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Last Updated: July 30, 2025
You’ve started a new LLC or corporation — what an exciting time! But don’t stop there: now it’s time to find the best small business insurance provider so you can protect your business.
Getting a business insurance policy can feel like a daunting prospect: there are dozens of providers, all with different price points, coverage options, and reputations to sort through. That’s where this guide comes in. We’ve reviewed some of the best small business insurance companies so you can find the right coverage for your business.
You might be thinking, “I just formed an LLC or corporation because of the personal asset protection. Why spend more money on insurance?”
You’d be right in thinking that an LLC or corporation limits your personal liability if something goes wrong with your business (provided your corporate veil is maintained). But a company’s legal structure doesn’t protect the business itself. Without insurance, an accident, mistake, or even a natural disaster could send your business into deep financial waters. Insurance can bridge the gaps and help you pay for the costs that come up when things go wrong.
Business insurance costs can be a substantial part of your budget, but a good policy can protect the investment of time, money, and reputation you’ve made into your company — so it’s well worth picking the right coverage.
Unfortunately, we can’t really answer this question for you because we don’t know the nuances of your company’s unique needs. But we can give you some guidance about different policy types that a lot of different businesses opt for.
For starters, the most common form of business insurance is general liability insurance, a policy that applies to a broad selection of business types and industries. General liability insurance covers common perils that can happen to any business with a brick-and-mortar location, including slip-and-fall accidents and personal property damage.
Commercial property insurance is another common coverage choice; this policy helps protect your business from damage to the buildings you own or rent for your company. It can also help protect your equipment. Considering that a company’s office or retail space is often one of its biggest investments, it’s wise to obtain coverage to protect it.
Workers’ compensation insurance is a must for businesses with employees. In fact, as of this writing, workers’ comp insurance is required in every state but Texas. If your employees get sick or injured as a result of their employment with your company, workers’ comp picks up the tab for things like medical bills, lost wages, funeral expenses, physical therapy, and more.
These are the three most common and important forms of small business insurance, but they’re far from the only ones. Professional liability insurance protects businesses that operate in regulated, certified professions against damages caused by mistakes they made in their field of expertise. Business interruption insurance (also known as business income insurance) replaces your lost business income due to a covered incident that prevents you from operating your company.
Commercial auto insurance is, of course, very popular for businesses that own or rent vehicles. Commercial umbrella insurance increases the liability limits of your other business insurance policies. Finally, cyber insurance (also known as data breach insurance) protects your business if your customers’ personal data becomes exposed in a data breach.
If you’re shopping for insurance, you might see the abbreviation “BOP” a lot. BOP stands for a business owner’s policy. This policy is (usually) a bundle of three different insurance types: commercial property insurance, general liability insurance, and business interruption insurance. Essentially, this business insurance covers your bases in a straightforward bundle. While it’s not right for everyone, it can be a great fit for a lot of business owners. Many of the insurance companies we’ve included in this list offer a BOP.
Now, without further ado, let’s talk about some of the best small business insurance options.
NEXT insurance was founded by three entrepreneurs in Palo Alto, California — small business owners at heart who recognize that good insurance for a small business is tailored and affordable. While NEXT is a newer insurer compared to some of the other options on our list, they’ve already established themselves as an award-winning insurer.
A nice perk to NEXT insurance is that they actually provide quick quotes based on your industry. Whether you’re starting a beauty business, a food truck, a daycare, or something else, NEXT can help you get the policies you need in a convenient and quick bundle.
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Chubb Insurance was founded in 1985. Chubb offers a wide variety of policies, including BOP, umbrella policies, workers’ compensation, commercial auto, management liability insurance, and even cyber insurance to protect your business from internet-based threats.
Originally founded way back in 1810, The Hartford is one of the oldest and most trusted business insurers in the world. They draw upon their centuries of experience to deliver consistently reliable insurance policies for both large and small businesses. If you want to work with a proven insurance company that provides a variety of policy options — BOP, commercial auto, commercial umbrella, professional liability, cyber, and workers’ comp, to name a few — then Hartford can be a viable option.
Nationwide is another established legacy carrier — they’ve been in business since 1926, so they’re actually approaching their one hundredth birthday. One perk of using a large legacy insurer like Nationwide is the huge variety of policies it offers. They’ve got the basics: BOP, commercial property, commercial auto, workers’ comp, professional liability, and commercial umbrella insurance. But they also offer more specialized coverages like crime, employment practices liability, inland marine, and accounts receivable insurance, to name a few.
