For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
SMALL BUSINESS INSURANCE
Business Insurance For Small Business: What It Is And Why You Need It
The Risk of Small Businesses And The Insurance Coverage Necessary for Each Type
Small Business Health Insurance Plans: What Your Employees Can Expect
Our Great Research: Small Business Insurance Companies You Must Know
Building and managing a small business is both daunting and exciting, whether you run a food truck or a local cafe. On one hand, you get full autonomy over your brand. Not to mention, you can easily divide your work into manageable chunks. On the other hand, running one involves a lot of risk and uncertainty.
So, while you can continue to hope for uninterrupted growth and sales, it pays to have a little foresight by making sure that your ventures are well-protected. This is where insurance for small business owners comes in.
There are two things that are certain in the world of business normally: taxes and losses.
If you want to soften the blow of the latter, one of the best things that you can do as an entrepreneur is to invest in a good, cheap small business insurance policy. Once you compare small business insurance quotes online through this page and find a cheap small business insurance coverage that will help you weather through some of the storms that come with a new or small business ownership, which will hopefully grow in to a bigger business if you calculate your steps well!
In their most basic structure, insurance for businesses is created for the purpose of protecting your business - including a business income, commercial property, risks and movable assets - against external and internal damages and losses.
Don't worry, we've got all the details below, so you can understand why small business owners should get insurance for their businesses. Some main reasons:
1. It will lessen the impact of your business losses
(not to mention, give you peace of mind)
As rewarding as managing your own business may be, it does come with a substantial amount of headache and stress. At every turn, you will be presented with the possibility of risks and losses.
Of course, you can continue to do your best and hope that every decision turns to monetary gains for you. However, let’s be real for a second and address the threat of risks that can translate to losses. A wrong decision can easily spin out of control and cause you to lose every veritable penny you have invested. All this can be avoided, of course, if you do yourself a favor and put your mind at ease with an iron-clad insurance policy.
2. There are people working for you
Be it a dozen working bees or a single loyal person on your payroll, once you hire someone else for their skills, one of the things you should consider is securing employee insurance for business owners. One of the most basic types that is available to you on the market is workers comp insurance for small business.
As a rule of thumb, not every business is required to ensure insurance for their workers. To confirm where you stand on this, representatives from some of the best workers comp insurance for small business will be glad to assist you.
3. You have a subject-matter expert on your payroll
Building on the previous item, if you have someone who holds a vital role in your business, one important thing that you need to secure is health insurance for small business with one employee. In the event of injury, death, and illness of said person (this can cover you as the business owner too), your business will be protected.
As you recuperate and/or search for a replacement, you can rest assured that your business will not suffer the brunt of the problem.
By now we’ve covered the “what” and “why” of securing insurance. But before you start searching for the best small business insurance, let’s learn about your options first.
The first thing that you need to know is that there are three main things that every small business owner fears the most:
Frightening as they are, these potential risks can occur during the normal course of your business dealings. However, the good news is that you can mitigate their effects by thinking ahead and securing insurance for your small business.
In the next section, you’ll learn how a good small business insurance coverage can put your mind at ease regarding these three risks, as well as others. Looking at the bigger picture, you may choose from the following plans of attack:
1. Insurance for Property Damage
Natural disasters or force majeure are unforeseen threats that can cause losses within your business. While these may be few and far between, the gravity of the damages that these disasters can spell the end for your business. We’re talking about natural calamities such as fire, flood, earthquake, and the like here.
As you might imagine, the damages that these calamities can cause are staggering. In just a moment, you might lose everything in the fire or water or rubble, as the case may be. At best, the extent of the damage may be remedied with you covering for the losses out of your own pocket. (Of course, if you were to be honest, this is not exactly an ideal situation too)
The best insurance for small business owners should include a policy that covers for the damages in events such as this. After all, the last thing that you want to happen is to cover for the damages yourself and end up filing for bankruptcy.
Carefully mapping out the possibilities may just save your business when the time calls for it. With the right insurance policy, you can have your business up and running again in record time.
2.Insurance for Legal Liability
Without small business liability insurance, you leave your business open to lawsuits and claims made by third parties. Just think about it: one small slip in from a recently mopped floor in your place of business can snowball into a lawsuit that can stretch over months or years.
