USAA Business Insurance: All You Need To Know

For policyholders who need affordable rates, quality customer service, and benefits tailored to the needs of military members, USAA business insurance may be a good choice.

United States Automobile Association (USAA) is a popular name in the insurance industry and for a good reason. For several years running, USAA has topped customer satisfaction and financial ratings for auto insurance with some of the cheapest rates available. It is also active within the military community, helping active-duty and veteran military families with their unique challenges.

Today, it offers several types of insurance for families in addition to auto insurance, such as homeowners insurance, renters insurance, life insurance, and health insurance. It also includes several financial products, including bank and investment options. With easy online quotes and special resources specific to military life, USAA is an ideal insurance company for any kind of insurance.

Business insurance products available through USAA

USAA members can purchase a business owner’s policy, or BOP, along with:

General liability insurance.
Workers’ compensation insurance.
Professional liability insurance.
Cyber liability insurance.
Umbrella insurance.
Commercial auto insurance.

Business owner’s policy (BOP)

USAA’s BOP bundles three common types of insurance for convenience: General liability, commercial property insurance, and business income insurance.

General liability insurance

General liability insurance, also called business liability insurance, protects you and your assets when you or your company are responsible for paying someone’s medical expenses, attorney fees or damage.

Business liability policies typically exclude employee injuries, vehicle-related incidents and intentional acts of harm, which require insurance protection under different products. General liability insurance is included in USAA’s business owners’ policy, or can be purchased as an individual product.

Workers’ compensation insurance

Workers’ compensation insurance is required in many states if your business employs contractors and/or employees. This coverage can cover medical expenses and lost wages for workers who sustain work-related illnesses or injuries.

Professional liability insurance

If your professional service or advice goes awry, USAA professional liability insurance protects your small business from claims of negligence or financial harm. This type of insurance is also known as errors and omissions insurance, or E&O.

USAA professional liability insurance can be added on to any business insurance policy.

Cyber liability insurance

As cybercrime increases each year, cybersecurity insurance helps businesses cover expenses and costs associated with digital data breaches and other cyber breaches.

Umbrella insurance

Umbrella insurance provides an additional safety net of financial coverage. If your company is required to pay for a catastrophic claim, an umbrella policy kicks in once you reach the liability limit on another policy.

Commercial auto insurance

Applicants seeking USAA commercial auto insurance will be connected with insurance providers through USAA’s partner network.

Commercial auto coverage can include up to five standard components: Liability insurance, medical coverage, comprehensive, collision and uninsured or underinsured motorist coverage.

USAA lists several scenarios in which a small business could benefit from commercial insurance coverage:

You use your vehicle for business.
You have an ad for your business on your personal vehicle.
You have fleet vehicles or a trucking business.
You rent vehicles for your business.

If you are a USAA member who drives for a delivery or rideshare company like Uber or Lyft, you can add rideshare insurance to a personal auto insurance policy instead of purchasing commercial auto insurance.

Business income insurance

Business income insurance, also called business interruption insurance, is another component of USAA’s business owners’ policy. This pays out when your business operations are disrupted by circumstances out of your control. You can use business income insurance to pay for lost revenue, payroll, taxes, and more.

Commercial property insurance

A BOP from USAA also includes commercial property insurance, which covers expenses related to your physical place of business. This coverage protects your building, inventory, furniture and equipment if it is damaged or lost, as well as any signage, storage sheds, landscaping and fences.

Depending on the incident, as well as policy coverage, your commercial property insurance also could include property owned by others.

How much does USAA’s small business insurance cost?

The average cost of USAA’s commercial insurance policies ranges from $22 to over $129 per month, and is mainly based on your business’s: Industry, Location, Gross Sales, Employees and/or Payroll, Policy Limits, Endorsements, Deductibles, Experience & Claims History.

USAA Auto Insurance

USAA has been in business since 1922, serving the military community and their families. Because its auto insurance is only available to military and veterans, USAA is not ranked in J.D. Power’s auto claims satisfaction (had it been ranked, it would have tied for third). USAA is also the best option for military members in Insider’s guide to the best car insurance companies.

USAA offers comprehensive, collision, full, liability, and uninsured and underinsured coverage. It features a safe driving program with the opportunity to get discounts, telematics-enabled claims for faster processing times, and rideshare coverage for Uber and Lyft drivers. It also offers discounts for vehicle storage, safe drivers, good students, and completion of a driver’s training course.

