Best Business Insurance Companies for Small Business
Next Insurance
Best for: Ecommerce sellers who want the fastest, most affordable coverage online.
Next Insurance was built from the ground up for small businesses and operates entirely online. Their quote-to-bind process takes under 10 minutes, and certificates of insurance are available instantly from your account dashboard. This makes them particularly convenient for Amazon sellers who need to provide a COI quickly.
Available coverages: General liability, BOP (general liability plus property plus business interruption), professional liability, commercial auto, and workers compensation. Product liability is included within their general liability policies as products-completed operations coverage.
Pricing: General liability starts around $300 per year for low-risk ecommerce businesses. BOPs start around $500 per year. Workers comp starts around $500 per year. These rates consistently rank among the lowest in the small business market because Next's digital-only model eliminates agent commissions and manual underwriting costs.
Strengths: Lowest available rates for straightforward small businesses. Instant certificates with additional insured capability. Monthly payment options without a large annual premium. Easy self-service policy management. Amazon Insurance Accelerator participant, meaning their policies are pre-formatted for Amazon compliance.
Limitations: Automated underwriting means complex businesses or unusual product categories may not find coverage. Customer service is online-only with no local agents. Claims handling reviews are mixed, with some policyholders reporting slower response times for complex claims. Coverage options are somewhat less customizable than traditional carriers.
Hiscox
Best for: Service-based businesses and sellers who need professional liability alongside general liability.
Hiscox specializes in small business insurance with a particular strength in professional liability (errors and omissions) coverage. They serve over 500,000 small businesses globally and have a strong reputation for underwriting service-based risks that other carriers find difficult to cover.
Available coverages: General liability, professional liability, BOP, cyber insurance, and workers compensation (through partners). Hiscox is one of the few carriers that offers a combined general liability and professional liability policy, which is cost-effective for businesses that need both.
Pricing: General liability starts around $350 per year. Professional liability starts around $400 per year. Combined GL and professional liability policies start around $600 per year. BOPs start around $600 per year. Slightly higher than Next Insurance for general liability alone, but competitive for combined coverage packages.
Strengths: Excellent professional liability coverage with deep experience in service-based industries. Online quoting and binding with same-day coverage. Strong claims reputation with high policyholder satisfaction scores. Flexible coverage options that can be tailored to specific business needs. Good cyber insurance options that can be added to other policies.
Limitations: Slightly higher premiums than the absolute cheapest providers. Not all coverage types are available in all states. Commercial auto is not available directly through Hiscox. Some complex product categories may be referred to an agent rather than getting an instant online quote.
The Hartford
Best for: Ecommerce businesses that need comprehensive BOP coverage with strong property and business interruption protection.
The Hartford is one of the largest and oldest commercial insurance carriers in the United States, with over 200 years of history. They offer a full range of commercial coverage through both online channels and a network of independent agents. Their BOPs are among the most comprehensive available for small businesses, with broader coverage terms and fewer exclusions than many competitors.
Available coverages: General liability, BOP, workers compensation, commercial auto, umbrella liability, cyber insurance, and professional liability. The Hartford offers more coverage types than most online-first providers, making them a good choice for businesses that want to consolidate all their insurance with a single carrier.
Pricing: BOPs start around $600 per year. General liability starts around $400 per year. Workers comp pricing is competitive, especially through their partnership with payroll providers. Overall pricing is moderate, neither the cheapest nor the most expensive, with the value coming from broader coverage terms rather than rock-bottom rates.
Strengths: Comprehensive BOPs with broader coverage terms and fewer exclusions than budget carriers. AM Best A+ financial strength rating, meaning excellent ability to pay claims. Partnerships with payroll providers like Paychex for integrated pay-as-you-go workers comp. Multi-policy discounts when bundling several coverage types. Strong claims handling with a dedicated small business claims team.
Limitations: Online quoting is available but not as streamlined as digital-first providers. Pricing is not the lowest available for simple businesses. Some coverage types require working with an agent rather than self-service online. Best value comes from bundling multiple policies, making them less competitive for single-policy purchases.
Progressive Commercial
Best for: Businesses that need commercial auto insurance alongside other commercial coverages.
Progressive is best known for auto insurance, and their commercial auto offerings are among the most competitive in the market. They also offer general liability, BOPs, workers compensation, and umbrella coverage for small businesses. If your ecommerce business involves delivery vehicles or employees who drive for business purposes, Progressive's ability to bundle commercial auto with other policies is a significant advantage.