Plenty of businesses have closed down simply because of injuries that their customers (and even employees) have sustained in their store. Needless to say, medical expenses as well as damages can cause an exorbitant amount of money, an amount that you might not be able to shoulder by yourself.
However, with the right backing and under the influence of small business liability insurance companies, you may just be able to prepare ahead. Settlements, legal fees, and other necessary awards covered by the best general liability insurance for small business might just be your savior.
> > Small business liability insurance cost
Even the cheapest general liability insurance small business can be just what your business needs. Your average small business liability insurance cost will range between $300 and $650 a year. However, in general, the costs will be determined based on the perceived level of risk of your business, as well as the level of coverage the business required. This means to say that a business that deals with heavy machinery will pay a bigger premium compared to a 2-person IT team that requires a cheap home based business insurance.
3. Insurance for Employees
Whether you run a 2-man team or have more than a dozen employees in your payroll, it pays to secure small business health insurance for them (and yourself). Not only will you boost morale within your team, but you can also make sure that your team is healthy, happy, and have access to the right medical aid.
As a small-time business owner, you may be considering the logistics of securing small business medical insurance. Aside from the human aspect of it, ensuring that your employees stay healthy with the aid of a comprehensive health insurance for small business owners should be one of your priorities as a business owner. If not that, then just consider how much time and effort is needed to hire and train multiple heads regularly.
As with most things, you may want to consider paying your premium for a group plan. Small business group health insurance are often shouldered by the employer but a small amount of the premium can be deducted from the employees.
The average small business group health insurance cost in 2019 was approximately $400 per month with a $3,000 deductible, that in comparison to $450 per month if you go for an individual plan, with a $4,500 deductible.
Get all the best quotes from leading providers in a click of a button!
Let’s explore insurance for employees a bit more.
So, say you’re one of the luckier small business owners who can afford to share the brunt of the work with your employees. If this is the case, you might be wondering the extent of the coverage that you can offer. There are certain requirements from your state, of course. These include coverage for short-term disability programs, time-off for voting, among other things.
Cheap small business insurance, however, mostly do not include retirement plans, vision and dental plans, life insurance, and even sick leave and paid vacations. Including these in your compensation package will be entirely up to your discretion.
If there’s one takeaway here, it’s this: small businesses are vulnerable.
Risks loom at every corner and you can easily lose your whole business at a devastatingly fast turn of events.
Fortunately for you as a small business owner, you can now easily shop around and compare small business insurance quotes online through this page find a cheap small business insurance coverage that is also broad enough and cover your business needs from a reliable and trusted company.
You can start by checking out our cheap business insurance research and find yourself a good small business insurance for as little as $5 through innovative companies, such as Thimble.
And you can also take a good look at this section, where we’ve listed 7 of the most sought-after brands and small business insurance companies that you should consider.
SMALL BUSINESS INSURANCE COMPANIES 2020
Company | Best For | Average Cost |
---|---|---|
Chubb small business insurance | International small business | $28 to $180 a month |
Thimble small business insurance | Home based businesses and IT professionals | $30 per month (cheapest policy available for $5) |
Next small business Insurance | Construction and fitness businesses and millennials looking for fast low cost coverage online | $29 per month, starts from $11 a month for fitness professionals |
GEICO small business insurance | Best for cheap ridesharing and commercial auto insurance | From $50 a year for hired and non owned auto liability |
Hartford small business insurance | Best overall choice for small businesses | $1,000 a year |
State Farm small business insurance | Best for multi-coverage option | $22 to $179 a month |
Progressive small business insurance | Best for transportation and delivery businesses | $20 to $180 a month |
Hiscox small business insurance | Best for home-based and self-employed business owners | $29 a month, starting $19 a month |
Nationwide small business insurance | Best for conservative business owners who want to mitigate risks and losses | $20 to $180 a month |
USAA small business insurance | Best insurance option for those who are serving or have served in the US military | $20 to $130 a month |
- High customer ratings: Chubb barely have any customer complaints
- 90% of the businesses renew their policies with them
- Covers businesses of all sizes
- Provides an excellent claims experience
- One of the broadest coverages available in the market making sure that you won't be left uncovered while thinking you are
- Online option is less friendly
INSURANKS RATING: 10/10
INSURANKS RATING: 9.5/10
INSURANKS RATING: 9.5/10
If you want the best possible option for workers’ compensation policies, Hartford is your best bet. Aside from this, it also offers a plethora of insurance products in its menu, including general and professional liability insurance. Discounts, 24/7 support, expedited claims - these are just some of the reasons why we’ve chosen Hartford as the best overall option for small businesses.
