Business insurance typically covers a range of risks, including property damage (fire, theft, vandalism), liability (lawsuits for injury or negligence), workers’ compensation (injuries or illness on the job), and business interruption (loss of income due to a covered event). Some industries may require specialized insurance, such as professional liability (errors and omissions) for service providers or product liability for manufacturers.
Finding the right business insurance provider is critical for any entrepreneur in order to avoid potential severe consequences. In this article, we’ll outline how to identify your insurance needs and our top insurer recommendations to simplify your research.
Evaluating your insurance needs
Before you sign an insurance policy, you should have an idea of what type of coverage your business needs. Your business — and your risks — are unique and deserve tailored policies to protect you against unforeseen circumstances.
Before researching business insurance options, it’s important to ask yourself the following seven questions to better understand your needs and make informed decisions:
- What are the risks associated with my business? Consider potential liabilities, property damage risks, employee injuries, or legal issues that may impact your operations.
- What type of coverage is mandatory for my business? Some types of insurance, like workers’ compensation or liability insurance, may be legally required based on your industry or location.
- What is my budget for insurance premiums? Determine how much your business can afford to spend on insurance and how it fits into your overall financial plan.
- Do I have employees? If you have employees, you’ll need coverage like workers’ compensation or employer liability insurance.
- What assets need protection? Evaluate your business’s physical assets (e.g., equipment, inventory, and office space) as well as intellectual property or customer data.
- How much risk can I handle personally? Consider your business’s ability to handle risks and how much financial loss you could personally cover in the event of a disaster.
- Do I need specialized coverage? Depending on your industry, you may need tailored policies such as cyber liability, professional liability, or product liability coverage.
Answering these questions will help narrow down your search and ensure you’re looking for the right types of coverage.
Trusted business insurance options
Even with an idea of what type of insurance your business needs, finding a trusted provider can be overwhelming if you don’t know where to begin. We’ve compiled four trusted insurance providers to simplify your research.
Next
Founded by three small business owners, Next provides simple, digital, and affordable business insurance with quick and easy online quotes. You can purchase several policies in one bundle and even shop for coverage through their industry-specific policies. Additional benefits include:
- Online portal to manage your policy and submit claims online, anytime.
- Competitive pricing with no down payments or hidden fees, and options for monthly payment plans.
- A one-stop shop for small business insurance, with options tailored for 1,300+ professions.
What they cover: General liability, professional liability, workers’ compensation, commercial property and auto, business owner’s policies, and more
Best for: Businesses that need more than one type of insurance coverage or have specific industry requirements
How to apply: Online
Coverdash
One application lets you compare insurance quotes and purchase policies from the top insurers in the country. Like Expedia or Kayak for travel, Coverdash is an aggregator that shows you policies from 30+ major insurance carriers to ensure you’re finding the best price. Coverdash offers all lines of business insurance with a hassle-free application and seamless process. Additional benefits include:
- U.S.-based agents available to answer your questions.
- Coverage for any small- to medium-sized business, including start-ups.
- Average savings of 25% when using Coverdash.
What they cover: General liability, workers’ compensation, cyber, professional and management liability, and more
Best for: Business owners that want to easily compare quotes in one place
How to apply: Online
Progressive
Progressive offers commercial auto and property insurance, with customized coverage for small- to medium-sized businesses. It’s the top commercial auto insurer in the country with over 1 million commercial vehicles insured. Some of Progressive’s benefits include:
- Dedicated agents available 24/7.
- Commercial auto and commercial property policy bundles.
- Covered auto repair shop network.
What they cover: Commercial auto, commercial property, business owner’s policy, general liability, and more
Best for: Businesses that rely on vehicles for their work and prioritize commercial auto coverage
How to apply: Get a quote online and apply on the phone with an agent.
The Hartford
With over 200 years in business, Hartford offers an extensive range of insurance policies for small- to medium-sized businesses. In addition to its suite of core policies (e.g., business owner’s policy), Hartford allows you to add additional policies like data breach or professional liability to strengthen your coverage. Additional benefits include:
- Customizable policies suited to your business’s needs.
- Dedicated agents to support your business.
- Instant online quotes available.
What they cover: Business owner’s policy, general liability, commercial liability, workers’ compensation, cyber and data breach, and more
Best for: Small- to medium-sized businesses that prefer working with an insurance agent
How to apply: Get a quote online and apply on the phone with an agent.
About the Author
Kelly Hillock
Kelly Hillock is the content marketing manager for SmallBusinessLoans, where she writes and edits articles for small business owners. Kelly has over eight years’ experience in copywriting across a variety of industries, focusing on entrepreneurship and finance. She has a Bachelor of Arts in journalism from San Diego State University.
