If you’re a small business owner, you have plenty of options when it comes to getting cheap small business insurance. Even if you’re running a small business, you can never expect everything will go smoothly without something unfortunate happening.
Sometimes taking risks is necessary for businesses and individuals to reach their goals. However, if things don’t go as planned and there is a loss of value, profits, or even personnel, it is important to have a plan in place such as insurance to protect the investment and those involved in the company.
Knowing that choosing a suitable insurance company is not as easy as the policy is quite complicated, Keep on reading until the end to see which insurance company listed best fits your business.
11 Cheap Small Business Insurance Companies
Hiscox
Hiscox is a leading specialist insurer in the USA with a long history of protecting small businesses. They offer fast and affordable coverage, including options for professional liability, errors and omissions, general liability, workers’ compensation, business owner’s insurance, cybersecurity, and more.
They serve customers worldwide across various industries and even provide a fast and free quote in minutes for those whose business expertise is not listed.
As one of the best small business insurance companies, Hiscox offers specialized coverage to meet specific needs, including cheap workers comp insurance and business liability insurance quotes.
Pros:
- Great scalability of international insurance
- Policies specialize for small business’s needs
- Offer various business insurance products
- Offer a 14-day money-back guarantee
Cons:
- No local office
- Not for large companies
For general liability insurance, there is a minimum annual premium of $350. Hiscox offers three types of insurance, with costs varying depending on the specifics of the plan.
- Professional Liability: coverage from $22.50
- General Liability: coverage from $29.17
- Business Owner’s Policy: coverage from $41.67
The Hartford
Hartford is a highly reputable and reliable insurance company that offers a wide range of insurance options and industry-specific packages with multiple coverages.
Their small business insurance is particularly noteworthy, as it provides comprehensive coverage for a variety of potential damages and lawsuits, including accidents, natural disasters, professional errors, workers’ compensation, and more.
With over 30 years of experience in helping small businesses, The Hartford is a trusted and highly-rated provider of business insurance for small businesses, including small business insurance for LLCs and general business insurance.
Hartford’s Business Owner’s Policy (BOP) offers three essential coverages:
- General Liability Insurance: this makes up for the lost earnings when you have to cancel your business due to unfortunate incidents, such as fire or theft.
- Business Property Insurance: insurance covers the tangible assets, equipment, and tools that your business owns or rents.
- Business Income Insurance: insurance compensates for any income loss when an unfortunate event such as fire or theft forces you to halt your business operations.
Hartford offers scalable insurance options that can adapt to your changing needs. The company can provide you with a personalized insurance quote based on the potential risks your business may face.
Some types of coverage you may face on your business growth path are:
- Workers’ compensation
- Commercial auto
- Professional liability
- Cyber insurance
Pros:
- Multiple types of industry-specific coverages
- Coverages can be tailored to meet specific requirements
- Professional and enthusiastic specialists
- Offers the best worker’s compensation insurance with a range of convenient and high-quality services
- Excellent customer service
- Offer insurance in all 50 states
Cons:
- The online quote form isn’t always good, and you have to switch to a direct call with an agent
- Since The Hartford is intertwined with AARP (American Association of Retired Persons), policies are only available to the organization’s members
The cost of specific insurance can only be provided when applying for a quote, however, Hartford’s Business Owner’s Policy (BOP) offers four levels of coverage options: Stretch, Stretch Plus, Super Stretch, and Premier Stretch.
The Stretch level offers coverage for common risks faced by small business owners, starting at around $100. It’s important to keep in mind that insurance costs can also be affected by potential lawsuits, as claims that lead to a lawsuit will result in higher insurance costs.
State Farm
State Farm is a well-established insurance company that was founded in 1922 by G.J. Mecherle, a retired farmer. The company is renowned for its auto and home insurance and has a long history dating back to its founding days when G.J. Mecherle first sold his first single line of auto insurance.
State Farm’s mission is to help people manage the risks of everyday life, recover from unexpected events, and achieve their dreams. The company has always been committed to the highest standard of integrity, as reflected in its founder’s saying, “Honesty isn’t the best policy – it is the only policy”.
State Farm offers a wide range of insurance coverage options, making it one of the best overall insurance companies in the US. The company is well-known for its auto insurance, but it also offers a range of small business insurance options to protect your business and support its growth.
State Farm is a great option for small businesses looking for cheap small business insurance, and it also offers some of the best general liability insurance for small businesses. With State Farm, you can be confident that your business is protected and that you are getting the best coverage at an affordable price.
Pros:
- A nationwide network of agents
- Has local agents
- Various types of coverage with other endorsements and add-ons (e.g, in-home business endorsements)
- Dedicated to providing customer ease through a user-friendly mobile application
- Many discounts for policyholders
Cons:
- Limited deductibles compared to other insurers
- Discounts are not for all states
- The online quoting system is not available for mobile or manufactured homes sometimes
The cost of State Farm’s commercial insurance policies varies depending on a number of factors, including the location and industry of your business, gross sales, number of employees, payroll, policy limits, endorsements, deductibles, experience, and claims history. On average, the cost ranges from $22 to over $179 per month.
