Business is never risk-free. As a business owner, you might face a financial loss that can have devastating effects on your company’s profits. Even though you cannot eliminate the risks attached to running a business, you can at least take some steps to mitigate them.
If you read annual reports of any company, you likely noticed that companies usually maintain ‘provision’ accounts that financially secure them against sudden losses. Insurance is a step ahead to secure your business.
With the help of the services from some of the best business insurance companies, you can save yourself from heavy losses that occur due to unforeseen events.
You can get your business insured just like how you would get your physical assets, like your home and car, insured. In this guide, we listed some of the best commercial insurance companies you can choose for that purpose.
We wrote this review after comprehensive research and study. We thoroughly analyzed the companies’ ratings and coverage options to identify and list the best business insurance companies providing their services across the country.
Progressive commercial insurance is the best way to secure your moveable and immoveable financial assets. The company keeps an A+ financial rating, which means that it is capable of paying off its claim liability in a timely manner. It is available in 50 states, but coverage options may vary.
The company provides an extremely easy way to file claims. It also has so many discount offers for its loyal customers. The only drawback with Progressive is that it has expensive premiums.
Progressive is considered best for commercial auto insurance.
It also enjoys a good rating from customers on independent review sites, which means that it performs well when it comes to customer satisfaction. GEICO business insurance is the top pick for many small business owners.
GEICO has an A++ rating with AM Best, which speaks well of the financial strength of the company. It is also capable of paying off claims.
The only downside of that company is that its claim department operates during limited hours. You can file a claim between 8 a.m. and 8 p.m.
The following businesses usually purchase insurance policies from the company:
The insurance company provides general liability, auto, property, and workers compensation units. It has a dedicated customer service line, where customers can file a claim.
Their claim adjusters are located across the country to give you a better understanding of your state requirements and law regarding commercial insurance and claims.
Its insurance plans are beneficial for almost all companies –regardless of their size. So from startups to family-owned businesses and Fortune 500 corporations, every company can take advantage of Liberty Mutual business insurance.
The company’s customer support operates through local representatives who provide personalized services tailored to your specific market.
The company also has strong financial ratings and consequently has the ability to pay off claims. The two drawbacks of this insurance provider are low customer satisfaction ratings and lack of coverage in some states.
State Farm is the best overall small business insurance company and provides the following coverage plans:
Even though it is not available in all states, Nationwide enjoys a good amount of popularity among customers. It does lack when it comes to industry-specific coverage, but you can enjoy customizable add-ons and lots of discounts.
It is the best for customer satisfaction and has managed to receive good ratings from its customers.
The face to face interaction with Allstate agents offers that personal touch, and the company prides itself on its board scope of coverage options offered. As one of the leading insurance providers in the US, Allstate’s bundle of coverage options will cover many of your insurance needs, including auto, home, and even your pet.
But this insurance company is the best for the protection of your property. Whether you own the property or lease it or are working from home, Allstate business insurance will give you coverage for the following most severe perils:
The insurance company provides the following plans:
From small businesses to large corporations, the Florida based Ascendant Insurance Solutions specializes in placing commercial and personal lines insurance products and services in front of their customers with an emphasis on the Hispanic market.
As a licensed Managing General Agency, the company offers insight, knowledge and experience in their business markets and the industries they serve.
The company has coverage plans for all businesses, regardless of their size. Embracing the latest technology and software, Ascendant expands their web-based solutions, and getting a quote from them and buying an insurance plan is quite easy.
Farmers business insurance provides a wide variety of coverage options to small business owners, and with the lucrative discount offering on almost every product they have, this company is a viable option for your insurance needs.
Even though Farmers have many insurance products, the ones that they are Homeowners and Renters insurance. Judging by the research, they are flexible, fair and accommodating. Customer service and claim handling are two of the areas that need improvement.
Here is the list of the insurance plans that you can get from the company:
Some states make it mandatory for business owners to buy insurance. In that regard, Travelers commercial insurance provides certain types of insurance plans that allow a company to operate in a state legally. These plans include worker’s compensation insurance, management, and professional liability insurance, a business owner’s policy, etc.
As one of the largest insurance providers in the nation, with lots of coverage options and receiving fewer claim complaints from its customers, Travelers fits well among the top rated insurers in the US.
This company’s insurance products are tailored to fit the needs of the AARP Organization and are targeted to the over 50 demographic as their primary clients. The company also offers group benefits insurance and mutual funds.
Last year they ranked above average on Auto and Home Insurance Shopping, and Property Claim Satisfaction from JD Power Study.
The company provides general liability insurance to help them against claims like:
For a company of this size, Chubb has very few complaints than what is normally expected, specifically for the Home and Auto policies, but they are registering an increased number of complaints for their life insurance products.
They are a company that specializes in insuring high net worth families and their high end homes, vehicles and luxury assets. They offer white glove service and are not known for providing cheap insurance.
