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Written byJanet Berry-Johnson
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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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In This Article
Running a business involves taking risks. You could damage a customer’s property, someone might get injured on your premises, or a data breach could leak your customers’ sensitive data. The right business insurance protects you from financial losses and lawsuits so you can keep your operations running smoothly.
Depending on your industry and business structure, you may need general liability, commercial property, professional liability, workers’ compensation, or cyber insurance.[1] We’ll help you identify the coverages you need and recommend some of the best business insurance companies for small business owners.
Key Takeaways
The best business insurance depends on your company’s size, industry, and specific risks.
Shopping around and comparing multiple insurers helps you find the right balance of coverage and cost.
Review your policy annually to make sure your coverage continues to meet your business’s changing risks.
Our Picks for the Best Business Insurance Companies
No insurer is the single best company for every business. Pricing, coverage options, customer service, and digital tools vary from company to company.
We chose the companies below based on financial stability, broad availability, and distinct strengths that appeal to many small and midsize businesses. Use our picks as a guide while exploring your options.
The Hartford: Best for broad business coverage
Pros
Excellent complaint record[2]
Online quote tool available
Tailored programs for dozens of industries
Cons
Few discounts available
Below-average customer satisfaction[3]
Coverages and requirements vary by state
The Hartford is a good option for business insurance. It offers programs for businesses of all sizes across multiple industries, including service-based companies, non-profit organizations, contractors, healthcare, manufacturers, and product-based businesses.
You can start a quote online, making it a practical first step for many business owners comparing coverage options.
Erie Insurance: Best for customer service
Pros
Top-tier customer service
Strong agent support
Discounts available for sprinklers and alarm systems
Cons
Coverage not available in all states
Quotes only available through independent agents
Customer experience may vary by agent
Erie earns a spot on our list for its outstanding customer service and strong agent network. The company ranked above the industry average, scoring the highest among small business insurers in J.D. Power’s U.S. Small Commercial Insurance Study.
If your priority is working with a company known for its responsiveness and customer support, rather than simply offering the lowest premium, Erie is a good option.
Travelers: Best for risk control resources
Pros
Comprehensive risk control resources
Programs tailored to several industries
Strong financial stability rating
Cons
Quotes only available through independent agents
Limited coverage details available online
Service may vary by agent
Travelers offers business insurance tailored to a range of industries, including agribusiness, car dealerships, professional services, construction, education, energy, and healthcare. The company’s risk control program is one of its standout features, which provides training and on-site and virtual consultations.
It also provides research and tools to help small business owners manage risks and related costs. Travelers is a smart choice for your business if you value prevention as much as protection.
Chubb: Best for businesses with global risk exposure
Pros
Above-average customer service
Operates in 54 countries and territories
Extensive cyber and data breach resources
Cons
Coverage may be pricier than some competitors
No stand-alone property coverage
Not accredited by the Better Business Bureau (BBB)[4]
Chubb stands out for offering high policy limits and serving multinational companies. The company also has an extensive cyber insurance program to help you protect your business with resources and consultations through its Cyber Risk Advisors.
The company’s resources make it an excellent option for businesses that operate globally or handle large volumes of sensitive customer data. But it doesn’t offer stand-alone property coverage for small businesses.
NEXT Insurance: Best for instant quotes and proof of insurance
Pros
Fast online quotes
Unlimited access to certificates of insurance
App-based policy management
Cons
Limited live customer support
High customer complaint index [5]
Limited coverage options for larger businesses
NEXT Insurance offers instant online quotes, allows customers to manage policies through an app, and issues unlimited self-serve certificates of insurance. An AI assistant handles most initial customer service interactions 24/7, while live support is available during standard business hours.
The company’s National Association of Insurance Commissioners (NAIC) complaint index rating is significantly above average. NEXT is ideal for business owners who prioritize speed and convenience over hands-on customer support.
We chose the companies you see above based on a combination of customer satisfaction scores, coverage availability, policy management features, industry reputation, and more. Each selection was hand-picked as the best option for specific types of businesses and coverage needs.
