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Cutting corners with business insurance is one of the most expensive mistakes a company can make. Without proper coverage, businesses can find themselves on the hook for thousands of dollars to cover losses resulting from unforeseen events. For example, burglary and theft can cost an average of $8,000, while more severe events can add up to $50,000. Despite this, three-quarters of U.S. companies don’t have adequate insurance, and 40% of small businesses aren't even covered at all.
To mitigate risks, you must invest in an excellent commercial insurance policy. For example, you want to ensure your personal car is covered for business use or that your store is safe in case of a burglary.
Since insurance needs vary by company size and industry, we’ve rounded up the best commercial business insurance companies offering coverage. After reviewing 29 companies, these are the top contenders in each category based on industries covered, policy details, price, exclusions, customer service ratings and the surveyed customer experience of getting a quote.
Best Commercial Business Insurance Companies of 2023
- Best for Self-Employed Businesses: Next Insurance
- Best General Liability: Chubb
- Best Commercial Property: The Hartford
- Best Commercial Auto: Progressive
- Best for Availability: Nationwide
- Best Business Owner’s Policy: Berkshire Hathaway
- Best Liquor Liability: Insureon
For a free no-obligation custom quote, contact our partner Gallagher Small Business to speak with a small business expert who understands your needs: 833-810-5726.
Best for Self-Employed Businesses : Next Insurance
Next Insurance policies are created specifically for sole proprietors and small businesses. With policies starting at low monthly rates, Next Insurance cuts costs drastically by removing coverage that isn’t necessary for self-employed businesses, which puts Next Insurance at the top of our list for the self-employed seeking business protection.
Priced as low as 30% below comparable coverage
Instant online quotes
Same-day coverage available
Limited coverage options
Not suitable for all industries
Only in business since 2016
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.
Best General Liability : Chubb
Chubb’s industry-specific general liability policies offer tailored coverage to businesses of all types and sizes for a price that competitors can’t beat. This earns Chubb our nod for the best general liability coverage.
General liability insurance for over 1,000 business types
Insures companies of any size
Flexible options for supplemental coverage
Must be purchased through an agent
No online quotes
Global coverage requires extra policy
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.
Best Commercial Property : The Hartford
The Hartford has the best commercial property policies in our review, which provide affordable total coverage for everyone, from sole proprietors to large corporations.
Policies for small and large businesses
Fast online quote
Over 200 years in business
Some policies not available online
Less experience with larger businesses
Unavailable in three states
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.
Best Commercial Auto : Progressive
Progressive is the top commercial auto insurance provider in the United States and in our review, with more commercial auto direct premiums written than any other insurer. Coverage is available for just about every commercial vehicle.
24/7 claims service
Discount when you bundle coverage
Coverage in all 50 states
Some limitations on vehicles covered
Few customization options
Some commercial policies underwritten by third-party providers
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.
Best for Availability : Nationwide
Nationwide provides excellent coverage and service for the widest range of business types and sizes.
Tailored policies for many business types and sizes
Full range of coverage options available
Nearly 100 years in business
Limited online quoting tools
Smaller selection of industry-tailored coverage
Only available in 48 states plus Washington, D.C.
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.
Best Business Owner’s Policy : Berkshire Hathaway
Offering two traditional business owner’s policies (BOP) and one more comprehensive option, Berkshire Hathaway can provide unparalleled combined coverage for all aspects of your business and is the best in our review for business owner's policies.
THREE plan provides a more robust option
Discount when you pay annually
Not available in all states
Newer insurance provider
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.
Best Liquor Liability : Insureon
With liquor liability requirements that vary by state, Insureon is best equipped to help you find the right local provider for your restaurant, bar, retail store, or catering business. In our review, Insureon ranks first for liquor liability coverage.
Free online application compares quotes from multiple providers
Licensed in all 50 states
Get coverage within 24 hours
Doesn’t underwrite policies
Lengthy application asks in-depth questions about operations
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.
Next Insurance is our top pick for small business owners and sole proprietors. But every business has its own unique needs.
Companies like Chubb and Progressive get high marks in their general liability and auto coverage. No matter what your business insurance needs are, you’ll find the perfect coverage to protect your
assets. You can find several different types of coverage available when it comes to commercial insurance, depending on your specific needs.
Compare the Best Commercial Business Insurance Companies
|Company||Coverage Areas||24/7 Claim Service||Online Quotes Available|
|Next Insurance Best for Self-Employed Businesses||50 states||Yes||Yes|
|Chubb Best General Liability||50 states||Yes||No|
|The Hartford Best Commercial Property||49 states||Yes||Yes|
|Progressive Best Commercial Auto||50 states||Yes||Yes|
|Nationwide Best for Availability||49 states||Yes||Yes|
|Berkshire Hathaway Best Business Owner's Policy||Varies||Yes||Yes|
|Insureon Best Liquor Liability||50 states||Varies||Yes|
Frequently Asked Questions
What Is the Most Common Type of Business Insurance?
There are several common types of business insurance, including business interruption insurance and general liability insurance. Business interruption insurance, one of the most common, covers you in case something causes your business to shut down, like a flood or theft, and is part of your business owner's policy. General liability insurance covers claims someone might make due to damage or injury from your product or service.
What Does Commercial Insurance Cover?
Commercial insurance covers anything that could harm or shut down your business. Most commercial policies include coverage for lawsuits, property damage, theft, employee injuries, business interruption, and more. You can also buy coverage to fit your specific needs, like coverage for your personal car.
What Is the Difference Between Commercial Insurance and Business Insurance?
There is no difference between commercial and business insurance. These interchangeable terms are used to describe coverage purchased for large or small businesses, including general liability, business interruption, and loss insurance.
What Is an Example of Commercial Insurance?
One example of commercial business insurance is commercial property insurance. This insurance coverage protects any merchandise, property, or equipment from damage. For example, if lightning were to strike your warehouse, any of your tools, furniture, or electronics would be covered. It also ensures that you are covered if your property caused injury to a worker or customer.
To choose the best business insurance providers, we reviewed a total of 29 companies that offer commercial insurance policies. For each type of coverage, we looked at the policy details, industries covered, exclusions, and price to assess overall value. We also evaluated customer experience by walking through the process of getting a quote and taking third-party customer satisfaction ratings into consideration, such as J.D. Power.
Insurance Journal. "10 Most Common and Costliest Small Business Claims."
Insureon. "Survey: 1 in 3 small businesses faced top hazards last year."
AM Best. "AM Best Affirms Credit Ratings of Munich Reinsurance Company and Its Subsidiaries."
Businesswire. "AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries."
J.D. Power. "J.D. Power 2022 U.S. Small Commercial Insurance Study."
The Hartford. "The Hartford Fact Sheet."
Insurance Information Institute. "Facts + Statistics: Insurance Company Rankings."
Progressive. "Commercial Auto Insurance."
AM Best. "A.M. Best Places Provident Mutual’s Financial Strength Ratings Under Review Pending its Sponsored Demutualization by Nationwide."
biBERK. "Property & Liability Insurance."
Insureon. "Liquor Liability Insurance."