Insureon
Insureon is a leading insurance marketplace that partners with multiple top carriers to provide a wide range of insurance options for businesses.
The platform makes it easy for you to compare numerous quotes from different A-rated carriers, enabling you to choose the best type of insurance for your business based on factors such as price, coverage extent, exclusions, deductibles, and more.
Insureon offers a variety of essential coverage options, including general liability insurance, business owner’s policy (BOP), professional liability insurance, commercial property insurance, workers’ compensation insurance, cyber liability insurance, and more.
Pros:
- Approach multiple quality carriers from a single marketplace
- A huge collection of coverage types
- Offer hundreds of licensed representatives to communicate with you about your insurance options
Cons:
- Offer the online quote for only eight insurance products
- In order to obtain quotes for additional coverage types, contact Insureon
- Insureon does not handle policy matters and any queries or claims regarding policies will be directed to the carrier
The cost of insurance coverage through Insureon is determined through an analysis of 28,000 small business owners who have purchased commercial insurance from the company. On average, the cost of general liability insurance – the first and most affordable option that small businesses need – is $42 per month or $500 per year.
The cost of a business owner’s policy, which combines general liability with property insurance at a discounted rate, is $53 per month or $636 per year.
Additionally, many business owners pay less than $1000 annually for cyber liability insurance, with some paying between $1000 and $2000 per year.
Next Insurance
Next Insurance is the ideal choice for small business owners who need quick and easy insurance coverage. There are many situations where small business owners need to purchase instant insurance, such as when applying for a business loan and needing to provide proof of insurance to the lender to secure the loan.
Insurance guarantees the ability to repay the loan and increases the lender’s trust in the borrower. Next Insurance offers fast online insurance, making it a great solution for these types of situations.
Next Insurance offers four essential business insurance products: general liability insurance, professional liability insurance, commercial auto insurance, and workers’ compensation insurance.
Pros:
- Take under 10 minutes to get a quote
- Custom policies tailored to each industry
- No additional charge for monthly premium payment
- Quick response to customers
Cons:
- BOP and property insurance are not available
- Offer only six insurance products
Next Insurance offers some of the most competitive pricing on the market. To get an accurate cost for your business, it’s best to apply for an online quote which may require answering additional questions to tailor the quote to your specific needs.
TrustedChoice
TrustedChoice takes convenience in insurance service to the next level by offering a wide network of independent agents. The local service is top-notch, as there is an independent agent in every city, making it easy for you to access the consultation and advice you need.
TrustedChoice offers a wide range of business insurance options, including liability insurance, commercial property insurance, commercial vehicle insurance, inland marine, workers’ compensation, and directors & officers (D&O) insurance.
These are essential coverages for small businesses and can be customized to fit your business size, niche, goals, and budget. You can also request a business insurance quote from TrustedChoice to get a better idea of the cost.
Pros:
- Local agents in every city
- Customize coverages to address your specific needs
- Independent agents focus more on serving customers
- You fill your needed coverage, and agents compare multiple insurers to find the best fit
- Gather quotes from 55 insurance providers
Cons:
- A different local agent might deliver a different customers experience
- Comparison options are all in the agents’ hands; customers are not involved
- No online quotes
The cost of business insurance for small businesses can vary greatly, with some policies costing as low as a few hundred dollars per year. It’s important to note that the higher the risk associated with your business, the higher your insurance premiums will be.
Factors that affect premiums are:
- Number of employees
- Likelihood of data breaches
- Likelihood of accidents
- Likelihood of lawsuits
- Likelihood of damages
Suracy
Suracy is dedicated to providing the best coverage to protect your business, manage risks, and foster growth. They offer national business insurance programs that support a wide range of franchises, small and larger businesses, and organizations.
Suracy is particularly well-suited for small and medium-sized businesses, providing essential coverage options that are both cost-effective and tailored to their specific needs.
With Surface, you can find appropriate insurance solutions that allow your business to thrive with safe and transparent policies. The company offers a wide variety of insurance options to choose from including:
- Professional liability insurance
- Workers’ compensation insurance
- General liability insurance
- Business owner’s policy
- Commercial property insurance
- Cyber liability insurance, disability insurance
- Employment liability insurance
- Commercial auto insurance
- Medical malpractice insurance
- Paid family leave
Pros:
- Streamlined distribution across locations
- Customize insurance policies addressing businesses’ needs
- Offer useful tips and resources for businesses
Cons:
- Insurance provided by third-party affiliates
Surrogacy offers a variety of insurance products for small businesses. The cost of each product can vary based on factors such as the industry, the size of the business, and the risks associated with the business.
TechInsurance – Technology Business Insurance
TechInsurance is a great option for small businesses looking for the best rates and coverage options. The company offers a variety of small business insurance types that address different accidents, lawsuits, and damages that your business may encounter.
TechInsurance specializes in providing coverage for the most common risks faced by tech and software companies. Specifically, the company offers the following insurance coverage options:
- Errors and omissions insurance
- Cyber liability insurance
- Fidelity bonds
- Business owners’ policy
- General liability insurance
- Workers’ compensation
Businesses that have expensive equipment, a board of directors, or additional liability concerns may require expanded coverage. In order to better serve these customers, TechInsurance offers specialized coverage options for unique risks.
