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Businesses, particularly those engaged in service provision, face the risk of being sued due to insurance claims, damages, or accidents that occur while services are being delivered. General liability insurance is designed to address these risks by covering such claims, thereby preventing the need for business owners to use personal funds.
The cost of acquiring general liability insurance for a business varies and depends on the required extent of liability protection, the nature and scale of the business, and other influencing factors.
This insurance is crucial for small businesses as it safeguards owners against unexpected events, such as fire damage to inventory, employee injuries on the job, or clients slipping and falling on the premises. Below, you will find our ratings for the Best Small Business Insurance Companies aimed at helping owners find the right coverage for their needs.
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11 Best Small Business Insurance Companies
- Next – Overall Best General Liability Insurance
- Hiscox – Best for Premium Deductibles rate
- CoverWallet – Best for Ease of Use
- Simply Business Insurance – Best Insurance for Comparing Quotes
- Progressive Business Insurance – Best Insurance with Mobile App Services
- The Hartford Business Insurance – Best for Comprehensive Coverage
- Acuity – Best for Customer Support
- Geico – Best Insurance with Mobile App Services
- Travelers – Best for Exclusive Insurance Offers
- BiBerk – Best for Premium Discount Offers
- Chubb – Best for Competitive Rates
NEXT’s general liability insurance offers cost-effective solutions for handling damage claims quickly. Typically, an insurance adjuster assesses the damages and decides within two days of filing a claim.
Pricing
Small businesses can access general liability insurance starting at as low as $11, with discounts up to 25% on premium costs. Businesses that have been operational for many years might pay up to $100 for premiums. Purchasing Business Owner Policies (BOPs) can lead to a 10% discount and expanded coverage.
Coverage Limit
With Next Insurance, the coverage limit can reach up to $1 million per injury or damage incident, with a total aggregate of $2 million for smaller businesses. Premium quotes and coverage limits can be conveniently obtained and managed through NEXT’s mobile app, which also supports monthly payments.
Deductibles
If a business is insured under NEXT’s general liability plan, deductibles are generally not required for resolving injury or damage claims unless the damages resulted from acts of negligence. In such cases, the business must pay specific deductibles as outlined in the policy.
Exclusions
Events not explicitly covered in the NEXT general liability insurance policy, such as injuries or damages arising from misconduct, negligence, the use of watercraft or aircraft, and war-related activities, are excluded. These must be managed with private finances as they fall outside the policy’s scope.
>> Get Covered Today with Next Insurance >>
Hiscox stands out as a top choice due to its competitive pricing and comprehensive coverage, offering cost-effective solutions for modern businesses.
Pricing
Hiscox’s pricing model is based on several factors including risk assessment, claims history, market conditions, and profit objectives. They strive to maintain competitive rates while ensuring their services are profitable and sustainable. This approach involves rigorous data analysis, potential risk assessment, and premium adjustments to provide fair pricing. Their premiums start as low as $22.50 per month.
Coverage Limit
Hiscox provides coverage limits ranging from $500,000 to $2 million, allowing businesses to select a limit that suits their needs and budget. Hiscox offers extra protection options such as professional and cyber liability insurance, catering to a wide range of business risks.
Deductibles
Hiscox offers a variety of deductible options, from $0 to $100,000, giving policyholders the flexibility to tailor their coverage. This feature allows businesses to effectively manage costs while ensuring adequate protection. The deductible limit can be chosen based on specific business requirements and risk tolerance levels.
Exclusions
It’s important to note some exclusions in Hiscox policies. For instance, coverage doesn’t extend to intentional acts or dishonesty damages. Furthermore, claims related to professional services might not be covered under general liability insurance and might require a separate professional liability policy.
Before purchasing insurance, it’s crucial to thoroughly review the policy’s exclusions to fully understand the coverage scope and limitations.
Efficient Online Services
Hiscox recognizes the demands of fast-paced business environments with their streamlined online quote process. You can quickly receive a quote within minutes and purchase your policy directly from their website, simplifying the insurance procurement process.