Available coverages: Commercial auto, general liability, BOP, workers compensation, and umbrella liability. Commercial auto is their core strength, with specialized coverage options for different vehicle types, usage patterns, and fleet sizes.
Pricing: Commercial auto starts around $1,200 per year for a single vehicle. General liability starts around $400 per year. BOPs start around $600 per year. Multi-policy discounts of 5% to 15% apply when you bundle auto with other coverages. Commercial auto pricing is consistently competitive, often the lowest among major carriers for equivalent coverage.
Strengths: Best commercial auto rates and coverage options among major carriers. Easy online quoting for most policy types. Multi-policy discounts for bundling auto with GL, BOP, or workers comp. Nationwide network of agents for personalized service. Strong claims handling for auto claims, which is their specialty.
Limitations: General liability and BOP offerings are less customizable than The Hartford or Hiscox. Not as focused on small business as Next Insurance or Hiscox. Professional liability and cyber insurance are not available through Progressive directly. Best value proposition is when commercial auto is part of the package; if you do not need auto coverage, other providers may be a better fit.
State Farm
Best for: Business owners who prefer working with a local agent and want to combine personal and business insurance.
State Farm is the largest property and casualty insurer in the United States, with over 19,000 agents nationwide. Their small business insurance includes general liability, BOPs, commercial auto, and workers compensation. The primary advantage of State Farm is the local agent relationship, which provides personalized guidance and claims assistance that online-only providers cannot match.
Available coverages: General liability, BOP, commercial auto, workers compensation, and umbrella liability. State Farm also offers personal auto, homeowners, life, and other personal lines, making them convenient for business owners who want all their insurance with one carrier and one agent.
Pricing: Generally moderate to slightly above average for commercial coverage. The agent model adds overhead that online-only providers avoid. However, State Farm's pricing is competitive for business owners who already carry personal insurance with them, as multi-line discounts can reduce the effective cost.
Strengths: Local agents provide personalized guidance and claims advocacy. Ability to bundle personal and business insurance for multi-line discounts. Strong financial stability (AM Best A++ rating). Extensive claims infrastructure with local claims adjusters. Agents can help navigate complex coverage needs that do not fit neatly into online quoting tools.
Limitations: No online quoting for most commercial policies, requiring an agent visit or phone call. Premiums are generally higher than digital-first competitors for equivalent coverage. Agent experience varies, and not all agents specialize in commercial insurance. Less competitive for simple online businesses that do not need the agent relationship.
Nationwide
Best for: Businesses that want comprehensive coverage with strong cyber insurance options through a traditional carrier.
Nationwide offers a full range of commercial insurance products with a particular strength in cyber liability coverage for small businesses. Their partnership with independent agents provides personalized service, while their online tools offer more self-service capability than most traditional carriers.
Available coverages: General liability, BOP, workers compensation, commercial auto, umbrella, cyber liability, professional liability, and employment practices liability. Nationwide offers one of the broadest coverage menus among traditional carriers, making them suitable for businesses with complex insurance needs.
Pricing: Moderate, generally in line with The Hartford and slightly above digital-first providers. Cyber insurance pricing is competitive when bundled with other policies. Multi-policy discounts apply for businesses that consolidate coverage with Nationwide.
Strengths: Comprehensive cyber insurance options integrated with other commercial coverages. Broad product menu covering nearly every small business insurance need. Strong financial stability. Independent agent network provides choice among agents. Good claims reputation for commercial policies.
Limitations: Online quoting is limited for some coverage types. Premiums are not the lowest available for simple businesses. Agent availability and expertise varies by location. Less focused on ecommerce-specific needs than niche providers.
Choosing Between Providers
The best provider depends on what you need and how you prefer to buy insurance.
If price is your top priority and your business is straightforward, start with Next Insurance. Their rates are consistently the lowest for simple ecommerce businesses, and the online experience is the most efficient.
If you sell services alongside or instead of products, Hiscox's combined general liability and professional liability policies offer the best value and deepest expertise for service-based risks.
If you need a comprehensive BOP with strong property coverage and business interruption, The Hartford's policies have broader terms and fewer exclusions than budget alternatives.
If you need commercial auto, Progressive's bundled auto and commercial policies offer the best combination of pricing and coverage options.
If you prefer personal guidance, State Farm or Nationwide agents can walk you through coverage options, help you understand your risks, and advocate for you during claims. This relationship has real value, particularly for first-time insurance buyers or businesses with complex needs.
Regardless of which provider you choose, compare at least three quotes before making a decision. Pricing varies significantly between carriers for the same coverage, and the 15 minutes it takes to get additional quotes can save hundreds of dollars per year.