Best Commercial Business Insurance Companies

Most commercial insurance policies are designed primarily for businesses with multiple employees and high annual revenues. Due to these algorithms, sole proprietors can end up paying sky-high prices for coverage they don’t need. Next Insurance is a relatively new player in the commercial insurance market, offering policies specifically for self-employed individuals who run their own businesses.

Next Insurance policies don’t include every type of commercial insurance. Still, they do provide the coverage that is most important to small businesses: general liability, professional liability, errors and omission insurance (E&O), commercial auto, tools & equipment, and even workers’ compensation. With these limited policy options, you may find that Next isn’t the most suitable choice for all types of businesses, but coverage is widely available in all U.S. states. The provider gives instant online quotes, a rarity in business insurance, and can even begin coverage the same day.

According to Next, self-employed businesses can save up to 30% compared to traditional commercial insurance policies and receive discounts of up to 10% when bundling multiple types of coverage. Next offers general liability plans that start at very low rates.

Since Next Insurance is such a young company, it hasn’t yet been rated by agencies such as AM Best or J.D. Power. However, it is backed by Munich R.E., which is rated A+ by AM Best.

Chubb is a global insurance provider that writes $40 billion in individual and commercial policies annually, offering a particularly impressive lineup of business insurance coverage. Chubb’s Customarq General Liability policy is well-suited for small businesses and multinationals alike in more than a thousand different industry classification codes. This policy covers just about everything from bodily injury and property damage to litigation and vendors, although, unlike some competitors, global coverage isn’t included and must be purchased separately.

For companies that need something more customized, Continuum from Chubb can be tacked onto any general liability policy or purchased individually. This additional protection covers items such as successor liability and discontinued products. Of course, businesses with less than $30 million in annual revenue can also take advantage of Chubb’s business owner’s policy, which combines general liability with commercial property and other industry-specific types of coverage.

Unfortunately, Chubb doesn’t offer online quotes for commercial insurance policies and requires all businesses to purchase coverage through an agent.

It’s also worth noting that Chubb scores among the best in the industry in financial stability and customer satisfaction. The provider holds an A++ financial strength rating from AM Best. Chubb also took second place in the 2022 J.D. Power U.S. Small Commercial Insurance Study.

Aside from general liability, commercial property insurance is the most universally carried business coverage you'll find since it safeguards everything from tools and equipment to office furniture from theft and damage. The Hartford offers commercial property policies that apply to any business, from entrepreneurs who work from home to large corporations with hundreds of millions of dollars in property to insure.

The Hartford’s 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 essential coverage remains the same, each policy is tailored toward the specific needs that change based on company size. For example, large property insurance claims are handled by specialized agents and include loss control services from The Hartford’s risk engineering team.

Commercial property quotes from The Hartford are generally available online, but you may need to work with an agent to get a quote if you have a large company or need specialized coverage.

Although policies are offered in most states, you won’t be able to purchase coverage if your business is in Alaska or Hawaii. You should also keep in mind that even though The Hartford writes commercial property policies for businesses of any size, this insurer is mostly geared toward smaller companies. We can see this small business focus in the fact that The Hartford wrote more small business premiums ($4.1 billion) than midsize and large business premiums combined ($3.3 billion) in 2022.

Progressive is easily the biggest commercial auto insurer in the United States, with policies written for over a million commercial vehicles as of 2022. While competitors impose limitations on certain vehicle types and industries, Progressive covers a wider variety than anyone else, offering policies for trucks, buses, trailers, and even personal vehicles that are partially used for business purposes.

Commercial auto policies from Progressive offer unmatched convenience, including 24/7 customer phone service and coverage in all 50 states. You can also save money on your business insurance policy when you bundle commercial auto with another type of coverage, such as general liability or a BOP.

According to Progressive, the average monthly premium for a business auto customer is around $188 per month. However, specific industries will pay far more; for example, commercial truck insurance through Progressive costs between $640 and $982 per month on average, and the average tow truck policy comes to $448 per month.

There are a few limitations to Progressive’s commercial auto policies. Specific types of vehicles are excluded, including golf carts and emergency vehicles such as ambulances and fire trucks; trailer-only policies are also excluded. You may find that fewer customization options are available compared to other providers. If you’re purchasing more than just auto insurance for your business, know that Progressive does outsource other types of commercial policies to third parties.

Since business insurance needs are so diverse, many providers can only offer limited coverage for specific types of ventures. Nationwide rises above the rest with policy options for both small and large businesses. Coverage includes just about every type of protection you can think of, such as traditional policies like general liability and umbrella insurance, additional protection from equipment failures and employment-related lawsuits, and even more modern options with cybersecurity protection.

Nationwide also receives accolades from several industry rating agencies. AM Best has issued an A+ (Superior) financial stability rating. Nationwide finished third in the 2022 J.D. Power Small Commercial Insurance study.

One of the few drawbacks to Nationwide is that online quotes are limited to five types of coverage. For more detailed policy information, you’ll need to call and speak with an agent. There are also a few small business industries that don’t get specific attention, such as hotels and real estate professionals. Finally, Nationwide commercial insurance is not available in Alaska or Hawaii, although coverage can be purchased anywhere in the continental United States.

Berkshire Hathaway is well-known as the parent company of GEICO. But the conglomerate also provides commercial insurance through two channels: biBERK, a full-service small business insurance company, and THREE, a newer endeavor that has made waves in the industry for offering a simple three-page policy.

Companies looking for a customizable business owner's policy can go through biBERK, which provides both general liability and property coverage. General liability covers property damage, bodily injury, product liability, and copyright-related matters. Property coverage will include building and leased spaces, business income, and contents inside a company's building. For additional customization options, business owners can choose from add-ons like cybersecurity and employment practices liability.

THREE offers a more comprehensive option, with all the elements of a business owner’s policy plus business interruption, cybersecurity, workers’ compensation, and commercial auto. This affordable, all-inclusive policy is ideal for small businesses that would otherwise need to combine a BOP with additional expensive coverage. We were quoted a reasonable monthly rate for a small retail store, including one vehicle and three employees (workers' compensation).

Even though both biBERK and THREE are newcomers in the industry, each is backed by Berkshire Hathaway, which has been in the insurance industry since the 1960s. However, this means business coverage isn’t yet available in all states. As of the time of publication, biBERK offers BOPs in 29 states, although professional liability E&O coverage is available in 50 states. THREE continues to add states to its coverage area, and the policy can already be purchased in many states that aren’t eligible for full BOP coverage through biBERK.

Because dram shop laws vary so widely by state, it’s difficult to find a single provider that offers widespread liquor liability coverage. Insureon is an online marketplace that makes finding the best coverage in your state easy with a single form that returns quotes from multiple providers. Although Insureon doesn’t underwrite any of its policies, the company is licensed to provide services in all 50 states and can often help you get coverage within 24 to 48 hours.

Insureon works with dozens of commercial insurance providers, allowing you to save time by filling out just one application to get multiple quotes for your business. While Insureon’s application is more complex than what you’ll find on some insurers’ websites, it’s still much more efficient than figuring out which companies offer liquor liability coverage in your area and asking for quotes one by one.

Policy pricing for liquor liability will vary depending on your location, how long you’ve been in business, and what percentage of your overall revenue comes from alcohol sales. According to Insureon, the median annual cost of liquor liability insurance is about $2,060 per year for bars, $545 per year for restaurants, and $775 per year for catering companies.