Hiscox’s approach combines affordability with substantial coverage options, making it an attractive choice for businesses seeking reliable insurance solutions.
>> Secure Your Business With Hiscox >>
CoverWallet provides free quotes directly to your business inbox and offers a variety of insurance packages, including general liability insurance, workers’ compensation, and business owner’s policies. Their general liability insurance specifically covers third-party injury and property damage claims.
For small businesses unsure about which insurance packages best fit their needs, CoverWallet offers expert guidance to help make informed decisions quickly.
Pricing
CoverWallet’s pricing starts at an affordable $39 per month, making it accessible for small businesses to protect themselves without dipping into personal funds. Prices may vary based on the specific needs of the business. Small businesses can request a quote through CoverWallet’s online platform or engage with customer support to find a tailored insurance solution.
Coverage Limit
CoverWallet offers various coverage limits tailored to the size of the business and the associated risks. For businesses not engaged in high-risk activities, this may influence the coverage limits, which typically range from $1 million to $2 million for small businesses.
Businesses requiring higher coverage limits will face higher subscription costs. Consulting with a CoverWallet advisor can help determine the appropriate coverage to avoid using personal funds for claims.
Deductibles
Businesses opting for CoverWallet’s general liability insurance are required to pay a deductible ranging from $500 to $1000. The amount of the deductible impacts the monthly premium cost, with options to adjust the deductible amount to potentially lower insurance costs.
Exclusions
CoverWallet excludes coverage for claims arising from non-business related events, such as parties, due to the increased risk associated with these activities. Businesses hosting special events may need to consider additional special event insurance to cover such occasions.
Overall, CoverWallet’s flexible and comprehensive insurance solutions provide small businesses with the necessary tools to safeguard against potential liabilities efficiently and affordably.
>> Secure Your Business With CoverWallet >>
Simply Business offers general liability insurance covering third-party accidents, property damage, and bodily injury. Established in 2005, Simply Business Insurance has become a prominent online insurance brokerage serving a wide array of insurance products tailored for small to medium-sized businesses.
Pricing
Simply Business Insurance provides general liability insurance starting at $21.25 per month. The premium costs are customized to meet diverse business needs, taking into account factors such as the business location, type of work performed, and staff size. Businesses interested in obtaining a precise quote can contact Simply Business directly to receive a personalized premium rate.
Coverage Limit
The specific coverage limits for Simply Business’s general liability insurance are not publicly disclosed. Businesses interested in exploring their options should visit the Simply Business website for a detailed quote or consult with their licensed insurance agents for tailored information.
Deductibles
Details regarding the deductibles for Simply Business’s general liability insurance are not publicly available. The deductible amounts will be provided in the personalized quotes prepared for businesses, based on their unique requirements and policy selections.
Exclusions
The general liability insurance from Simply Business includes several exclusions. It doesn’t cover:
- Damage to your own property
- Damage to a customer’s personal property in your care, custody, or control
- Incidents related to professional services
- Workers’ compensation or injuries to your employees
- Damage to your work
- Auto liability
- Any expected or intentional injury or damage
Businesses should review these exclusions carefully and consider additional coverage if needed to ensure comprehensive protection against potential risks and liabilities.
>> Secure Your Business With Simply Business Insurance >>
Progressive Business Insurance, a branch of The Progressive Corporation, one of the leading auto insurance groups in the US, provides a range of business insurance options underwritten by both affiliated and non-affiliated insurers. Due to the diversity in underwriting, claims cannot be filed online; the process for reporting a claim varies depending on the underwriting insurer.
Business owners seeking insurance quotes have several avenues: they can apply online, call Progressive directly, or consult an independent agent. Progressive also enhances customer convenience with a mobile app, which offers easy access to important features on the go.
Pricing
Progressive Business Insurance’s general liability coverage is typically priced at an average of $53 per month, with some businesses paying around $72 per month. Actual premiums may differ based on selected coverage limits and deductibles. Generally, choosing higher coverage limits increases premiums, but higher deductibles can reduce monthly costs.
