Compare small business insurance quotes
Small business insurance financially protects your company against common risks such as fire, theft, bodily injury and lawsuits. But there are many different types of policies, from general liability to commercial property and business owner’s policies and dozens of companies to choose from.
What is small business insurance?
Small business insurance provides coverage to companies and their employees from third-party claims of bodily injury, property damage, and advertising injury. Depending on the policies you have, small business insurance can also protect your business property (such as tools, equipment, furniture and stock, and vehicles) and cover your workers if they’re hurt or sickened while on the job.
Small business coverage options
Small business insurance includes various policies that protect your company from physical damage, financial loss, and legal risks. Since each type of coverage addresses different threats, you may need multiple insurance policies to fully safeguard your business. The most common types of commercial insurance include:
Commercial auto
Commercial auto insurance provides liability and physical damage coverage for company-owned vehicles and those used for business purposes, including food trucks, dump trucks, trailers, limousines, buses and pickups.
Workers’ compensation
Workers’ compensation covers the medical bills of employees who get sick or injured on the job. It also provides partial lost wages if a staffer is unable to work for an extended period of time.
General liability insurance
General liability insurance, also called commercial general liability insurance, is one of the most common small business insurance policies. It covers businesses against third-party claims related to bodily injury, property damage and advertising injury. If your business gets sued, your policy also will cover your business’s legal fees and court costs, as well as a settlement or judgment against you.
Fleet insurance
Commercial fleet insurance is for businesses operating two or more company vehicles, which can include everything from cars, SUVs, heavy-duty trucks, buses to tractor-trailers. Fleet insurance covers injury and property damage should the driver of a company vehicle hurt someone or damage another’s vehicle or property and, depending on the policy, can also cover damages to a business’s own fleet.
Commercial truck
Commercial truck insurance, depending on the policy, protects owner-operators, fleet owners, truck drivers and employees by covering the cost of injuries and property damage when one of their vehicles is in an accident, regardless of fault.
Business owner’s policy
A BOP, or business owner’s policy, is insurance that provides coverage for business interruption, liability and property risks in a package policy. These policies, often aimed at small businesses, are typically more affordable than buying multiple policies to cover those risks separately.
Business liability
Business liability insurance protects your business from the financial fallout of claims due to injury, property damage , or reputational harm like libel or slander. If someone sues your business over an accident or harm they claim you caused, this insurance can help cover legal fees, settlements and medical bills.
Employer’s liability
Employer’s liability insurance protects businesses from employee lawsuits. If an employee sues for additional damages that workers’ comp doesn’t cover, EL shields your business from the financial impact.
Check out our detailed guide: Employer’s liability insurance
Which companies offer small business insurance?
In addition to the top five property and casualty insurance companies – State Farm, Progressive, Berkshire Hathaway, Allstate and Liberty Mutual – there are many companies that sell small business insurance, including:
AIG
American Family
Auto-Owners
Chubb
CNA Insurance
Erie
Farmers
The Hanover
The Hartford
Hiscox
Nationwide
Next Insurance
Philadelphia Insurance
Thimble
TravelersThe cost of small business insurance
The cost of insurance not only depends on the type of policy you want, but also on your location, the type of business you’re in, the number of workers you have, how much equipment you own and several other factors.
That said, Insureon.com, a small business insurance broker, provides these average costs for some of the more common business insurance policies:
$42 per month, or $500 a year
$67 per month, or about $800 a year
$57 per month, or about $680 a year
$61 per month, or about $730 a year
$147 per month, or $1,760 a year
Small business insurance FAQ
Do I need business insurance?
If you make your living by providing goods or services to the public and you have assets to protect, you will probably need some form of small business insurance coverage. In some cases, it may be required either by law or by contractual agreement; in other instances, it may be optional. For example, states typically require a company to have worker’s compensation insurance if they have a certain number of employees.
How do I know what insurance I need for my business?
Your commercial insurance needs will depend on several factors, including the type of work you do, the size of your business (including number of employees, if any), your gross annual sales, and what property, inventory and other belongings you have, among other factors. Talk to your agent or carrier representative about your business’s unique insurance needs.
Why do you need commercial auto insurance?
If your employees drive company vehicles for work purposes, you will be required to carry a minimum amount of commercial auto liability insurance to protect your business from third-party claims of injury or property damage. However, you will need additional coverage – such as comprehensive and collision insurance – if you want to extend protection to your own vehicles. Other forms of commercial auto insurance include medical payments coverage for your employees and their passengers and hired auto insurance for vehicles you rent, lease or borrow. Generally speaking, personal auto insurance policies do not cover vehicles used for commercial purposes.