These specialized options include umbrella/excess liability insurance, commercial property insurance, business interruption insurance, employment practices liability insurance, and directors and officers insurance.
Pros:
- Fast & easy insurance purchases
- Competitive Pricing
- Fast & professional support
- Variety of insurance options tailored to unique risks
- Helpful small business resources
Cons:
- Contact is not good sometimes
Median costs come directly from policies that you purchase from TechInsurance.
- General liability: $28/month or $340/year
- Errors and omissions: $61/month or $728/year
In addition, TechInsurance provides a free application that allows you to estimate the cost of insurance for your business prior to purchasing. The policy limits and deductibles can impact the cost of small business liability insurance. The higher the limits, the higher the cost but also the greater coverage will be provided.
Nationwide
Nationwide is a business insurance company that specializes in providing simple and straightforward insurance solutions for small businesses with high risks and specific needs for general liability coverage.
Starting as a small mutual auto insurance company, Nationwide has grown to become one of the largest insurance and financial service companies worldwide, earning a reputation for providing the best general liability insurance.
In addition to general liability insurance, Nationwide offers a wide range of other business insurance options, including business property, commercial auto, business owner’s policy, business liability, workers’ compensation, cyber liability, and more.
Pros:
- Easy to register an account and get a quote
- A variety of insurance coverage
- Have some specialty insurance offerings
- Nationwide is financially stable
- Vanishing deductible
Cons:
- No disability insurance or major medical insurance
Similar to many other insurance providers, the average cost of Nationwide’s commercial insurance policies is determined by various factors such as your business’s industry, location, gross sales, number of employees, payroll, deductible, endorsements, policy limits, experience, and claims history. These costs typically range from $22 to over $179 per month.
Travelers – Business and Personal Insurance Solutions
Travelers are dedicated to turning risks into opportunities for your business. Recognizing that every industry faces its own unique challenges, the company offers a wide range of business insurance options tailored to your specific needs.
Not only does Travelers help you manage unexpected events, but it also provides support in identifying and preparing for potential risks, enabling your business to recover more quickly in the event of an incident.
Travelers combine three crucial coverages under its Business Owners policy, which include commercial liability insurance, commercial property insurance, coverage for business income, and additional expenses. The company caters to a wide range of industries including:
- Construction
- Energy & Renewable
- Financial Institutions
- Healthcare
- Manufacturing
- Real Estate
- Technology
- Transportation
- And more
However, it is important to be cautious and conduct thorough research before purchasing insurance coverage from a Travelers independent agent, as there are many complaints about the company.
Pros:
- Have expertise in any industry to help invest right
- Fair, fast & effective services
- Solid financial strength
- A++ rating from A.M. Best
- Support over 20 industry specializations
Cons:
- The cost and features vary greatly depending on the industry and operations
- There are numerous customer complaints about home and auto services
The cost of traveler’s insurance is dependent on several factors, including the age of the traveler, the type of plan selected, the number of travelers on the trip, the destination, any pre-existing medical conditions, coverage limits, deductibles, and the length of the trip.
On average, the cost of travel insurance can range from 4-10% of the total non-refundable trip expenses. It is worth noting that some premium plans may have a cost that exceeds this range.
How to Review for Cheap Small Business Insurance
Choosing cheap small business insurance policies for your company’s needs can be a daunting task. Here are tips on how to review the best business insurance:
- Tally your Assets,
- Think about your risks,
- Consider your responsibilities,
- Compare coverage to Cost.
What Insurance Do You Need for a Small Business?
Here are common coverage types when you’re buying small business insurance for your startup:
General Liability
General liability insurance protects you from particular liability claims against your business, such as bodily injury or property damage.
Commercial Property
You can protect your property with insurance, which pays for restoring it in case of an unfortunate accident or event. Some kinds of coverage include physical damage and theft.
Workers Compensation
Most employers offer insurance that provides coverage for job-related illnesses or injuries. In some cases, rules also vary on who has to be covered on what basis.
Commercial Auto
It’s important to maintain your personal auto insurance policy & have a business-use-oriented vehicle insurance policy in place!
Errors & Omissions
(E&O) will cover these costs if your customer claims you did something wrong.
Inland Marine
Insurance provides protection for your business when you transport items by land.
Cyber Liability
Your computer system & data can get hacked and it’ll be covered by your insurance policy.
What Does Small Business Insurance Not Cover?
There are situations in which small business insurance does not provide coverage, including:
- Flood damage to your business,
- Fraudulent and intentional acts,
- Wrongful termination.
Bottom Line: Cheap Small Business Insurance
Insurance is undeniably imperative for any business, especially small businesses. As an insurance company will be an umbrella that protects your vulnerable business from unexpected events and loss, it would be best to directly contact the company and clarify what you want to know about that company, its services, and your benefits.
It is important for small business owners to research and compare different insurance plans to find the one that best fits their specific needs. By doing so, they can ensure that their business is protected in the event of unexpected incidents.