Coverage Limit
The standard coverage limit for general liability insurance claims with Progressive is $1 million per occurrence. In some states, Progressive offers liability limits of up to $2 million to meet the specific contractual needs of certain businesses.
Deductibles
During the quoting process, businesses can select a deductible amount that best fits their needs, factoring in their industry, size, and number of employees. This allows businesses to balance their financial situation and risk tolerance effectively.
Exclusions
Progressive Business Insurance doesn’t cover medical malpractice or farm and ranch insurance. Commercial property coverage is only available through a Business Owner Policy (BOP).
Other exclusions under Progressive’s General Liability Insurance include:
- Injuries or property damage sustained by your own business
- Employee injuries
- Professional errors
- Damage involving commercial vehicles
It’s important for businesses to review these exclusions carefully and consider additional coverage as necessary to ensure comprehensive protection against potential risks and liabilities.
>> Secure Your Business With Progressive Business Insurance >>
The Hartford stands out as a trusted business insurance provider, with coverage options that cater to both small and large enterprises. They make it simple for policyholders to get quotes, adjust policies, request insurance certificates, and monitor claims through their intuitive online portal.
They also offer the ease of online claim submissions, even for those without an account. While small businesses can begin the quote process online, they might need an agent’s help to complete the application.
If you’re looking to start, The Hartford’s website has several pathways including direct contact, an online contact form, or through a local independent agent.
Pricing
Typically, small business clients at The Hartford spend about $67 monthly or $805 yearly on general liability insurance. For a precise quote tailored to your insurance needs, you can either directly approach The Hartford online or engage an independent insurance agent.
Coverage Limit
Their general liability insurance spans coverage limits from $300,000 to $2 million. You can start with an online quote but purchasing the policy will require a conversation with an agent. It’s crucial to evaluate the potential of facing lawsuits, the worth of your business assets, and other pertinent factors to snag the best deal.
Deductibles
The specific deductible amount for General Liability Insurance with The Hartford Business Insurance remains undisclosed. You’ll find detailed information on deductibles and pricing in the quotes provided by the agent.
Exclusions
The Hartford’s general liability insurance doesn’t cover risks linked to business operations or products, auto use damages, employee injuries (which are covered under workers’ compensation), or issues related to professional liability, business property damages, or employment practices.
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Acuity Insurance equips small businesses with a skilled team of adjusters dedicated to managing insurance claims efficiently. Various general liability insurance plans are available, covering property damage and bodily injuries, among other things.
These plans include coverage for medical expenses and either all or part of the costs needed for repairing damages. Acuity is a prime choice for small enterprises due to its flexible premium rates that accommodate businesses of any size.
Pricing
Acuity offers a range of premium options for general liability insurance. The available options, however, may vary depending on the business location and the specific insurance requirements. Businesses looking to leverage Acuity’s general liability insurance can expect annual costs ranging from $200 to $1000.
Coverage Limit
For a detailed quote tailored to your business needs, you can visit Acuity’s website or consult with a professional for expert advice. Coverage can reach up to $1 million annually for damages and injuries, with larger enterprises potentially qualifying for up to $50 million.
Deductibles
Deductibles under Acuity’s premium plans can go up to $5000, suited for businesses that need larger budgets to manage damage during operations.
For smaller businesses, deductibles start at $250. If you need a plan more tailored to your financial scope, seeking expert advice to customize your deductible is an option.
Exclusions
Acuity’s general liability insurance doesn’t cover certain types of damages. Exclusions include damage from nuclear, biological, or chemical incidents, pollution, and damages due to negligence or omission.
>> Secure Your Business With Acuity >>
Besides the usual injury cases, Geico also protects small businesses from slander, libel, and other reputational damages related to advertising. They offer a mobile app that makes it easy for small business owners to manage their accounts, handle payments, and access discounts.
