Our take
It’s easy to understand why Chubb, with its coverage options and tools, ranks No. 2 on our list of the best small business insurers. The company works with a broad range of industries. It had the best possible AM Best rating, A++, and the fourth-highest J.D. Power score for customer satisfaction. Also noteworthy: While some carriers limit business owner’s policies to companies with less than $5 million in revenue, Chubb offers policies for businesses with up to $30 million in revenue.
What makes Chubb different?
Chubb is the largest writer of commercial insurance based on direct premiums written. The company stands apart from the competition in what risk it takes on. It takes on small businesses with up to $30 million in revenue for business owner’s policies – insurance that provides coverage for business disruption, liability and property risks in one package. Chubb also underwrites businesses in a wide variety of industries – construction, energy, hospitality, manufacturing and transportation, to name a few – making it easy for a small business owner to find the coverage they need.
Chubb’s commercial insurance coverage
Chubb offers a variety of policies, including:
- Business owner’s policy: Combines general liability and commercial property coverage.
- Commercial auto: Offers coverage for vehicles being used for business purposes.
- Commercial property: Covers damage to your business buildings and property, such as equipment, inventory and tools.
- Directors and officers: Protects directors and officers from liability claims against them when they sit on the board of a company or nonprofit.
- General liability: Covers the cost of third-party injuries or property damage that happen at your place of business.
- Professional liability: Covers customer lawsuits and legal judgments stemming from accusations of unsatisfactory work, such as a missed deadline or mistake.
- Umbrella: Offers extended liability coverage for policies such as general liability and commercial auto.
- Workers’ compensation: Pays the medical bills and wages for workers injured on the job.
At the very least, a business should have a general liability and workers’ compensation policy. If it is a service provider, it should consider adding professional liability to the mix. Business owners may also consider commercial auto insurance.
How much does Chubb small business insurance cost?
Chubb’s policies tend to be reasonably priced, with many of its BOPs quoted at under $500 per year. This is on par and below what many competitors are pricing policies at. Of course, the price will depend on the policy you get.
How to save on Chubb commercial insurance
Chubb offers discounts on its commercial auto insurance. You can get multi-car and anti-lock brake discounts for your vehicle. Also, Chubb’s SafeLine mobile app tracks driving behavior and offers discounts based on good driving habits.
Small businesses that have risk-mitigating practices, such as safety programs, may qualify for other policy discounts. Talk to an agent to see what you are eligible for.
How to buy Chubb insurance
Chubb makes it easy to buy a policy:
- Use the Chubb website to find an agent.
- Contact the agent to get a quote.
- Discuss the coverages and premiums.
- Pay the first premium due to start a policy.
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 insurance policy can mitigate the cost of claims.
It 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’ll 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 different types of insurance policies to cover different types of risks. For example, a store with a retail location needs general liability insurance to cover customer slip-and-fall accidents 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 agent or broker can help ensure you get the right coverage.
“A great agent goes beyond simply selling policies – they actively engage in key aspects of your risk management, including loss control efforts, claims management and risk transfer strategies,” says Chris Peterie, chief executive of Tower Street Insurance in Dallas, Texas
Bottom line
As a small business, you can’t go wrong when working with Chubb. It has a good reputation when it comes to servicing policies and claims. And many businesses can benefit from Chubb’s high threshold for BOP coverage.
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.