Hiscox is another legacy insurer that makes our list of insurance options. While the brand does offer some personal insurance policies, its primary focus since its inception in 1901 has been business insurance. So if you’re seeking a policy, you may want to talk to one of their commercial insurance agents.
A big selling point is that Hiscox is a true industry leader when it comes to cyber liability insurance. Hiscox started offering this form of insurance earlier than most competitors, and it includes a complete collection of coverages, including breach costs, cyber extortion, cyber crime, business interruption, data recovery, and digital media.
If you’re looking for small business insurance coverage from a proven provider, State Farm is another popular name — they’ve been in business since 1922. State Farm is also best known for serving small businesses over large ones.
State Farm offers just about every business insurance policy under the sun. The company offers general liability, commercial property, commercial umbrella, workers’ compensation, and professional liability insurance. Additionally, it provides many specialty policies like employment practices liability and inland marine insurance, in addition to hundreds of industry-specific options.
Founded in 1912, Liberty Mutual is one of the larger insurers in America. And when it comes to business insurance, Liberty Mutual is well-known for its excellent umbrella policies; if you want extra coverage beyond the typical commercial liability insurance coverage, they could be a good fit.
Odds are, when you think of Progressive, you think of Flo perkily telling you to bundle your home and auto insurance policies to save money. Business insurance probably isn’t what comes to mind.
Progressive doesn’t directly underwrite business insurance policies. Instead, it provides access to BOPs, general liability, business interruption, commercial property, professional liability, cyber, and workers’ compensation insurance policies through affiliated companies in the Progressive Advantage Business Program.
But Progressive is known as an option for business insurance and especially business auto insurance. If your company owns or rents vehicles, then Progressive is a good choice for insurance.
Long story short, there are lots of companies that offer good business insurance options. All of the options included here have pros and cons, so you’ll need to weigh the options that best suit your business’s coverage needs.
If you aren’t sure where to start, pick three companies, and then request quotes from them. It’ll take some time, but this will help you find the lowest rates for the coverage you need. We hope this guide has helped you find some viable options to pursue. Good luck!
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Ultimately, it depends on your business. At a minimum, most LLCs should consider general liability insurance to cover common risks like bodily injury or property damage. If your business owns or rents a physical space, commercial property insurance can also be important. Businesses with employees usually need workers’ compensation insurance, which is legally required in most states. Depending on your industry, you may also need additional policies like professional liability, commercial auto, or cyber insurance.
The cost of insurance for an LLC varies based on factors like your industry, location, number of employees, and the types of policies you need. For example, general liability insurance can start around $20 to $30 per month for low-risk businesses, while more specialized or comprehensive policies will cost more. Many insurers offer bundles or discounts for multiple policies. Getting quotes from multiple providers is the best way to estimate your actual costs.
One of the biggest factors that affects your insurance costs is the size and nature of your business. For example, if you’re a small business in a low-risk industry, it’s possible to get that level of coverage for $25-$30 per month. Higher-risk businesses, such as contractors, can expect to pay significantly more, with some paying more than $100 per month to get that coverage.
The insurer you choose also affects your rates. For example, the average Hartford customer pays $69 a month for $1 million in coverage, and the average Progressive customer paid $85 per month for a liability policy in 2024. The best way to learn how much your insurance would cost is to contact several providers and request a quote.
General liability insurance is a great starting point, but it might not be enough for every business. General liability covers common risks like third-party bodily injuries and property damage, but it doesn’t cover other things, such as professional errors. You may also need commercial property, workers’ comp, professional liability, or cyber insurance, depending on your business activities. A tailored policy mix can be the safest way to protect your business.
A Business Owner’s Policy (BOP) bundles three essential coverages: general liability, commercial property, and business interruption insurance. It’s a convenient and often cost-effective option for small businesses that need broad protection in one package. Many small business owners find that a BOP covers their basic insurance needs, but it’s not right for every business. If your company has more specific risks, you may need to add or adjust your coverage beyond a standard BOP.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The ZenBusiness Visa Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. *Your deposits qualify for up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions regarding the sweep program.
Written by ZenBusiness Editorial Team
The ZenBusiness Editorial Team has more than 20 years of combined small business publishing experience and has helped over 850,000 entrepreneurs launch and grow their companies. Our writers and business formation experts are dedicated to providing accurate, practical, and trustworthy guidance so business owners can make confident decisions.
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