J.D. Power’s top small business insurance companies for customer satisfaction
National carriers that offer both commercial and consumer insurance dominate the list of above-average insurers in J.D. Power’s study. Erie Insurance, a regional company, and Philadelphia Insurance, which only sells business insurance, also earned above-average scores.
The average score of companies in the study was 697 out of 1,000.
| Insurance company | J.D. Power customer satisfaction score |
|---|---|
| American Family | 727 |
| State Farm | 719 |
| Allstate | 716 |
| Erie Insurance | 706 |
| Chubb | 703 |
| Philadelphia Insurance | 702 |
| Nationwide | 701 |
| Liberty Mutual | 696 |
| The Hanover | 692 |
| CNA Insurance | 690 |
| The Hartford | 685 |
| Farmers | 683 |
| Travelers | 679 |
| Corebridge Direct | 675 |
| Auto-Owners Insurance | 665 |
What are the top commercial insurance companies for customer satisfaction?
According to J.D. Power’s survey, the seven insurers with above-average scores for customer satisfaction are, in order:
- American Family: In addition to having the highest customer satisfaction score from J.D. Power, American Family has a better-than-average score for consumer complaints from the National Association of Insurance Commissioners (NAIC), an insurance regulatory-support organization, and offers a diverse selection of policies. However, the limited amount of policy information on its website may be a drawback for some consumers.
- State Farm: The largest general insurer in the U.S. offers extensive small business coverage options and a highly-rated mobile app and digital tools. Online quotes are not available; you must work with a local State Farm agent to get an estimate, or purchase or manage a policy.
- Allstate: This national carrier offers a wide range of small business insurance policies and add-ons. However, you cannot purchase a policy online, which some people may find inconvenient.
- Erie Insurance: This regional carrier only does business in 12 states. If it is available to you, it offers a variety of coverages for businesses as varied as auto service providers, contractors, religious organizations and restaurants.
- Chubb: Based on the number of direct written premiums, Chubb is one of the largest writer of commercial insurance in the U.S. It offers a variety of coverage options, high revenue limits for business owner policies and digital shopping tools. Limited online quotes are available, which some consumers may find inconvenient.
- Philadelphia Insurance: This insurer stands out from many of its competitors by offering commercial flood insurance, among other specialized coverage options. No online quotes are available, and business owners’ policies are limited to businesses with less than $5 million in revenue.
- Nationwide: It offers specialized liability insurance options and coverage for people who work less than 26 hours a week as freelancers. Downsides include the limited number of online tools and restricted availability of online quotes.
What is the J.D. Power Small Commercial Insurance Study?
The J.D. Power Small Commercial Insurance Study is an annual survey of small businesses focused on consumer satisfaction. For the 2024 study, 2,817 small business insurance customers were surveyed. A small business is defined as a business with 50 or fewer employees.
J.D. Power has conducted this study for 12 years.
What factors does J.D. Power consider when ranking business insurers?
Study participants were asked to rate their insurers from “poor” to “perfect” in seven categories. In order from most to least important, these were:
- Trust
- Premiums
- Product offerings
- Ease of doing business
- People
- Problem resolution
- Digital channels
How to evaluate a business insurance carrier
J.D. Power’s survey results are just one resource you should use when shopping for small business insurance. Other organizations that publish valuable research include:
AM Best is a credit rating agency focused on the insurance industry. It provides credit ratings and analysis for over 16,000 insurance companies. AM Best’s financial strength ratings range from A++ (Superior) to D-minus (Poor).
For a top-rated insurer, this means that AM Best has determined that the insurer is highly likely to meet its financial policy and contractual obligations. If you’re a policyholder, this means it is in a strong position to be able to pay any claims on your policies.
“AM Best ratings give you a picture of the carrier's financial strength. A carrier in a strong financial position is set up to take care of their claims well, and that's why things like AM Best ratings are important,” says Gregg Martin, president at Think Safe Insurance, an agency in Brandon, Florida.
The National Association of Insurance Commissioners represents insurance commissioners from all 50 states, compiling data, conducting research and helping to set industry standards and practices. The NAIC’s online Consumer Insurance Search allows users to research consumer complaint index scores. You can filter the results by type of insurance, state and year.
Scores are based on closed, confirmed complaints filed with a state department or commission of insurance. The NAIC market average is 1.0, and anything less indicates the carrier receives fewer complaints than typical for a company its size.
Consumer complaints are important to consider, especially for claims-related issues, Martin says.
“It's probably not something that should be the end-all-be-all of a decision, but being educated on what issues others have run into can help make you a smarter consumer. And that can apply to a lot of areas, not just insurance,” he says.
By analyzing J.D. Power customer satisfaction rankings, AM Best credit ratings, NAIC complaint ratios and online reviews, you can gain a fuller picture of what to expect when working with a particular insurance company.
Working with a small business insurance agent or broker
Working with an experienced agent or broker can also help you evaluate commercial insurance carriers. One of the big differences between an agent and a broker is that an agent represents an insurer, while a broker typically represents you, the client. Independent agents work with multiple insurance companies, while captive agents represent one company exclusively.
“Purchasing commercial insurance is a complex decision that requires aligning coverage and service levels with a business’s needs. A broker can serve as a trusted advisor in assessing risk management needs and selecting the right carrier,” McMurtrie says.
By working with a broker, you can get quotes from several insurers without having to submit your data multiple times. Many brokers specialize in specific industries, Martin says.
Working with a captive agent can be an option if your business is in an industry the insurer specializes in. “However, they usually aren't able to get quotes from multiple carriers,” Martin says.
Frequently asked questions
Why is customer satisfaction important in business insurance?
Customer satisfaction and service are important because they indicate what it will be like to work with a carrier, Martin says.
“You want to know that they will take care of their claims, answer questions, provide documents, etc. If others are happy with the experience they are having, there's a better chance that you will be satisfied as well. If people are having issues, you probably will too,” he says.
Martin adds a caveat: “If one carrier has some specialized coverages specific to your industry, it may be better to work with them, even if their overall ratings are a little lower – assuming they aren't terrible, of course.”
How accurate are J.D. Power insurance reviews?
As with any research, even from reputable institutions like J.D. Power, it is important to consider its possible limitations.
“They reflect a sample of carriers identified by respondents, often underrepresenting regional and smaller insurers. Due to small sample sizes, results can vary year to year and are typically reported at the national level, which may not reflect state-level performance,” McMurtrie says.
When looking at customer satisfaction studies, Martin offers the following advice:
“Keep in mind that the people answering this may have a hard time separating different issues. A lot of business insurance is handled through independent agents, which can be a great thing. However, a positive or negative experience with the agent may impact the scores of the carrier, even if that isn't directly a carrier issue.”
