How we ranked the best small business insurers
To identify the top 10 business insurers for small businesses, we looked at the following factors:
- J.D. Power customer satisfaction scores: We reviewed the J.D. Power U.S. Small Business Insurance Study ranking, a major indicator of customer satisfaction. The average J.D. Power point score is 697 out of 1,000, and all the companies on our list were near or above that mark.
- National Association of Insurance Commissioners (NAIC) Index: The NAIC, an industry regulator, puts together an index based on the number of complaints a company receives relative to its market share. We prioritized companies with a lower-than-average complaint index, meaning an index below 1.00.
- AM Best ratings: AM Best, a credit-rating agency, evaluates the insurance industry. It issues Financial Strength Ratings based on its opinion of a company's ability to pay out future claims. We focused on companies with an AM Best rating of "A" or better.
We took these three components – J.D. Power, NAIC, AM Best – and gave them equal weights (33.33%) to calculate a raw score for each company. We then applied a curve to give the top company five stars and award successive companies on the list a star ranking based on that curve.
We limited our ranking to companies that offer insurance nationally.
Below, we look at the leaders and provide information on each company and its coverage options.
The 10 best small business insurers
Our list of the 10 best-rated small business insurance companies includes well-known consumer brands, such as Allstate and State Farm, and others, like Philadelphia Insurance, specializing in commercial insurance.
1. Allstate - 5.0
Our Take
Allstate is our choice as the best overall small business insurer 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 you can add to your policy to customize your coverage, including equipment breakdown insurance. Allstate had the best NAIC complaint rating of the companies we ranked and the third-highest J.D. Power score.
- High customer satisfaction ratings
- Low number of complaints
- Multiple coverage add-ons
- Policies cannot be purchased online
- Not all businesses are eligible for coverage
Coverages
Among the policies Allstate offers small businesses:
- Business interruption
- Business owner’s policy
- Commercial auto
- Employment practices liability
- Equipment breakdown
- Liability coverage
- Professional liability
- Property coverage
- Workers' compensation
Cost
To get an Allstate-specific quote, you have to contact an agent. Although you can request a quote online, it isn't from Allstate; instead, Allstate will refer you to small business insurance broker Insureon, its partner, which includes quotes from other insurers.
About the company
Allstate was founded in 1931 and is best known for its personal insurance lines; it serves more than 16 million households. However, it is also a major commercial insurance company, offering policies for small business owners. Policy options include business owner's policies (BOPs), general liability coverage, professional liability insurance, commercial auto insurance and workers' compensation.
2. Chubb - 4.7
Our Take
Chubb is the largest writer of commercial insurance based on direct premiums written, and with its coverage options and tools, it's easy to understand why it's so popular. The company insures a broad range of industries. It had the best possible AM Best rating, A++, and the fourth-highest J.D. Power score. Also noteworthy: While some companies limit small business BOPs to businesses with less than $5 million in revenue, Chubb offers policies for businesses with up to $30 million in revenue.
- Higher revenue limit for BOPs
- Digital shopping tools
- Multiple coverage options
- Separate site for some insurance types
- Slightly higher-than-average complaint index
- Online quotes are only available for some businesses
Coverages
Among the policies Chubb offers small businesses:
Cost
Chubb's rates tend to be affordable; its quotes for BOP coverage were under $500 per year, which is better than the average of the companies we evaluated.
About the company
Chubb is a global insurer based in Switzerland. The company traces its roots back to 1792 and operates in 54 countries and territories today. It serves large, mid- and small-sized businesses, providing commercial auto, BOPs, general liability, professional liability and other coverage options.
3. American Family – 4.6
Our Take
American Family was the top-ranked insurer for customer satisfaction in the J.D. Power U.S. Small Commercial Insurance Study and had a high AM Best rating, A. The insurer offers multi-policy and other discounts to make your small business insurance more affordable.
- Top-ranked for customer satisfaction
- Coverage for farms and ranches
- Policies for landlords
- Online quotes are not available for all products
- Limited policy information online
Coverages
Among the policies American Family offers small businesses:
- Business interruption
- Business owner’s policy
- Employment practices liability
- Equipment breakdown
- Liability coverage
- Professional liability
- Property coverage
- Workers' compensation
Cost
American Family doesn't have an online quote tool for many insurance products, and it doesn't disclose its pricing information online
About the company
American Family was founded in 1927. Aside from traditional business insurance policies, it also has coverage options for farms and ranches, including insurance for livestock, tractors and farm equipment. It has an A rating from AM Best. It issues policies in all 50 states.
4. Philadelphia Insurance – 4.5
Our Take
The company had the third-best NAIC score among the companies we ranked and the highest possible AM Best rating, A++. Also noteworthy: Typical commercial policies don't offer flood protection, and not all insurers provide commercial flood insurance, which makes Philadelphia Insurance stand out. Business owners can protect their businesses with one of three flood insurance programs. Philadelphia Insurance also offers a variety of other coverage options, including specialized insurance packages.