Pricing
Geico customizes the pricing of its liability insurance to meet the diverse needs of businesses. Premium rates are determined after evaluating the business location, industry type, and staff size, which are provided during the quote request.
Coverage Limit
Geico offers various coverage limits. For bodily injury, the limit is $300,000 per person and $1,000,000 per event. Property damage claims are capped at $500,000, while personal and advertising injury claims have a limit of $1,000,000 per occurrence.
Deductibles
Geico’s general liability insurance plans come with a minimum deductible of $250 for low-risk businesses. There’s also a $500 deductible option for small businesses with a bit more flexibility in their budget.
For companies with larger budgets, premium plans with deductibles ranging from $1,000 to $5,000 are available.
Exclusions
Geico’s general liability policy excludes any pre-existing issues that were present before the insurance was purchased. Deliberately caused damages are also not covered. Geico may implement specific exclusions based on the chosen policy, tailored to the business’s needs.
>> Secure Your Business With Geico >>
Initially founded to provide accident insurance, Travelers Insurance has since expanded its offerings to include a wide range of products. Their services now encompass personal, commercial, and professional coverage for various damages.
Their portfolio covers costs related to vehicular repairs, replacing property or home fixtures post-fire, medical and veterinary bills, and support following the death of a loved one.
Travelers’ flagship business product, commercial general liability (CGL) insurance, shields businesses against lawsuits from customers or disgruntled parties. This includes protection against copyright infringements, slander, and other external claims.
Pricing
To gauge the cost of setting up a CGL premium, business owners should consult independent agents linked to Travelers Insurance. These licensed agents will provide quotes considering key factors. For the best rates, obtaining multiple quotes is advisable.
Coverage Limit
Businesses are free to set their coverage limits, but typical limits include $1 million for bodily injury and property damage, with a cumulative $2 million for all claims under the policy. To secure the best terms, consider the likelihood of lawsuits, the value of your business assets, and other relevant factors.
Deductibles
The specific range for Travelers’ deductibles is not publicly listed. Details on deductibles and pricing will be included in the insurance quotes.
Exclusions
Travelers Insurance doesn’t cover claims related to incidents that occur internally, such as those involving business owners or employees. Exclusions also extend to breach of contract, acts of violence, terrorism, and damage to business property.
>> Secure Your Business With Travelers >>
BiBERK streamlines the process of obtaining quotes and managing policies with its user-friendly online platform. They offer a variety of coverage options including general liability, property, business interruption, and cyber insurance.
Beyond standard insurance, BiBERK provides risk management tools, online safety training, and expert advice, underscoring their dedication to customer satisfaction and affordable rates, making them a reliable partner for small businesses.
Pricing
BiBERK simplifies the quote process through its efficient online platform, allowing businesses to tailor coverage to their specific needs while offering competitive rates that consider business size, industry, and location.
Prices start at $275, with most customers paying less than $1,000 annually. They offer flexible payment options, including monthly installments, and provide a policy management portal for easy access to policy documents and updates.
Coverage Limit
BiBERK designs its coverage limits to offer sufficient protection for small businesses at affordable premiums. These limits vary by policy type and the coverage choices made by the business owner. For instance, general liability policies might offer $1 million per occurrence and $2 million in total, whereas property policies could cover up to $500,000 or more.
Deductibles
BiBERK allows businesses to select deductibles that align with their financial capacity and risk tolerance, applicable to both property and general liability coverages. This flexibility helps businesses effectively manage their risk exposure.
The clear, straightforward presentation of deductible options ensures that businesses understand and can make informed decisions on their insurance coverage, tailoring it to safeguard their assets.
Exclusions
BiBERK’s policies do not cover specific risks, including cyber liability, pollution liability, professional liability, and employment practices liability, indicating that damages or losses related to these areas are not included under their standard policies.
>> Secure Your Business With BiBERK >>
Chubb’s insurance offerings span a range of areas, including property, casualty, liability, and specialty lines, ensuring a broad spectrum of risk protection. Their adaptable solutions allow clients to craft insurance plans tailored to their specific needs, offering robust coverage for homes, automobiles, businesses, and valuable assets.