Businesses of all sizes can take benefit from the attractive insurance coverage plans offered by the company. These plans include:
Full service provider that covers comprehensive insurance products. Business Insurance, Auto, Commercial Property, Home, Umbrella and Workers Compensation for consumers of all sizes make the company suited to meet its customers unique needs.
Berkshire Hathaway is the best for commercial auto insurance. It has some outstanding features of this type of insurance, which include:
The Perfect platform for New and Small Business owners that love the personalized approach to their insurance needs. They offer an easy way to quote in just a half an hour with completing a tailored questionnaire from a wide range of top rated carriers before finding the best quote for a business.
An A.M. Best A rating, and the knowledgeable staff that gives recommendations based on their marketplace experience are the key advantages that make the platform worth mentioning on our list.
The company provides different coverage plans, in a broad range of industries that have their own key highlights.
Its general liability insurance is best for:
Its business owner’s policy (BOP) is best for:
Its professional liability insurance is best for:
Its commercial property insurance is best for:
Its workers’ compensation insurance plan is best for:
Hiscox business insurance is an approved Lloyd's cover holder that can underwrite surplus and special lines business on behalf of Lloyd's of London. The company specializes in offering insurance for a specific niche market for companies with fewer than 10 employees with an AM’s A grade for financial strength.
Although they have an overall positive review from the niche market, they have been exposed to occasional negative or “bait and switch” comments.
This insurance company provides protection against different covered perils for more than 180 businesses. Here are some of its best customizable insurance plans:
With accessible and nationwide coverage the policy options offered by CNA are best for construction, manufacturing, technology, healthcare, professional services, financial institutions, and other small businesses.
With a mixed bag of positive and negative reviews from customer feedback, but a strong A+ BBB rating and A rating from AM Best, has CNA at the very center for shopping insurance products.
One of the areas that they need to improve are their customer support and claim handling and the overall outdated website which can feel outdated.
All in all, a carrier that is worth giving a shot, especially if you are on the market for Business insurance, Cyber Insurance, Equipment Breakdown and Ocean Marine.
As a digital insurance broker, the company offers its products to small and legal businesses.
With tailored products for start-up companies and completely online quotes that can be submitted from anywhere, Embroker is a good option to consider. As possible downsides when going with this company are the customer experience and the fact that they offer products for only 8 industries.
The insurance provider is the best for tech-savvy customers who want to get done with the procedure of buying insurance in the shortest time possible. It provides the following features to its valuable customers:
Before obtaining corporate insurance, there are a lot of factors to consider. Whether or not an insurance company is worth investing in has nothing to do with a company’s years in business. The real worth of most commercial insurance companies is determined by their financial stability. Companies that have strong financial backing are in a better position to pay off claims.
Other qualities that are shared among top commercial insurance companies are good coverage options and competitive pricing.
Finally, they have good customer ratings. Regardless of how top-notch a company is, it has no standing on the market if it fails to satisfy its customers. In this sense, the customer always gets the last word.
To learn more about why business insurance might be right for you, continue reading.
Before we go into the details of buying insurance, let’s clarify, ‘What is business insurance?’
Business is your professional venture used to derive monetary and financial benefits through commercial activity. Your business is not risk-free. Regardless of your business’s size, it is prone to many risks – the intensity of the attached risks can be high, medium, and low.
One risk that almost all businesses face is the risk of fraud. As a business owner, you can never guarantee 100% that the creditors and debtors you come in contact with will not deceive you. While you cannot run your business with paranoia, you can act proactively and secure yourself against such circumstances.
In addition to fraud risks, there are so many other risks that a business might face. If you still ask, “What is the purpose of insurance for business?” Let’s look at the following examples of turbulent events.
A shipment of important inventory that you wait for met an accident. Or, you had a fire at your warehouse, and all production work was canceled. Or, there are riots in the city, and your office suffered an attack.
Business insurance comes in handy in all of the above scenarios. Business insurance protects your assets and ensures that you don’t suffer heavy losses. The following are some of the threats against which you can get insurance:
Let’s look at what each risk means:
In the world of business, the only thing that is constant is uncertainty. Many businesses are forced to shut down after not managing to deal with unforeseen circumstances. To protect themselves against the devastating effects of natural disasters or other perils, business owners can get business interruption insurance.
Under the business interruption insurance coverage, you can recover the amount of the lost income in the event that your business is forced to shut down during a covered period.
This insurance covers any natural disaster that makes it impossible for a company to stay open or other damage like a fire in the warehouse or the factory.
Let’s assume that your shop got destroyed by a tornado. If this was a covered peril, you would be paid for the income you might have received had your business not been affected by the tornado.
Even though the extent of coverage differs, most insurance companies cover the following operating expenses:
The following is the list of expenses that this type of insurance doesn’t cover:
Property insurance provides protection for your business assets. This insurance will financially cover you when you experience any asset damage.