- Lower number of complaints than most
- Offers commercial flood insurance
- Specialized coverage options are available
- No online quotes
- BOPs are limited to businesses with less than $5 million in revenue
Coverages
Among the policies Philadelphia Insurance offers small businesses:
- Business owner’s policy
- Commercial auto
- Flood
- Management liability
- Professional liability
Cost
Philadelphia Insurance doesn't have an online quoting tool or provide pricing information on its website.
About the company
Philadelphia Insurance was launched in 1962. The Pennsylvania-based company serves business owners in most states, with the exception of Louisiana and New York. The insurer has an excellent reputation for customer satisfaction and strong financial strength ratings.
5. State Farm - 4.4
Our Take
State Farm is the second-place ranked company in the J.D. Power U.S. Small Commercial Insurance Study for customer satisfaction, and it also has the highest-possible financial strength rating from AM Best. For those who like to handle their policies online, State Farm has an award-winning digital portal and mobile app, making it easy to get help with your policy or claim.
- Specialized contractor coverage
- Highly rated for customer satisfaction
- Highly-rated mobile app and digital tools
- Policies cannot be purchased online
- Online quotes unavailable
Coverages
Among the policies State Farm offers small businesses:
- Business interruption
- Business owner’s policy
- Commercial auto
- Commercial property
- Employment practices liability
- Liability coverage
- Professional liability
- Workers' compensation
Cost
State Farm doesn't disclose its typical pricing or offer an online quotes tool.
About the company
State Farm was founded in 1922 and is the largest property and casualty insurer in the country. Through State Farm, business owners can purchase commercial auto, BOPs and specialized coverage, such as policies for contractors.
6. CNA Insurance – 4.2
Our Take
CNA had the second-best NAIC score of the companies we ranked. It also has a robust risk control program. Business owners can take advantage of the program to access tools, educational materials and guides on how to minimize risks specific to their industry. For example, there are risk control programs for accountants, real estate, healthcare and more.
- Risk control programs
- Lower-than-usual number of complaints
- Insurance bundles available
- Slightly lower-than-average customer satisfaction ratings
- No online quotes
Coverages
Among the policies CNA offers small businesses:
Cost
CNA doesn't have an online quoting tool or provide pricing details on its website. Potential customers must work with an agent to get details on policies and costs.
About the company
CNA is the seventh-largest commercial insurer in the country. Based in Chicago, the insurer serves business owners in all 50 states. Customers can access the company’s consulting services for specific exposures, such as business interruption and property risks.
7 (tie). The Hartford – 4.1
Our Take
The Hartford is a good choice for business owners who run their businesses out of their homes; it has policies specifically for home-based businesses. The Hartford is also one of the few insurers that allows you to submit claims and request policy changes online.
- Home-based businesses insurance
- Submit claims online
- Online quotes available
- Not available in Alaska or Hawaii
- Policies cannot be purchased online
Coverages
Among the policies The Hartford offers small businesses:
- Business income
- Business owner’s policy
- Commercial auto
- Commercial property
- Data breach
- Flood
- Employment practices liability
- General liability
- Workers' compensation
Cost
The company's website says its customers pay an average of $1,019 per year for BOPs, which is slightly higher than the average of companies we evaluated. Also something to note: The Hartford allows business owners to start the quote process online, although not all businesses are eligible for online quotes.
About the company
The Hartford is one of the oldest insurers in the country. The Connecticut-based company was founded in 1810 and today insures residents and businesses in all states except for Alaska and Hawaii. It has coverage options for small and large businesses, including sole proprietors.
7 (tie). Nationwide: 4.1
Our Take
Nationwide has an above-average J.D. Power score and is financially stable. Its coverage options for small and mid-sized businesses include BOPs for businesses with up to $5 million in sales. It also offers specialized coverage options that many other insurers do not, such as accounts receivable coverage in case you're unable to collect payments from a client.
- Accounts receivable coverage
- Part-time freelance coverage
- Specialized liability coverage
- Limited online tools
- Online quotes are only available for businesses
- Higher-than-usual number of complaints
Coverages
Among the policies Nationwide offers small businesses:
- Business owner’s policy
- Business liability
- Commercial auto
- Commercial property
- Cyber
- Employment practices liability
- Equipment breakdown
- General liability
- Professional liability
- Umbrella
- Workers' compensation
Cost
Nationwide allows some businesses to receive quotes online, but it doesn't offer online quotes in every industry or location. For example, we were unable to secure quotes online for a Florida-based business.
About the company
Nationwide was launched in 1926. Since then, it has grown to become a major insurer. It provides multiple commercial insurance products, including general liability, professional liability and workers' compensation.
9. Travelers – 4.0
Our Take
Travelers stands out for its exceptional Financial Strength Rating; AM Best gave the company an A++, the highest-possible rating, so you can be confident that it can afford to pay out any claims in the future. And, it has powerful online tools to manage your policy, including an online claims tool.
