Are you required to have business insurance?

While all businesses should carry some form of liability insurance to cover potential losses or damage, it is not always required by law—except for workers’ compensation (required in almost all states) and commercial auto insurance for businesses that operate vehicles on public roads. Also, certain industries, such as healthcare and construction, may require additional types of professional liability protection by law or deem them necessary for securing contracts with contractors or customers.

How do I know if I need small business insurance?

In general, you need insurance if you own or operate a small business that produces revenue, owns assets, or interacts with the public. This is because no matter how big your company is or what industry it’s in, your business faces risk and represents some amount of risk to the public. If an incident occurs, your business may face crippling financial losses if you don’t have adequate coverage. The type of insurance you need for your business depends on your industry and the specific risks you face. Based on the type and size of your business, you may need general liability insurance, professional liability (errors and omissions) insurance, workers’ compensation insurance, cyber liability insurance, commercial property insurance, inland marine insurance, or other types of coverage.

How much does business insurance cost?

The cost of business insurance varies widely depending on the size and type of business being insured and the type and amount of coverage being purchased. Generally, you can expect to pay anywhere from a few hundred dollars up to several thousand dollars per year, depending on your industry and the size of your operation. In addition, factors such as location, claims history, number of employees, types of employees, and value of business assets can also impact the cost of business insurance. This is why it’s essential to research what types of coverage you need to protect your business and to take precautionary steps like implementing safety procedures and maintaining a clean workspace to reduce risk and save money on premiums.

What are the five main types of business insurance?

The five main types of business insurance are general liability insurance, professional liability (often called errors and omissions, or E&O) insurance, workers’ compensation insurance, cyber liability insurance, and commercial property/inland marine insurance. General liability protects your business from certain claims due to bodily injury and property damage. Professional liability insurance covers legal costs if the company is sued for negligence, mistakes, or failure to provide promised services. Workers’ comp protects businesses against worker claims resulting from illness or injuries sustained in the course of their work duties. This type of coverage is legally required in all states except Texas for businesses with one or more employees. Cyber liability covers businesses from losses incurred due to online security breaches such as data breaches, viruses, and other online attacks. Commercial property/inland marine insurance protects any physical assets, such as equipment owned by the business organization, in case of damage, theft, or disasters like fire. To decide which of these coverages are necessary for your business, consider the risks your business faces and what assets need to be protected.

How do you purchase business insurance?

The easiest way to buy business insurance is online – through comparison sites or directly on a provider’s website. Some companies also allow you to speak to an agent over the phone or visit an insurance broker in your area. However, purchasing business insurance is a multi-step process and should begin with researching the various types of coverage that are best for your business. Next, we recommend getting quotes from multiple insurance providers or using an online tool like the one found on LA Times Compare that does this process for you. Review policy conditions to understand limits, deductibles, exclusions, and other conditions and limitations of coverage. Also, consider discussing your needs with an agent before committing to a policy. Call here and discuss your needs with an agent for free . After selecting an insurance company and policy that meets your needs, you can sign and submit any necessary paperwork and pay applicable deposits or premiums. Once you purchase coverage, ensure all employees are familiar with company policies, risk management procedures, and safety measures, and follow all relevant protocols once the policy goes into effect.

Best Small Business Insurance: Coverage & Providers 2024

Some of the most important types of business insurance include workers’ comp, general liability, professional liability, & commercial property insurance.
Some small businesses may benefit from combining these coverages into a comprehensive plan like a BOP (business owner policy) or a commercial pack policy.
Certain industries also carry unique risks. If you have field workers and company vehicles, you may benefit from commercial auto insurance and inland marine coverage. Similarly, tech businesses may benefit from cyber liability coverage.
Regardless of the type of policy you choose, business insurance is imperative for companies of all sizes, even sole proprietors.
In most cases, you’ll need to select several types of policies to ensure adequate coverage for diverse scenarios like property damage, theft, bodily injury, personal injury, slander, malpractice, legal expenses, medical bills, cyber-attacks, and more.
We recommend using an online quote tool to find comprehensive coverage for your business needs. These tools review offers from multiple providers to match you with the best fit based on your business’s specific parameters.

We selected some of the best business insurance plans from top providers in America to bring you a list of solid small business insurance providers.

While these are just a curated selection, you can consult more plans using our online quote tool.

If you aren’t sure what types of insurance you need, read on to find out what types of coverage are most important for small businesses. Keep in mind that most companies buy several different types of policies to ensure they are covered for each possible scenario.