How to Choose the Right Insurance for Your Business
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Buying business insurance is about protecting what you’ve built. While coverage like commercial auto insurance is relatively simple, other types of policies, like professional liability coverage or cyber insurance, require more careful consideration.
Follow these steps to find the right protection for your business:
Assess your risks. Identify what could go wrong. For example, your business could damage a customer’s property, face a lawsuit from a client slipping on your premises, have sensitive client data stolen during a cyberattack, or have an employee who gets injured on the job.
Know your legal requirements. Some states or contracts require you to have certain coverages. For example, many states require you to buy workers’ compensation as soon as you hire your first employee, or your office’s lease may require you to have general liability insurance.[6] [7]
Compare companies and policies. Get quotes from multiple companies. Compare prices, coverage, limits, exclusions, and deductibles to find the best option.
Bundle strategically. Combining coverages in a business owners policy (BOP) or commercial package policy can simplify policy management and potentially help you save money.[8]
Review your coverage annually. Reassess your coverage limits regularly. You may need higher limits or additional coverages as your business grows or your operations change.
Types of Business Insurance to Consider
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The type of insurance your business needs depends on your operations, industry, number of employees, assets, and potential liability exposure. Here are some common coverage types that businesses need.
General liability protects your business against claims of bodily injury, property damage, or personal injury caused by your business.
Commercial auto provides bodily injury and property damage protection for vehicles used for business purposes.
Commercial property insurance covers your buildings, equipment, and inventory against fire, theft, or other losses.
Business interruption insurance replaces lost income if you must temporarily close your business due to a covered incident.
Workers’ compensation pays for medical costs and lost wages for employees who experience a job-related injury.
Professional liability insurance, or errors and omissions (E&O) coverage, protects your business against claims of negligence or inadequate work.
Product liability insurance covers injuries or property damage your products cause.
Business owners policy (BOP) combines general liability, property, and business interruption coverage into one convenient package for small businesses.
Best Business Insurance FAQs
Choosing a business insurance policy can feel overwhelming with so many companies and coverages available. Here are answers to a few common questions people ask to help you in your search.
What’s the best business insurance company?
No one best insurance company exists for every business. Our top picks for business insurance include The Hartford, Travelers, and Erie, with each shining in different areas.
For example, Erie ranks highest of all small business insurers for customer service, while The Hartford offers the widest selection of coverage types. The right company depends on your industry, coverage needs, service preferences, and budget.
What’s the best business insurance to have?
General liability insurance is usually the most essential coverage because it protects your business from lawsuits and claims of injury or property damage. From there, add other policies like commercial auto, property, and workers’ compensation, based on your business risks.
What’s the best place to buy business insurance?
You can buy business insurance through an independent agent, directly from an insurance company, or through an online platform. Compare prices, coverage, and service options to find the best fit for your business.
What are the different types of business insurance?
Businesses often need basic policies like general liability, property, workers’ compensation, commercial auto, professional liability, and business interruption insurance. Some companies also need cyber liability insurance, product liability, or umbrella insurance for extra protection.
How do you determine how much business insurance you need?
Start by considering the value of your assets, like furniture, equipment, buildings, and commercial vehicles. Then, consider your potential risks and any contracts that require insurance coverage. Your coverage should be high enough to replace assets, cover liability judgments, and meet any lender or client contractual requirements.
How much is a $1 million general liability policy?
The average small business pays about $40–$85 per month for a $1 million general liability policy. But your actual cost depends on factors like industry, location, and claims history.[9]
Sources
- U.S. Small Business Administration. "Get business insurance."
- Naic.org. "Consumer Insurance Refined Search Results."
- Jdpower.com. "2025 U.S. Small Commercial Insurance Study."
- Better Business Bureau. "Chubb Ltd.."
- Naic.org. "Consumer Insurance Refined Search Results."
- III. "Workers Compensation Insurance."
- Iowa Legal Aid. "What to Consider Before Signing a Commercial Lease."
- III. "Understanding commercial package policies."
- Insurance Business Magazine. "How much does small business insurance cost?."
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Janet Berry-JohnsonPersonal Finance Writer
Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