Hartford's average small business insurance cost is approximately $1,000 a year, with a median cost of $600 a year. For your accurate Hartford small business insurance cost, compare quotes through this page.
Pros:
> Offers location-specific guides for insurance requirements
> Offers policy discounts for bundle purchases
> Offers a pay-as-you-go workers’ compensation scheme
Cons:
> Tedious insurance application process
> Not the cheapest option
INSURANKS RATING: 9.5/10
Hiscox is our choice for “Best for home-based and self-employed business owners ". If you have 5 or less people on your team, this might just be the best option for you. It has a diverse offering that can span a variety of industries - from gyms to salons to therapists. So, regardless of the nature of your business, Hiscox small business insurance is an excellent choice.
In particular, Hiscox specializes in small business insurance for home-based businesses. With a coverage limit of up to $2 million, they offer pretty attractive packages for you and your small team.
Hiscox small business insurance cost starts from $19 per month and averages $29 a month.
Pros:
> Availability of discounts for multiple policies
> Quick and easy quoting and application online
> Easy, smooth claim process online 24/7
> Policies specifically designed for small businesses
> Global coverage
> Coverage is adjustable to many sectors and industries
Cons:
> Company is not based in the US (no local agents available)
> Some offers are completed through partners
INSURANKS RATING: 9.5/10
Closely behind Hartford as our Best Overall choice, State Farm probably has the best multi-coverage policy option in the insurance market. It does so through its nationwide network of agents. So, for searches like “small business insurance near me,” you can always count on a State Farm agent near you. With agents as business owners themselves, State Farm has truly established itself as an insurance company that understands its audience and what it offers.
State Farm's average small business insurance cos t ranges from $22 to $179 per month, depending on different risk factors such as location, industry, employees, payroll, gross income, policy limits, deductible, claims history and more. To get the best small business insurance quotes, we advise you to compare quotes through this page from the most trusted small business insurance providers.
Pros:
> Has a nationwide network of agents
> Uncomplicated insurance policies
> Comprehensive policies with the possibility of add-ons
Cons:
> Subpar customer service representatives
INSURANKS RATING: 9/10
Get all the best quotes from leading providers in a click of a button!
When it comes to small business insurance policies for transportation and delivery businesses, Progressive can be considered as the expert in this field. It handles auto claims best.
If your business is geared towards this, we’re sure there’s a Progressive small business insurance policy that will be a great fit for you. They also have commercial auto endorsements that you can tailor to your needs.
Progressive small business insurance cost ranges from $20 to $180 per month on average, with a national average of $46 per month for professional liability policies and $85 per month for workers compensation.
To learn more about the different insurance policy options available to you and get the best quotes from Progressive and other great companies, you can compare cheap small business insurance quotes online from this page.
Pros:
> Availability of discounts on commercial vehicle insurance
> Insurance policies can be in combination with general liability or a business owners policy
> Quick and easy application online
Cons:
> Discounts are only available in specific states
> Lack of online chat assistance
INSURANKS RATING: 8/10
Relatable and known for its humorous ad antics, GEICO has amassed over $28 billion assets in all of its years in business. The company has a rating of AA+ from Standard and an A++ from A.M. At the moment, it widely distributes its offerings into six products - namely rideshare, commercial auto, professional and general liability, workers’ compensation, and business owner’s policy. However, it is best known for the insurance product sold directly through: their commercial auto policy and rideshare.
GEICO has a small business insurance quote calculator online as well.
Average GEICO small business insurance cost is approximately $500 a year, however commercial auto insurance cost starts from $50 a year for hired and non owner auto insurance liability. This makes it among the cheapest small business insurance policy options in the market for commercial auto insurance. To get the best quotes for your business needs, compare quotes from GEICO and other great companies through this page.
Pros:
> Stable and reliable insurance company
> Provides discounts upon proof of sterling driving record
> Responsive and helpful customer service representatives
> Provides further discount to government and military employees
Cons:
> No insurance agents (is it a disadvantage though?)