- Risk management tools
- Offers industry-specific insurance packages
- Online claims process
- No online quotes are available
- Limited details online
Coverages
Among the policies Travelers offers small businesses:
- Business owner’s policy
- Commercial auto
- Commercial property
- Cyber
- Employment practices liability
- General liability
- Management and professional liability
- Umbrella
- Workers' compensation
Cost
Travelers doesn't offer online quotes, so we were unable to secure pricing information.
About the company
Travelers is the second-largest commercial insurance company based on direct premiums written. The company's history dates back to 1864.
The company offers a variety of insurance products and packages of coverage for specific industries, simplifying the insurance shopping process. For example, business owners in the food services industry can use Travelers to find policies specific to restaurants and wineries.
10. Liberty Mutual - 4
Our Take
Liberty Mutual has one of the best NAIC scores of the companies on our list. It also offers several coverage options, including BOPs, commercial umbrella policies and niche insurance policies for contractors and fleet owners. It's best for those who prefer to work with an agent rather than handling everything online.
- Niche coverage available
- Risk control services
- Lower-than-usual complaint index
- Slightly below-average customer satisfaction ratings
- Quotes are only available through a third party
- Claims only submitted over the phone
Coverages
Among the policies Liberty Mutual offers small businesses:
- Business owner’s policy
- Commercial auto
- General liability
- Commercial property
- Umbrella
- Workers' compensation
Cost
Liberty Mutual partners with Tivly to allow customers to get coverage quotes. However, not all business types are eligible for online quotes; we received a notification that we'd have to speak with an agent to get pricing information. As a result, we were unable to secure typical pricing.
About the company
Liberty Mutual is the third-largest writer of commercial insurance based on direct premiums written. It has an A rating from AM Best. Based in Massachusetts and in business since 1912, the company serves customers nationwide.
How regional insurers measure up
Although the national brands get the most attention, be sure to include some regional insurers in your search. Many regional insurance companies have excellent reputations, competitive prices and responsive customer service. We classified regional companies as those that don’t do business in the majority of states.
However, if we included the regional insurers in our overall ranking, two – Erie and The Hanover – would have made the top 10.
Broadening the scope of the rankings to include regional carriers and then re-calculating the rankings based on the curve used for the national companies, the insurers stack up like this:
| Rank | Company | Overall stars (out of 5) |
|---|---|---|
| 1 | Allstate | 5.00 |
| 2 | Chubb | 4.78 |
| 3 | Erie Insurance | 4.66 |
| 4 | American Family | 4.62 |
| 5 | Philadelphia Insurance | 4.62 |
| 6 | State Farm | 4.45 |
| 7 | CNA Insurance | 4.36 |
| 8 | The Hanover | 4.35 |
| 9 | The Hartford | 4.26 |
| 10 | Nationwide | 4.24 |
| 11 | Travelers | 4.18 |
| 12 | Liberty Mutual | 4.09 |
Erie
Erie has a relatively small footprint. It only serves residents and businesses in 12 states – Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin – and the District of Columbia. However, it's a top-ranked small business insurer; it was ranked fourth in the J.D. Power U.S. Small Commercial Insurance Study, beating out major competitors including Chubb and Nationwide.
Erie offers a variety of commercial insurance products, including coverage packages for restaurants, auto service providers, contractors and religious organizations.
The Hanover
The Hanover operates offices in 28 states and the District of Columbia and offers a broad range of insurance products, including BOPs, cyber coverage, marine insurance and workers' compensation. It provides customers with robust resources, including sickness prevention, risk prevention and education on minimizing risk.
How to choose the right small business insurance for your business
There are many types of business insurance. When deciding what coverage to get and which insurer to work with, ask yourself the following questions to help determine what coverage you need:
- Is my business at risk of natural disasters? If you operate in an area prone to natural disasters like hurricanes, earthquakes, floods or winter storms, you may need commercial property insurance to cover your buildings, equipment and inventory.
- Is my business risky? If your business is in a high-risk industry, such as construction, you need extra liability coverage for your workers, along with workers' compensation.
- Do I handle customer or client data? Businesses that store client or customer data, including contact information or billing details, will need cyber insurance to protect against data breaches.
- Do I have customers visit my premises? Businesses that operate brick-and-mortar premises need general liability protection against claims of bodily injury.
- Do I give professional advice? If you or your employees provide professional advice, such as financial advisors or real estate agents, you'll need errors and omissions coverage to protect against any claims of negligence or mistakes.
What our expert says
Q: What should small business owners look at when deciding on an insurer?
Best small business insurance companies: FAQs
How much does small business insurance cost?
The cost of small business insurance can vary significantly by industry, company size and coverage. Our analysis finds that a basic business owner's policy ranges in price from $500 to $1,500 per year.
How often should I review my insurance coverage with these companies?
Like other insurance products, requesting quotes and comparing your options can be a smart way to save money on business insurance. How often you should shop around depends on your business.
"If you have a lot of unexpected growth, you should update your insurance agent. Outside of this, at the very least review your policy annually with your insurance agent," Gravier says.