Like most insurance companies, USAA also provides discounts for bundling your home and auto insurance.

There are four types of insurance coverage: liability insurance (required by most states), comprehensive, collision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.

USAA Homeowners Insurance

Because USAA’s homeowners’ insurance is limited to military and veterans, it’s not ranked in J.D. Power’s homeowners’ customer satisfaction survey. However, its members were surveyed, and had it been included on the list, USAA would have ranked No. 1. USAA also ranked No.1 on Insider’s guide to the best homeowners insurance companies.

USAA offers homeowners, condo, renters, and mobile home insurance. It also offers flood and earthquake insurance. It has a rider endorsement for home sharing if you rent your home or a room for short-term or long-term.

USAA gives discounts for Connected Home (a leak detection system), ADT security systems, and if you’ve been claims-free for at least five years. It also covers your personal belongings using today’s replacement cost, with no depreciation.

Homeowners insurance protects your dwelling, and personal belongings, and offers personal liability coverage for injuries that happen on your property.

USAA Renters Insurance

USAA renters insurance policies come with coverage for floods, tidal waves and earthquakes already included, a huge plus. You can add coverage for electronics that will cover drops and spills. Military uniforms and gear are covered worldwide for any problem covered by the policy, with no deductible.

There’s overseas coverage if you move or are deployed abroad.

Personal property: Personal property insurance is for items such as rugs, jewelry, electronics, furniture, dishes and pots and pans. It covers a variety of problems including damage from vandalism, fire, theft and the weight of snow and ice and even explosions.
Liability: Liability coverage pays for your legal defense if you are sued. It also pays for the resulting legal judgment or settlement. For example, this could occur if you accidentally cause harm to another person or another person’s property. So if a neighbor is visiting your apartment and trips and bumps his head, and you’re legally responsible, liability insurance can cover the bills, up to your policy’s limit.
Medical payments: Medical payments coverage will pay for small medical bills no matter who is at fault. This coverage is usually included in renters insurance policies. Coverage amounts start at $1,000.
Additional living expenses: If you are unable to live in your apartment because of a problem covered by the policy, such as an explosion, additional living expenses coverage will pay for hotel bills, restaurant meals, pet boarding fees and other extra expenses. Just hang on to your receipts, you will need them when making an additional living expenses claim.

USAA business insurance pros and cons

Pros	Cons
Far fewer complaints about general liability insurance were filed with state regulators than expected for a company with USAA’s market share, according to a NerdWallet analysis.	You can’t currently add an additional insured or file a claim online, though the company is working on adding those features.
You can get a quote online, and at least some businesses can purchase policies online.	Far more complaints about workers’ compensation insurance were filed with state regulators than expected for a company with USAA’s market share, according to a NerdWallet analysis.
You can access your certificate of insurance and track claims online.

Should you purchase USAA business insurance?

USAA may be a good fit for your business if:

You qualify for USAA membership. Typically, this is limited to members of the U.S. military, veterans, pre-commissioned officers, their spouses, and their children.
Your insurance needs aren’t too complex. USAA doesn’t offer specialized types of coverage like directors and officers insurance, employment practices liability insurance or liquor liability insurance — you’ll need to shop elsewhere for those coverages.
You want to manage your policy online. You can access your certificate of insurance online, and USAA told NerdWallet that you’ll be able to add an additional insured and file claims online beginning in 2023, though those options aren’t available as of this writing.

Is USAA a good insurance company?

USAA company could be an excellent choice for those seeking coverage with military-focused options, but it depends on your needs (and eligibility status). It scores well in customer and claims satisfaction in both the home and auto J.D. Power insurance studies. It also offers lower-than-average rates and a wide selection of insurance and banking products.

However, USAA products may not be available to you if you aren’t military-affiliated, and those who are eligible may not find USAA the best option if they prefer to do business with a local agency. Additionally, USAA’s Bankrate Score dipped from 5.0 to 4.0 from 2022 to 2023, primarily due to the latest evaluation of each company’s performance, as well as USAA’s move away from 24/7 customer service.

While this may not be an indicator of a trend, it may be worth considering. In the end, the best way to determine if USAA is the company for you may be to request a free quote.

USAA Business Insurance: All You Need To Know