Our take
Allstate is the No. 1 small business insurance company because of its strong customer service ratings, low number of complaints and financial strength. Allstate has several coverage options, including business interruption and cyber insurance, and has many optional riders – or add-ons – you can use to customize your coverage, including equipment breakdown insurance. Allstate had the best National Association of Insurance Commissioners’ complaint ratio of the companies we ranked and the third-highest J.D. Power score.
What makes Allstate different?
At first glance, Allstate may seem like any other commercial insurance provider, offering a wide range of policies to cover the various risks a company faces. What sets the company apart is its service. When you get an Allstate policy, you are assigned to an agent for the life of the policy. The agent's role is to get to know you, your business and your needs.
Allstate’s commercial insurance coverage
Allstate has a wide range of policies to cover most business risks, including:
- Business interruption: Covers lost income, rental payments and employee payroll if your business is forced to shut down temporarily.
- Business owner’s policy: Combines general liability and commercial property coverage.
- Commercial property: Covers damage to your business buildings and property, such as equipment, inventory and tools.
- Employment practices liability: Covers the legal defense and settlement of claims for things like employment discrimination, retaliation and wrongful termination.
- Equipment breakdown: Covers the costs to repair or replace equipment or machinery damaged by accident.
- General liability: Pays claims when you are liable for a third party’s injuries or property damage.
- Professional liability: Covers customer lawsuits and legal judgments stemming from accusations of unsatisfactory work, such as a missed deadline or mistake.
- Workers’ compensation: Pays medical bills and wages for workers injured on the job.
How much does Allstate small business insurance cost?
To get an Allstate-specific quote, you have to contact an agent. You can request a quote online. However, those quotes are provided by Allstate partner Insureon, a small business insurance broker. There is a bonus: The quotes you get from Insureon will also feature quotes from other insurance companies.
How to save on Allstate commercial insurance
Many major carriers offer business insurance discounts. You can ask your agent if you qualify for a better price if you have a security system or safety program in place. However, the best way to save on Allstate commercial insurance is to keep your claims history clean. The fewer claims you have, the lower your insurance will be.
How to buy Allstate insurance
If you want an Allstate commercial insurance policy, follow these steps:
- Locate an agent in your area.
- Contact the agent to review your insurance needs.
- Get a quote for insurance and assess the policies’ coverage.
- Pay the first premium due on the policy to get the coverage.
The importance of commercial insurance for small businesses
Every business is exposed to risks. A building or office can be damaged in a storm, customers can slip and fall, employees can make an error or a hacker can get into a company’s computers. Businesses are responsible for the settlement and legal defense of claims.
A small business can mitigate the cost of claims by having insurance.
Insurance provides financial protection against risks in exchange for a premium – what you pay an insurer for coverage. If you face a loss from a covered risk, you file a claim with your insurer. You’re on the hook for your deductible – the amount you agree to pay out of pocket when you file a claim – and then your insurance would kick in to cover the rest of your loss, up to your policy limit.
There are multiple insurance policies that cover different types of risks. For example, a store with a retail location needs general liability insurance to cover customer slips and falls while a professional service company, such as an accounting firm, needs professional liability to protect against mistakes made in the course of business.
Having a good broker can help ensure you get the right policies and coverage.
Bottom line:
Allstate is an excellent choice for commercial insurance. It offers strong customer service, is financially strong and has a low number of complaints. It also offers personalized service through its assigned agent model, giving customers one contact point for all their insurance needs.
Methodology
To identify the top 10 business insurers for small businesses, we used three trusted third-party metrics.
- J.D. Power’s 2024 U.S. Small Commercial Insurance Study, the results of which we used to calculate a star score – with 5 stars being the best. American Family had the highest customer satisfaction index – a score of 727 – and was assigned 5 stars. Star scores were derived for the remaining carriers relative to their customer satisfaction index.
- AM Best Financial Strength Ratings (FSRs), which we also used to calculate a star score. A++ is the best possible FSR and companies with that rating get 5 stars. Each rating notch below A++ is assigned a 1/3 star value – for example, an A+ receives 4.67 stars, and an A receives 4.33 stars.
- 2023 complaint index data from the National Association of Insurance Commissioners (NAIC) for both commercial property and commercial liability. Again, we used the finding to calculate a star score. We collected the complaint indices and annual written premiums for each company to calculate a weighted average for each company group by line. The lowest property and liability complaint indices were assigned 5 stars, the highest complaint indices were assigned 2.5 stars. Star scores were derived for the remaining carriers relative to their complaint indices.
We then weighed the overall score with one-third for J.D. Power, one-third for AM Best, one-sixth for NAIC commercial property and one-sixth for NAIC commercial liability.
The companies were then ranked on a curve – with the top score being 5 stars and all subsequent star ratings being determined by that top score.