6 Popular Small Business Insurance Companies (2022)

Small business insurance is an old profession: There is evidence of “under” contracts made by Babylonian merchants dating as early as 4000 to 3000 BC. This early form of business insurance allowed ship owners to take out loans to repair their ships, with the agreement that they would not have to repay the loan if the ship sank or one of the other listed “perils” occurred. Insurers also charge interest on loans to cover high risks.

While most small businesses today aren’t worried about their goods ending up at the bottom of the ocean, small business insurance is more important than ever, thanks to the many modern risks business owners face. Babylonian merchants were not worried about being sued, which can destroy a modern small business like a sinking ship.

What is small business insurance?

Small business insurance can protect small business owners from being financially responsible in the case of lawsuits, property damage, injuries, workers’ compensation claims or any other losses that may arise while operating. Different small business insurance companies offer different types of insurance—and different small businesses need different policies, depending on what they do, where they’re located, how many employees they have and a variety of other factors.

The world of small business insurance can seem complicated, filled with endless and complicated deals. You’ll need to shop around to find out what’s best for your company, but in general, you’ll need at least general liability insurance and workers’ compensation insurance. Here are 10 common types of small business insurance, which—aside from the first two—may or may not apply to your business, depending on what you do:

1. General liability insurance

General liability insurance provides—you guessed it—broad general protection. Most policies protect your business against injury and property claims, as well as libel and defamation.

2. Workers’ compensation insurance

If one of your employees is injured on the job, you can be held liable for their expenses and compensation. But if you have workers’ compensation insurance, that money comes out of your insurance company’s pocket.

Workers’ comp insurance can cover the cost of medical treatment, lost wages, disability and even funeral expenses. This form of insurance is mandatory in every state except Texas for businesses with employees who are not owners. Four states also require that you buy a policy from the state, not a private carrier.

3. Commercial vehicle insurance

Commercial auto insurance protects your business if an employee is involved in an accident while driving a work vehicle, such as a food truck, construction vehicle or delivery van.

4. Commercial property insurance

Commercial property insurance—also called casualty insurance or business property insurance—helps your business replace commercial property that is lost or damaged during operations. This can include real estate (such as office buildings), furniture, tools, inventory or other tangible assets that your company owns.

5. Commercial umbrella insurance

Commercial umbrella insurance is like an add-on to your existing insurance coverage. This is a good move if you expect that your normal insurance limits will not cover a large loss or liability.

6. Business income insurance

Business income insurance—sometimes called business interruption insurance—protects lost income if your business suffers property damage caused by fire, storm, or theft.

7. Employment practice liability insurance

Employment practices liability insurance—also called employer’s liability insurance—protects a business if an employee makes a claim of discrimination, sexual harassment, or wrongful termination against the owner or leadership.

8. Cyber ​​liability insurance

Data breaches and ransomware (ransomware that locks you out of your device or encrypts your data until you pay a ransom) can cause real harm to your customers and your business—and these attacks are on the rise. Liability insurance helps if you need to notify customers of an attack, compensate them in the event of a claim, and pay for free credit monitoring for affected customers.

9. Professional liability insurance

Professional liability insurance—also referred to as errors and omissions insurance—protects your business against claims that your advice or services caused a client financial harm. For example, a real estate agent who fails to note mold in a basement can be liable for damages.

10. Business owner policy (BOP)

A business owner’s policy (BOP) is a small business insurance package agreement. The details vary based on your company’s needs and what your insurance company offers, but a BOP often includes general liability insurance, commercial property insurance, business income insurance and workers’ compensation.

Choosing a small business insurance provider can be difficult because each company offers slightly different services and prices. You usually want to consider your needs, finances and risks before finding the company that best meets your needs. To help you choose, contact the provider you’re considering for a quote.

Below, find six popular small business insurance providers you might consider using, listed in alphabetical order.

1. Liberty Mutual

Liberty Mutual is one of the world’s largest insurance providers, and the sixth largest for property and casualty insurance. Although they are primarily known for property and auto insurance, other coverage options include:

• General liability
• Employee comp
• Auto and commercial fleet
• Environmental liability
• Equipment damage
• Excess and excess
• Healthcare liability
• Inland sea
• Management Liability
• Mergers and acquisitions
• ocean marine
• Professional liability
• Small business owner policy

2. Across the country

Nationwide has been around for nearly a hundred years—the company began in 1926 as the Farm Bureau Automobile Insurance Company. It builds on those beginnings to cover more than farmers and cars, including:

• Workers’ compensation
• Commercial vehicles
• Commercial property
• Commercial umbrellas
• Business income
• Employment practice liability
• Cyber ​​liability
• Errors and omissions
• Business owner policies
• Business liability
• Crime insurance
• Equipment damage
• Inland marine insurance
• Account not yet received
• Builder’s risk insurance

3. Progressive

Progressive Commercial is best known for its commercial auto insurance but offers a full range of small business insurance services. Protection options include:

• General liability
• Workers’ compensation
• Commercial vehicles
• Commercial property insurance
• Professional liability
• Cyber ​​insurance
• Employment practice liability insurance
• Business owner policies

Progressive also offers more specialized insurance, including liquor liability coverage, rideshare insurance, inland marine insurance, grounds, excess lines insurance, employee pet insurance benefits and employee health insurance.

4. State Farm

Each State Farm agency is independently owned, so it doesn’t just sell small business insurance, it’s also a small business owner itself. It offers industry-specific insurance for every stage of your business growth. Protection options include:

• Workers’ compensation
• Commercial vehicles
• Business owner policies
• Contractor policies
• Liability umbrella
• A bond of certainty and loyalty

5. Hartford

Hartford is one of the oldest small business insurance companies in the United States, with more than 210 years of underwriting. It began as a fire insurance company but today offers a variety of customizable small business insurance options, including:

• General liability
• Workers’ compensation
• Commercial car insurance
• Commercial property
• Business income
• Professional liability insurance
• Cyber ​​liability
• Business owner policies
• Industry specific insurance policies

6. Travelers

Travelers is well known for providing commercial property insurance. In addition to the US, it also offers coverage in the UK and Canada, making Travelers a good choice for international companies. Protection options include:

• General liability
• Workers’ compensation
• Commercial vehicles
• Commercial property insurance
• Commercial umbrellas
• Insurance of business income and additional expenses
• Cyber ​​liability
• Business owner policies
• Professional liability
• Employment practice liability

Small business insurance FAQs

What are the different types of business insurance?

There are different types of business insurance. Common policies include general liability, workers compensation, commercial auto, commercial property, commercial umbrella, business income insurance and industry specific insurance coverage policies.

What types of insurance do small businesses typically carry?

The most common types of insurance for small businesses are general liability, workers’ compensation, commercial property and business income insurance, which can be combined into a business owner’s policy (BOP).

How much does insurance cost for a startup business?

Progressive and Insureon report that the median cost of general liability insurance hovers around $500 per year. But the cost of insurance varies greatly depending on the size of your business, your line of work, your provider and the type of policy. A freelance graphic designer, for example, will pay less than a transportation company. Your best bet is to get quotes from several different providers for comparison.

Do you need insurance to run a business?

Although laws vary from state to state, the US federal government requires any company with employees to get workers’ compensation (except Texas for businesses with non-owner employees). Four states (North Dakota, Ohio, Washington, and Wyoming) also require that you purchase a policy from the state, not a private carrier.

source: https://www.shopify.co.id/blog/small-business-insurance