A company can get severely affected in cases when an employee gets injured or seriously sick at the workplace. With this insurance coverage, you can pay for the medical expenses of your employees.
If your business suffers any losses due to theft, you could get it recovered through insurance. This is extremely advantageous for businesses operating in areas with a high crime rate.
Riots or other civil disturbances may lead to vandalism of both private and public properties. If your business gets affected, the insurance will take care of it.
Facing a lawsuit can be quite expensive for a large number of businesses. You wouldn’t want to spend your profits on lawsuits. With business insurance, you can get your legal expenses covered.
Your business has its own set of assets and liabilities. The basics of a business owner’s policy include property insurance and liability insurance. In case you have a fleet of business vehicles, you will also require insurance for your automobiles.
Here is a brief list of the different types of business insurance policies:
This type of insurance policy helps you protect your business property and physical location. This includes protection for:
So, in case of a fire, for example, this insurance will help you replace the damaged equipment.
Work-related injuries are quite common at workplaces. In that case, it is the responsibility of the employer to provide medical coverage. This particular insurance policy helps businesses provide medical benefits to their employees. The insurance covers the following:
Maybe you wonder, “What type of insurance does my business need?”. All companies are strongly advised to get general liability insurance. It can help pay for bodily injury and property damage claims. It also covers claims of slander and libel.
For example, in case a customer gets injured in your shop while shopping, the insurance can help you pay for the damage.
Your business operations can be affected by many circumstances. If you suffer a loss of income from wind damage, fire, theft, and other covered losses, the insurance can help cover your lost revenue.
For instance, in case you have to temporarily shut down your business after a covered loss, the insurance can pay you for the lost revenue.
Just like you would want your property to be safe and secure, you want your moveable assets to be saved from any kind of financial loss. Under this insurance, you will be able to recover any losses that your business automobiles suffered due to a covered peril.
What will happen if the product that you sold proves to be harmful to the end-user? A lawsuit. This is very common in the corporate world. For your business, you might need product liability insurance.
For example, many years ago, a woman sued a fast-food chain after she drank a hot beverage that the store offered and burnt her tongue. The food giant had to pay damages. It now also adds a caution warning on its cups to avoid such cases.
Just because you’re running your business from home doesn’t mean it’s risk-free. You will want your business equipment, including computers, printers, copiers, and other office furniture secured. Commercial insurance will help you protect your financial assets.
The next question to consider is, “how to get business insurance?” In this section, we will talk about some factors to evaluate before you get insurance for your business.
All companies have to deal with some form of business risk – the intensity and severity of this risk may differ from business to business. When you’re planning to get commercial insurance, you will have to access your risk levels.
Analyzing business risk levels and other factors can be quite tricky. Before you get insurance, you should seek professional guidance for the definition of potential business risk your business might be facing. They will give you a better understanding of the coverage you need and the premium you should opt for.
Under the employment insurance law, workers who lost a job can get temporary financial assistance. Before you apply for this coverage, you need to get yourself acquainted with the regulations for employment insurance laws in your state.
The main thing you have to look at when buying insurance is the accessibility of the company. Check how easy it is to get insurance or file a claim with the company. You don’t want to run from pillar to post for your claim and would be more inclined towards an insurance provider that is more accessible.
You should know what geographical areas your insurance covers. If you have a multinational business that expands worldwide or to different parts of a country, you will have to get insurance that covers a greater area.
There are a lot of factors that influence the cost of commercial insurance. There is no standard business insurance cost.
Some of the factors that affect your cost includes:
Business insurance is an important safety measure regardless of your industry sector or size of your company. In our article, we named the best business insurance companies on the market. Choose the ones that fit your needs and ask for a quote to move a step ahead in securing your business assets.
There are different types of insurance that you can choose for your business. Some of them are listed below:
You decide what type of coverage is the most important in your case. At a minimum, the above 3 insurance types should be covered by your insurance company.
It is nearly impossible that insurance companies would have included the world Covid-19 pandemic in their policies – nobody knew that the world would witness a catastrophe of this magnitude.
Your policies may have words like “any infectious disease pandemic” etc. If that’s the case, your insurance is more likely to cover you for the loss that you suffered during the pandemic.
Regardless of the size of your business, it is better to get liability insurance. This way, you are secure in case of liabilities being imposed upon you in a lawsuit.
Additionally, small businesses may search for investors and lenders. These people are mostly attracted to businesses that have insurance.
Yes, it is possible to combine multiple coverage options by the same provider under one policy. Your insurer will be in a better position to explain how this could be done.
Yes, there is business insurance that gives you protection against theft. You will have to contact your insurance provider to find out what will be the cost of this type of coverage.
Policy Advice is a website devoted to helping everyday people make, save, and grow money. While our team is comprised of personal finance pros with various areas of expertise, nothing can replace professional financial, tax, or legal advice.
Policy Advice is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.Policy Advice is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com
Stay In Touch
© Copyright 2022 PolicyAdvice.net. All rights reserved.