Chubb leverages data analytics, artificial intelligence, and machine learning to enhance risk assessment and streamline operations, positioning itself as a leader in the industry by continuously adapting to the changing needs of its customers.
Pricing
Chubb’s pricing structure takes into account multiple factors that influence insurance costs, including the value and location of the insured property, along with specific risk factors. Their model also reflects industry-specific risks and historical loss data, with each risk being individually assessed by Chubb’s underwriters. Priced at $2,472 annually, Chubb’s strategy is designed to offer competitive rates while ensuring financial stability.
Coverage Limit
Chubb’s coverage limits provide crucial safeguards by setting financial caps to protect against potential losses. These limits are the maximum amounts Chubb will pay out per claim, ensuring comprehensive protection across property, liability, and other risks.
Deductibles
Chubb provides a range of deductible options, enabling policyholders to choose amounts that best suit their situations. Chubb offers options to lower or even eliminate deductibles in certain scenarios, enhancing protection. Deductible buy-down options are also available, allowing policyholders to reduce their deductible by paying an extra premium.
Exclusions
Chubb’s policy exclusions specify the risks and perils not covered, including intentional acts, war, nuclear events, and natural disasters. Coverage may also be excluded for high-risk activities like professional or extreme sports, and for specific types of property such as fine art or valuable jewelry.
Furthermore, Chubb’s exclusions may specify limitations on coverage for particular geographic areas or business types, clearly defining the boundaries and limitations of the policy.
>> Secure Your Business With Chubb >>
How I Ranked the Best Business Insurance for Small Businesses
When searching for the most affordable general liability insurance for your small business, it’s crucial to weigh several factors to ensure you secure the best coverage at a reasonable price. Here’s how to find cost-effective general liability insurance:
Assess Your Business Needs
Identify the specific risks and liabilities unique to your business. This insight will guide you in determining the necessary coverage limits and types of insurance needed. Consider elements like your business’s nature, size, and industry.
Shop Around and Compare Quotes
Gather quotes from various insurers to compare what they offer. You can reach out to insurance agents directly or use online platforms to collect quotes from several providers. Ensure you provide detailed and accurate information to receive precise estimates.
Evaluate Coverage Options
Examine each insurance policy’s coverage details to make sure it addresses the specific risks and liabilities of your business. Important coverages to look for include bodily injury, property damage, product liability, and completed operations.
Check for Additional Coverage
Review the deductibles and limits each policy offers. Opting for higher deductibles and lower limits can reduce premiums, but they should still align with what your business can reasonably handle.
Check for Additional Coverage
Some policies might offer extra coverages relevant to your business, like workers’ compensation insurance if you employ others. Assess these additional options to determine if they’re essential for your operations.
Seek Recommendations and Professional Advice
Consult with peers in your industry or insurance experts who specialize in small business coverage. They can offer valuable recommendations and help you navigate the complexities of insurance policies.
Bundle Insurance Policies
Ask about discounts for bundling various policies with the same insurer. Many providers offer incentives for combining general liability with other types of insurance, such as property or commercial auto insurance.
Review and Update Your Policy Annually
As your business grows and changes, so do your insurance needs. Regularly reassess your policy to ensure it continues to meet your requirements. Revisit these steps each year to potentially discover more suitable deals or better-suited coverage.
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Best Business Insurance for Small Businesses – Buyer’s Guide
What Are the Different Types of Small Business Insurance?
When purchasing insurance for a small business, the type and scope of coverage should align with your business’s specific size and operations. Here are some common insurance types for small businesses:
General Liability Insurance
This insurance safeguards your business against liability claims, such as bodily injury, property damage, and reputation harm like slander, libel, and copyright infringement. It also covers legal expenses, including attorney fees and any judgments or settlements.