Once you know which type of policy to look for, it’s equally important to compare quotes from a range of the best business insurance companies before choosing a plan.

In this guide, we’ll break down all you need to know to get a policy that fits your needs. With the right protection in place, you can rest assured knowing your business is covered against unforeseen liabilities that could majorly impact operations.

That said, here are our top picks for the best business insurance for small businesses:

A (Excellent)

General & Professional Liability Insurance

Hiscox is one of the largest insurance providers in the US and operates in all 50 states. It offers serval types of coverage options to suit your needs including:

General liability insurance
Professional liability insurance
Business personal property insurance (add-on)

Hiscox specializes in insurance for small and micro-businesses and its robust coverage options are available for tons of business types & trades. Hiscox also has over 120 years of experience behind its name as part of the original Lloyds group from 1901. This long track record speaks volumes for how trustworthy Hiscox is.

General Liability Coverage through Hiscox offers your choice of access to:

$1 million occurrence limit & $2 million aggregate limit
$2 million occurrence limit & $3 million aggregate limit

Other coverage highlights for General Liability include:

$100k in coverage for damage to rented premises
$5k in coverage for medical payments
Blanket Additional Insured endorsement (automatically included)
Waiver of Subrogation endorsement (optional)

Professional Liability Coverage through Hiscox offers your choice of access to:

$1 million occurrence limit & $1 million aggregate limit
$2 million occurrence limit & $2 million aggregate limit
$3 million occurrence limit & $3 million aggregate limit

Business Personal Property add-on:

Business Personal Property coverage is available as an add-on to your Hiscox General Liability policy
Choice of coverage limits: $5k, $10k, $15k, $20k, or $25k

A- (Excellent)

General Liability Insurance

Accredited Insurance is backed by the massively-known Travelers Insurance with whom it co-built a General Liability policy tailored specifically for small businesses.

Accredited offers insurance in all 50 states as well as Washington DC and has been in business for over 50 years. The company has proven itself for its high-quality service, stability, and integrity.

Accredited also has a strong financial strength rating of A- from AM Best. This means you can rest easy knowing that you will be supported by a strong company should anything go wrong.

Contractors opting for General Liability through Accredited gain access to:

$1M Occurrence limit & $2M Aggregate limit

Non-contractors have the option of plans ranging from:

$100k occurrence limit & $300k Aggregate limit
$1 million occurrence limit & $2 million aggregate limit

Other coverage highlights include:

$100k in coverage for damage to rented premises
$5k in coverage for medical payments;
Waiver of Subrogation (optional)
Blanket Additional Insured endorsements (optional)

A++ (Superior)

Professional Liability Insurance

Travelers is one of the largest insurance providers in the US and offers nationwide business insurance coverage.

Travelers can offer many different types of coverage for businesses of all sizes but is specifically well suited for Professional Liability plans for companies in the fields of:

Accounting
Bookkeeping
Tax Preparation

Travelers is a great choice for professional liability backing thanks to the brand’s nationwide coverage, 160 years of expertise, and top financial rating of A++ from AM Best.

Professional Liability Coverage through Travelers offers access to:

$1 million occurrence limit & $1 million aggregate limit

Optional add-ons include:

Defense Outside Limits coverage

A- (Excellent)

Worker’s Compensation Insurance

Cerity offers affordable workers’ compensation policies and can cover various types of businesses and industries. As a major insurance provider in the US, Cerity is known for its:

Low prices
Simple policies
Same-day coverage

When you sign up for a workers’ comp policy through Cerifty, you get same-day coverage and proof of insurance. This means you can get your business started faster with very little lag time.

Cerity is a well-known provider in the insurance industry and has an AM Best financial strength rating of A- (Excellent), as well as 4.4 stars on Trustpilot. Cerity is offered nationwide in all states except Ohio, North Dakota, Washington, and Wyoming (where private worker’s comp is not legally sold).

Workers’ comp coverage through Cerity offers access to:

Bodily Injury by Accident at $1M per accident
Bodily Injury by Disease at $1M per each employee, subject to a $1M policy limit

Other coverage highlights for workers’ comp from Cerity include:

Statutory Workers’ Compensation coverage
Customers have the option to include or exclude the owner in coverage when permitted under state law

A++ (Superior)

Worker’s Compensation Insurance

biBerk is a subsidiary of the famous Berkshire Hathaway Insurance Group. As part of Berkshire Hathaway, biBerk is automatically backed by an A++ AM Best financial rating and over 75 years of experience in the insurance industry. This ensures you will get reputable service and solid coverage you can rely on.

