One of the most costly errors a company can make is cutting down on business insurance. Without adequate coverage, firms may be responsible for thousands of dollars in losses caused by lawsuits or unforeseen catastrophes. Without insurance, burglary and theft, which have hit one in five small businesses, cost an average of $8,000. Fire damage typically results in average losses of $35,000, while reputational damage typically costs in the area of $50,000.
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Despite this, three out of every four U.S. corporations and forty percent of small businesses lack proper insurance coverage. Some business owners believe insurance is unnecessary if it is not mandated by law. Sadly, nothing could be further from the truth. For instance, if you use your personal vehicle for work purposes, you will need commercial auto insurance, as your personal policy will not cover anything that occurs during company hours. In addition, several states mandate that businesses hold particular insurance policies, such as workers' compensation and liquor liability, among others.
Commercial business insurance requirements vary by company size and industry, which is why we have compiled the finest policies for a variety of coverage kinds. We evaluated 29 providers to determine the top competitor in each category based on policy specifics, cost, and service.
The Best Commercial Business Insurance Companies
Nationwide
Nationwide offers industry-leading coverage and support for the largest variety of business kinds and sizes, making it our top pick for commercial business insurance.
Due to the diversity of business insurance requirements, many providers can only offer limited coverage for specific types of enterprises. Nationwide's policy options for small and large enterprises surpass the competition. Coverage encompasses virtually every conceivable type of protection, including traditional policies such as general liability and umbrella insurance, additional protection from equipment failures and employment-related lawsuits, and even more contemporary options through cybersecurity protection.
Nationwide also receives praise from a number of industry-specific rating bodies. AM Best has assigned a financial stability rating of A+ (Superior). Nationwide, the 2020 J.D. Power Small Commercial research yielded unsatisfactory results. This was a significant reversal from their 2019 success.
Online estimates are limited to five types of coverage, which is one of Nationwide's few downsides. To obtain more specific insurance information, you must call and chat with an agent. There are also a few small business industries, such as hotels and real estate agents, that receive no special attention. Lastly, Nationwide's commercial insurance is unavailable in Alaska and Hawaii, but it is available across the continental United States.
Next Insurance
Next Policies designed exclusively for lone entrepreneurs and small businesses are available. Next Insurance is our top recommendation for self-employed individuals seeking business insurance due to its inexpensive monthly premiums and elimination of coverages that are unnecessary for self-employed firms.
The majority of commercial insurance policies are primarily tailored for organizations with several employees and substantial annual earnings. Due to these algorithms, sole proprietors may pay exorbitant amounts for coverage they do not require. Next Insurance is a relatively young player in the commercial insurance industry that specializes in policies for self-employed, business-owning individuals.
Next Insurance products do not offer every sort of commercial insurance, but they do give the coverage that is essential for small businesses: general liability, professional liability, errors and omissions insurance (E&O), commercial car, tools & equipment, and even workers' compensation. Due to its restricted insurance options, Next may not be the best solution for all sorts of businesses, yet coverage is generally accessible in all 50 states. The firm offers rapid online quotations, which is uncommon in the business insurance industry, and can even begin coverage the same day.
According to Next, self-employed enterprises can save up to 30 percent compared to typical commercial insurance policies and up to 10 percent when they bundle different forms of coverage. Next provides general liability plans with rates beginning at very low levels.
Due to Next Insurance's youth, it has not yet been rated by organizations such as AM Best or J.D. Power. However, it is backed by Munich R.E., which AM Best rates A+.
Berkshire Hathaway
Offering two classic business owner's policies (BOP) and one more comprehensive option, Berkshire Hathaway is the finest business owner's policy (BOP) provider in our evaluation, since it may give unprecedented combined coverage for all elements of your organization.
It is well-known that Berkshire Hathaway is the parent business of GEICO. However, the conglomerate also offers commercial insurance through two channels: biBERK, a full-service small business insurance company, and THREE, a relatively new venture that has created ripples in the sector by offering a three-page policy.
biBERK, which offers both general liability and property coverage, is available to businesses seeking a customisable business owner's insurance. General liability insurance includes coverage for property damage, personal injury, product liability, and copyright issues. The property coverage will encompass the building and leased spaces, as well as the business income and contents within the premises. Cybersecurity and employment practices liability add-ons are available to business owners as extra options for customisation.
THREE provides a more inclusive option, which includes all the components of a business owner's policy plus business interruption, cybersecurity, workers' compensation, and commercial auto. This inexpensive, all-inclusive policy is ideal for small businesses that would otherwise need to combine a BOP with costly additional coverage. Workers' compensation was quoted at a reasonable monthly rate for a small retail store with one vehicle and three employees.
Even though both biBERK and THREE are industry newcomers, they are backed by Berkshire Hathaway, which has been in the insurance business since the 1960s. However, this means that coverage for businesses is not yet available in all states. BiBERK offers BOPs in 29 states at the time of publication, while professional liability E&O coverage is available in 50 states. THREE continues to add states to its coverage area, and the policy is already available in many states where biBERK does not provide full BOP coverage.
The Hartford
The Hartford has the most comprehensive and reasonably priced commercial property insurance policies in our evaluation, which are available to solo owners and large organizations alike.
In addition to general liability insurance, commercial property insurance is the most often held business coverage, as it protects everything from tools and equipment to office furniture from theft and damage. The Hartford provides commercial property policies applicable to any business, from home-based entrepreneurs to multinational corporations with hundreds of millions of dollars in property to insure, making it our top recommendation for commercial property policies.
The Hartford's commercial property insurance are separated into two categories: small businesses with a total insurable value of less than $200 million and large enterprises with a total insurable value beyond this threshold. While essential coverage stays constant, each insurance is tailored to the individual demands that vary based on the size of the business. Large property insurance claims, for instance, are managed by professional agents and include loss control services provided by The Hartford's risk engineering team.
Online prices for commercial property insurance from The Hartford are normally available, but you may need to work with an agent if you have a large business or require specialist coverage.
Although insurance are available in the majority of states, you cannot get coverage if your business is located in Alaska or Hawaii. Also, keep in mind that while The Hartford sells commercial property policies for businesses of all sizes, this insurer is primarily aimed at smaller firms. In 2019, The Hartford wrote more premiums for small businesses ($3.7 billion) than premiums for medium and large businesses ($3.1 billion) combined.
Progressive
Progressive is the leading supplier of commercial auto insurance in the United States, with more commercial auto direct premiums written than any other insurer, according to our analysis. Almost every business vehicle is eligible for protection.
As of 2019, Progressive is by far the largest commercial auto insurer in the United States, with policies covering more than one million commercial vehicles. Progressive offers policies for trucks, buses, trailers, and even personal vehicles that are partially used for business purposes, whereas competitors place restrictions on certain vehicle categories and industries.
Progressive's commercial auto insurance packages offer unparalleled convenience, including 24/7 customer support and coverage in all 50 states. You can also save money on your company insurance policy by bundling commercial auto with general liability or a BOP.
Progressive estimates that the average monthly premium for business auto customers is approximately $188 per month. Certain industries, however, will pay significantly more; for instance, commercial truck insurance through Progressive costs between $640 and $982 per month on average, and the average tow truck policy costs $448 per month.
There are several restrictions on Progressive's commercial auto insurance policy. Certain types of vehicles, including golf carts and emergency vehicles such as ambulances and fire trucks, are excluded, as are trailer-only policies. Progressive outsources other types of commercial policies to third parties, so if you are purchasing more than just auto insurance for your business, you should be aware of this.
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