Commercial Property Insurance
Also known as business property insurance, this covers the physical assets of your small business against incidents like fire or theft. It includes items such as computers, furniture, business records, inventory, and the physical building of your business.
Workers Compensation Insurance
Mandatory in most states, this insurance provides coverage for employees who suffer work-related illnesses or injuries. It covers medical care, rehabilitation, lost wages, and provides death benefits to the families of employees who die from work-related causes.
Commercial Auto Insurance
This type of insurance is crucial for vehicles used for business purposes. It covers cars, trucks, and vans against accidents and damage. A personal auto policy typically doesn’t cover vehicles when used for business, making commercial auto insurance essential.
Errors & Omissions Insurance
Also known as professional liability insurance, E&O covers liabilities arising from errors or omissions in the professional services you provide. This can include legal defense costs and damages awarded in such claims.
Inland Marine Insurance
This insurance covers property in transit over land, such as equipment and products, differentiating from marine insurance, which covers transport over water.
Cyber Liability Insurance
This insurance helps cover recovery costs if your business’s computer systems are hacked. It also covers associated expenses such as customer notification and credit monitoring after a data breach.
Short-Term Liability Insurance
Ideal for temporary projects, this insurance covers accidental property damage and bodily injuries to others. It also includes coverage for legal costs, judgments, and settlements in case of accidents during the project duration.
Short-term liability insurance is an advantageous option for:
- Seasonal businesses or those that operate for a limited time.
- Projects that involve providing advice to clients.
- Projects that require a specific type or amount of insurance.
This type of insurance is also known by various other names, including:
- Construction project insurance
- Project insurance
- One-day business insurance
- One-day general liability insurance
- Temporary business insurance
- Temporary commercial insurance
- Temporary liability insurance
Medical Malpractice
Also referred to as medical professional errors and omissions insurance, medical malpractice insurance covers liabilities from claims resulting in a patient’s injury or death. It addresses issues like medication errors, premature discharges, and unnecessary surgeries. This insurance also covers legal fees, judgments, and settlements if you’re sued for a covered incident.
If your small business involves handling medical equipment, providing patient care, or overseeing patient health, considering medical malpractice insurance is advisable. This coverage is particularly relevant for professions such as:
- Acupuncturists
- Counselors
- Dentists
- Licensed practical nurses
- Nurse practitioners
- Nursing students
- Optometrists
- Personal trainers
- Physical therapists
- Physicians
- Physician assistants
- Therapists
- Yoga instructors
Do You Need a Business Owners Policy (BOP)?
As a small business owner, you might want to look into a Business Owners Policy (BOP). This policy bundles:
- General liability insurance
- Commercial property insurance
- Business interruption insurance, which compensates for lost income if your business must close due to incidents like fires
Opting for a BOP can be more cost-effective than purchasing these coverages separately. It’s worth evaluating if a BOP suits your business needs.
What Does Small Business Insurance Not Cover?
There are certain situations where small business insurance doesn’t provide coverage, including:
- Flood damage to your business, which requires a separate commercial flood policy.
- Fraudulent and intentional acts.
- Wrongful termination, unless covered by an employment practices liability policy.
>> Explore Next Solutions for Comprehensive Coverage >>
Best Business Insurance for Small Businesses – FAQs
Final Thoughts
Securing the right insurance coverage is pivotal for your small business’s success and financial stability. With the various risks in today’s business climate, investing in general liability insurance is wise.
We’ve reviewed the top 10 most affordable general liability insurance options for small businesses, which should help you find a policy that fits your budget without sacrificing quality. These providers cater to the unique needs of small businesses, offering comprehensive protection at competitive rates.
Remember, the cost of insurance is minimal compared to the potential financial repercussions of a liability claim. You can protect your business assets, reputation, and overall livelihood with the right general liability insurance.
>> Explore Next Solutions for Comprehensive Coverage >>
Noah is an American copywriter on a mission to help clarify the nuances of the business world through unique insights stemming from backgrounds in both engineering and the medical field. When not working, you’ll likely find him running or traveling.
