Cheap business insurance providers offer essential financial protection from a variety of risks, providing business owners with peace of mind while minimizing cost. There are many types of commercial insurance options available to small businesses, such as business interruption insurance, which provides income replacement after a covered loss, may be included as well.
Many business owners also need professional liability insurance, commercial auto insurance, and worker’s compensation insurance, which can be purchased separately or added to customize your BOP.
The leading affordable cheap business insurance companies offer appropriate limits for your business, custom options to tailor it to your industry, and claims and customer service.
Choosing cheap business insurance providers
Business insurance offers financial protection for your company in case of unforeseen accidents, expensive lawsuits, and other challenges. Some policies are required by state and local laws, or you might need a certificate of insurance in order to secure a contract.
Figuring out which policies you need is only the first step. It’s also important to obtain your coverage from reputable insurance carriers.
However, keep in mind that when buying business insurance, the cheapest policies might not necessarily be the best fit for your business needs. Your coverage options can differ by more than price alone.
That said, here is a list of cheap and affordable business insurance providers:
Next Insurance
Next offers a wide array of commercial insurance coverage types, which can be purchased online for same-day coverage. It offers a business owner’s policy (general liability insurance and commercial property insurance), commercial auto insurance, workers’ compensation coverage, professional liability insurance, tools & equipment insurance, and more.
Next Insurance has a fast quoting system that makes it easy to get instant coverage entirely online without speaking to anyone. Through its app and new COI Analyzer, it can generate a nearly instant and free COI that you can share. Thanks to its lightning-fast convenience and range of policies offered, it is a great provider of fast coverage.
The company also offers a variety of digital policy management tools, including the ability to share a live certificate of insurance and quickly add an additional insured, free of charge. Monthly payments are available, and eligible customers can save up to 25% with discounts.1
Next Insurance has an A- (Excellent) financial strength rating with AM Best.
Pros
- Offers a live certificate of insurance for easy sharing
- Allows you to customize your business insurance policy with a variety of coverages
- 100% online quote and application with assistance available
Cons
- Fewer specialized coverages than some other companies
Hiscox
A dedicated small business insurer, Hiscox offers a wide range of insurance. However, for those who want commercial property, most of its offerings are for consultants. Some types that it covers are business, education, marketing, human resources (HR), information technology (IT), and management consultancies.
Hiscox offers a straightforward business owner’s policy (BOP) that can be customized with business interruption insurance, electronic data loss insurance, professional liability insurance, and more.
You can also choose standalone policies for professional liability and general liability insurance, and you can get coverage on demand for short-term projects. Plus, Hiscox allows you to pay for your business insurance policy in monthly payments, which can help freelancers better manage their cash flow.
Hiscox has an A (Excellent) rating with AM Best, indicating excellent financial strength; however, the company received somewhat more complaints than expected over the last three years given its size. This indicates that Hiscox may have issues with customer satisfaction, although the company did receive fewer complaints each year, indicating improvement. BOPs start at around $500 per year.
Pros
- Customization options for independent contractors
- Monthly payments with no fees
- Offers short-term liability insurance
Cons
- Higher than expected number of complaints with the NAIC
The Hartford
The Hartford has been around since 1810 and is one of the largest providers of workers’ compensation insurance in the country. Its commercial property policies are divided into two categories: small businesses with less than $200 million in total insurable value and large businesses that go over this threshold.
While the essential coverage for both remains the same, each policy is tailored toward the specific needs that change based on company size.
The Hartford is a top pick among small business insurance providers for the best workers’ compensation insurance. The company provides a large network of doctors and nurse case managers to help your employees get healthy, and pay-as-you-go billing options.
When you choose to pay as you go, your premiums are based on actual payroll rather than estimates, which prevents overpayment. The Hartford also allows you to easily start a claim online. Also, the company uses data analytics to provide injured workers with a toolkit to aid in faster recovery.
Pros
- Pay-as-you-go billing options
- Access to a network of over 1 million providers
- 2nd-highest financial strength rating
- Start claims online
Cons
- Poor J.D. Power ranking
Huckleberry
Huckleberry offers a restaurant endorsement as an add-on to its business owner’s policy. It is a bundle of food-specific coverages that includes spoilage coverage, food contamination insurance, and ordinance or law equipment coverage, among others. Plus, you can add workers’ comp, commercial auto, and liquor liability coverage to customize your business insurance policy as needed.
Hence, it comes as no surprise that small business insurance customers rave about Huckleberry’s customer service on Trustpilot. What’s more, most policies are underwritten by Markel or Chubb. Both companies have excellent financial strength ratings from AM Best. Like Next Insurance, Huckleberry offers an entirely online quote and application process that allows you to get coverage for your small business quickly.
Also, you can get a certificate of insurance online to share with clients in less than a minute.
Huckleberry’s BOP includes general liability, commercial property, and business interruption insurance and pricing is reasonable. For example, a BOP for a food truck starts at $37 per month.
Pros
- Policies underwritten by Markel and Chubb
- Excellent customer service reviews on Trustpilot
- 100% online quote and application
- Wide range of customization options
Cons
- Doesn’t offer employee benefits packages
Thimble
Thimble is a managing general agent (MGA) that works with multiple carriers to deliver small business insurance. One of the best commercial insurance companies, it offers commercial property insurance and has a certificate manager platform that is available for property managers. The system is entirely free for policyholders.