The provider specializes in Workers’ Compensation coverage for small businesses across all US states except OH, ND, WA, and WY.

A major highlight of biBerk is that workers’ comp is available to sole proprietors and multi-employee businesses.

Workers’ Comp coverage through biBerk includes Employers’ liability limits for:

Total policy limit of $500k
Bodily Injury by Accident at $100k/accident limit
Bodily Injury by Disease at $100k/employee limit
Coverage for the owner (optional depending on state law)

Other plan highlights:

biBerk’s Workers’ Comp plans offer statutory Workers’ Compensation coverage. This means that the employee is not required to prove that their employer is at fault to receive compensation.

A+ Superior)

Inland Marine Insurance

Harborway is a lesser-known provider that offers specialized coverage for:

General liability insurance
Business personal property insurance
Inland marine insurance

This provider offers great coverage for equipment and items you transport or store off-premises makng is great for companies that send employees to work off-site or occaisionally do field work.

While Harborway isn’t an AM Best rated company, it is reinsured by Munich Re which has an AM Best financial strength rating of A+.

General Liability Coverage through Harborway offers access to:

$1 million occurrence limit & $2 million aggregate limit

Other coverage highlights for General Liability include:

$100k in coverage for damage to rented premises;
$5k in coverage for medical payments;
Waiver of Subrogation (optional)
Blanket Additional Insured endorsement (automatically included)
Contractors’ Errors & Omissions endorsements (optional)

Business Personal Property Coverage through Harborway offers access to: *Property limits of $5k, $10k, $15k, $20k, $25k, and $50k *Blanket Additional Insured endorsement (automatically included)

Inland Marine Coverage through Harborway offers access to:

$5k or $10k coverage limits on inland marine property
Blanket Additional Insured endorsement (automatically included)

Identify what coverage you need and how much

As a business owner, you’re in the best position to understand the risks your business faces and the assets that need to be protected. Take time to assess your business risks carefully. Research different coverage options such as professional liability, product liability, and commercial property insurance. Once you identify the types of coverage you may need, you can get a quote for those various coverages, either individually or in a combined business owner’s policy.

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Bundle your policies if possible

Bundling multiple coverages into a single policy like a BOP or commercial pack helps you save both time and money. Bundling adds flexibility and convenience, allowing for customized coverage that fits the specific needs of the business. Moreover, bundling often leads to reduced premiums compared to purchasing the same coverages as individual policies. Additionally, bundling policies makes renewing or making changes simpler because it ensures each policy line is updated simultaneously.

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Compare rates & quotes online or with an agent

Shopping around for business insurance is a great way to find the right coverage at the best price. A quick and efficient way to do this is by using an online quote comparison tool like the one available here through LA Times Compare or speaking to one of our agents over the phone. With the online tool, you can easily compare quotes of different business policies, quickly identifying those that match your needs while offering competitive prices. This process saves valuable time, ensuring you secure top-quality protection without wasting effort searching for the best deals. Additionally, these online tools can answer related questions, making it easier to consider relevant details before binding coverage.

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Reduce risks to avoid expensive claims and premiums

Your claims history can influence the price of business insurance. If you have a history of making claims, your policy will cost more. Therefore, reducing risks in the workplace is key to filing fewer claims, and therefore, getting a better rate for your business insurance policy.

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Implement risk management policies

Implementing safety procedures in the workplace can help you and your employees better handle conditions that may cause or exacerbate incidents that could trigger a claim. Demonstrating a solid risk-management policy to your insurance provider can also help get you a better deal on your insurance policy. By implementing these procedures, you can reduce the likelihood of accidents and the overall impact of an incident, should one occur. According to OSHA, the Occupational Safety & Health Administration, safety procedures could include posting proper warning signs where necessary, equipping employees with protective gear appropriate to their roles and functions, instituting lockout/tag-out policies to prevent equipment malfunctions, and training employees on policies and procedures.

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Maintain workplace cleanliness

Cleanliness is another key to reducing workplace accidents. This means regularly checking your workplace environment and eliminating clutter or damaged materials that can be hazardous. Taking these preventative measures may involve some small costs in the near term. Still, they can reduce long-term costs by preventing costly claims.

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