INSURANKS RATING: 8/10
We get it - insurance claiming can be a tedious process. This is true especially when there is a question of liability involved. Nationwide small business insurance is as straightforward in the matter general liability insurance claims as possible, making it ideal for businesses everywhere. Nationwide's general liability insurance policy can help you reap a minimum of $1 million. It offers policies to more than 14 industries, and yours could be one of them.
Nationwide small business insurance cost ranges from $20 to $180 per month, depending on many factors.
To get the best small business insurance quote from Nationwide and other great small business insurance companies, compare quotes through this page easily.
Pros:
> Above average customer satisfaction rating
> Includes investment services such as surety bonds
> Easy and expedited online claims
> Expedited and thorough follow-through, especially for general liability claims
Cons:
> Still requires calls despite online application availability
> There’s an alarming number of dissatisfied customers
INSURANKS RATING: 8/10
USAA small business insurance is a dedicated insurance option for those who serve (or have served) in the U.S. military. USAA's services are also available to family members who own small businesses. Known for its affordable rates and reliability for any type of insurance, including small business insurance.
USAA small business insurance cost is $20 per month and can go up to $130 per month, you have a wide range of options with USAA insurance policies. It also offers individual policies that you can tailor based on your business needs.
Pros:
> Offers competitive coverage options for veterans and their families
> Insurance policies are customizable based on your business needs
> Financially stable and reputable
Cons:
> Insurance is offered through third-party companies
INSURANKS RATING: 7.5/10
Sources and References:
https://www.investopedia.com/terms/b/business-liability-insurance.asp
https://smallbusiness.chron.com/types-company-risk-protection-insurance-16873.html
https://www.nerdwallet.com/blog/insurance/reviews/aarpthe-hartford-auto-insurance-review/
This company does not care about the people they insure or the people that work for the company. They do stupid meets all day long about quality on calls while injured workers sit in pain waiting for answers but can never get to anyone to help them. This company hires uneducated people to run the company so that nothing important get done. I have heard so many stories about injury workers having bad service. They can’t never get their claims adjuster on the phone and the doctors that this company tells people to go to do not care about their patients causing their injuries to become worse. This company neglect on taking care of people’s injured employees have caused people to end up with disabilities for the rest of their life. if you get insurance under this company you will end up having to hire a lawyer to fight them in court. Do not get a policy with this company. Your employees will pay the price and so will the owners of the company. Honestly they need to get shut down. Avoid at all cost do not get this insurance and do not work for this company.
Terrible customer service. I got this insurance for my Amazon store when I ran one, took a break and cancelled all my subscriptions. I called these guys and they recommended sending an email. They never responded and have been charging me since then. Definitely going to dispute via the bank. Hate when businesses take advantage of other small businesses for their own gain.
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another. Every conversation had an under lying tone of me being dishonest. Finally I just gave up with them and filed a despite with my bank which took all of three days.. So now I'm continuing to receive emails that my policy is past due and will be cancelled. Funny, I was told I didn't have a policy because they couldn't locate it.
Purchased the General Liability policy I needed to fulfill a contract for my hiring party. Simply Business made it very easy to complete an application and review multiple quote options. Ended up purchasing a policy for 1/2 of what I originally was told by my agent.
I insured my small business with them from early 2016 to January 2022. I had a workman's compensation policy with them the entire time for my staff of approximately 10 people which fluctuated up and down minimally over the years. We ran a very safe operation and never had so much as one claim. I sold my business in early 2022 and cancelled my policy which triggered a final audit of $2871.00 which was owed back to me. Of course I dissolved my LLC immediately after selling the business and thus closed my bank checking account at the advise of my accountant. Though my name was on the business policy, Employers Preferred Insurance Company refused to issue a check to me directly as the policy holder due to...you guessed it, policy. Long story short, if you sell your business keep a small amount deposited in the checking account because it's almost a guarantee that companies such as Employers will use their policy to weasel their way out of money owed after the dissolution of a business. I should have known that I would be treated a just another number shortly after I signed with them as the sales agent just disappeared after I was set up for an online account to manage my policy. My next business venture will entail me working with an actual insurance agent who has an office in an actual brick and mortar building!