Thimble is a great option for small businesses that need quick, temporary, affordable small business insurance, particularly those looking to purchase coverage for an event or on an on-demand basis. The company’s business owner’s policy includes general liability, commercial property insurance, and business interruption insurance, and you can also add professional liability, workers’ compensation, and business equipment protection.
Its simple and quick quoting system and the ability to quickly change coverage online or on the app make it one of the best. This also includes the ability to add any additional insureds for the properties you manage.
Thimble works with several different insurance companies, each of which has an AM Best rating of at least A- (Excellent). Thimble policies are occurrence-based, which provides more robust coverage than claims-made policies. You’re covered for incidents that occurred while your business insurance policy was in force, even if you’ve since canceled it.
Pros
- Offers monthly and on-demand coverage options
- Liability policies start at $17 per month
- Offers event insurance
- Occurrence-based policies
- Excellent reviews on Trustpilot
Cons
- Doesn’t offer commercial auto insurance
Chubb
Chubb is one of the best commercial insurance companies that writes $40 billion in individual and commercial policies annually, offering a particularly impressive lineup of business insurance coverage. It is ideal for larger small businesses because it supports businesses with revenue up to $30 million and offers a very wide range of coverage options.
The company has relatively high revenue limits for its small commercial business owner’s policies and offers a wide array of customized endorsements for a broad range of industries. You can enhance your business owner’s policy with electronic data liability coverage, professional liability insurance, a variety of property add-ons, crime coverage, equipment breakdown coverage, earthquake coverage (in certain states), and more. Workers’ compensation, umbrella, commercial auto, and cyber risk coverages are also available.
Chubb can offer an instant quote, and policies are generated instantly, but you will need to speak with an insurance agent to start your coverage.
Chubb has an A++ (Superior) financial strength rating from AM Best and is ranked second for customer satisfaction in the J.D. Power 2023 U.S. Small Commercial Insurance Study.
Pros
- Supports businesses with up to $30 million in revenue
- Few complaints relative to Chubb’s market share
- Highest financial strength rating
- Many enhancements to customize a BOP
Cons
- Must speak with an insurance agent to start your business insurance policy
Biberk
BiBerk is part of Berkshire Hathaway Group, which has decades of experience in the commercial insurance industry. BiBerk’s underwriters are all rated A++ (Superior) by AM Best, indicating a superior ability to meet financial obligations to policyholders.8
What’s more, you can get a quote and apply to receive coverage instantly, entirely online. Policyholders have great things to say about the service and coverage on third-party websites like Trustpilot, where it has a 4.2-star average review.
BiBerk can meet the needs of most small businesses, offering many commercial insurance options, such as business owner’s policies, commercial auto insurance, workers’ compensation insurance, umbrella insurance, professional liability insurance, and general liability policies. You can add risk-specific endorsements and industry endorsements to your business owner’s policy, such as liquor liability and cyber liability coverage as well.
BiBerk BOPs start at about $500 per year.
Pros
- Backed by Berkshire Hathaway Group
- Online quote and application
- Excellent customer service reviews
- Dozens of endorsements to enhance a BOP
Cons
- Doesn’t offer group employee benefits
State Farm
State Farm offers business insurance designed for independent contractors, restaurants, professional services, and retailers, with paperless billing and autopay options. Commercial insurance products include BOP bundles, surety and fidelity bonds, and farm and ranch insurance.
The company’s BOP covers commercial property insurance and general liability insurance, plus loss of income, equipment breakdown, and money and securities protection at no extra charge.
You can add professional liability to the package as well. In addition, you can get commercial auto coverage, workers’ compensation insurance, and many more coverages. You can also work with State Farm to provide benefits for your employees, such as group life, disability, and health insurance.
State Farm has consistently ranked within the top three insurers for customer satisfaction over the last three years. It even has a higher NAIC complaint index than Chubb, and was awarded 856 out of 1,000 points for customer satisfaction in J.D. Power’s Small Commercial Insurance Study.
Pros
- Highest financial strength rating
- Customizable business owner’s policies with many coverage options
Cons
- Must speak with an insurance agent to start your business insurance policy
What is the cheapest type of business insurance?
The cheapest type of business insurance for you will depend on your personal circumstances, including your age, your occupation, and the type of business you have.
What is the most common type of business insurance?
Most businesses need general liability insurance, and your state’s laws may require workers’ compensation insurance and commercial auto insurance. But you may need other types of coverage depending on what your business does, where it operates, what kinds of assets you have and other factors.
How to find the cheapest business insurance providers
With so many companies offering nationwide coverage, there’s no shortage of insurance options in 2023. Of course, small business insurance costs should only be one factor in finding the right coverage. You’ll want to consider what the policy covers, along with its limits, deductibles, and exclusions.
After comparing online quotes for insurance, many business owners find it useful to consult with an insurance agent who understands what carriers have to offer.
A licensed agent can evaluate your insurance needs and help you find the right types of liability and property coverage.
Recommended Articles
- Business Insurance for Consultants: What It Is & How Much It Costs
- Business Insurance Quotes: Getting Insurance Quote Online
- Business Liability Insurance: Meaning, Types & Coverage
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