $42 per month on average for small businesses. A bundled BOP (which includes liability and property coverage) might average around $57 per month. Rates will be higher if you need additional coverages (e.g. commercial auto or professional liability) or have a higher-risk operation, but even then insurance usually represents a small fraction of business expenses. Considering one lawsuit or disaster could cost tens of thousands of dollars, paying tens of dollars a month for insurance is a wise and cost-effective investment in your company’s future.