Best options for buying small business insurance in 2022

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When comparing business insurance quotes, it’s important to choose reputable insurance companies. The following are some of the best providers for the most necessary and affordable types of small business insurance coverage.
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Business insurance offers financial protection for your company in case of unforeseen accidents, expensive lawsuits, and other challenges. Some policies are required by state and local laws, or are required in order to secure certain contracts.

Choosing which insurance products you may need is only the first step. It’s also important to obtain your coverage from reputable insurance companies.

When comparing business insurance policies, keep in mind that the cheapest policies might not be the best fit for your business needs. Your coverage options can differ by more than price alone.

Let’s take a look at the different types of coverage for small business insurance in 2022 and some of the top insurance providers.

General liability insurance

General liability insurance covers common business risks such as bodily injuries, customer property damage, and advertising injuries. This business liability insurance is often the first policy purchased by small business owners, regardless of their type of business. General liability coverage is typically required for commercial property leases.

If someone slips and falls at your business, or if you’re sued by a competitor for libel or slander over something you’ve stated, commented on, or voiced, a general liability policy would help protect your business income by covering your legal fees and liability claims.

Consider these carriers

The Hartford is worth considering for your general liability coverage as it serves more than 1 million small businesses and was named one of the world’s most ethical companies twelve 12 times by the Ethisphere Institute.

It has a solid financial rating of A+ from the credit rating agency, AM Best. The Hartford also has more than 200 years of experience and offers several lines of business insurance products, which allows its customers to buy several policies from one carrier. The Hartford sells these products through independent brokers and agents.

For general liability coverage, consider:

Business owner's policy

A business owner's policy, or BOP, combines general liability coverage and commercial property insurance into one policy. Bundling these two types of insurance is typically less expensive than buying each of them separately.

Consider these carriers

Liberty Mutual has more than 100 years of experience in business insurance and offers BOPs in more than 100 professions. It offers 24-hour claims assistance, plus a quick and easy claims process, available online or through an app. It also has an A rating from AM Best and offers more than 1,000 downloadable safety resources for its customers.

For business owner’s policies, consider:

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Professional liability insurance

Professional liability insurance can help cover your legal expenses if a dissatisfied client sues you for a mistake, such as a missed deadline or an error in your work. It's also called errors and omissions insurance or E&O.

Some clients require this coverage before they’ll do business with you. It’s often purchased by consultants, accountants, architects, engineers, real estate agents, and other professional service experts.

Consider these carriers

Philadelphia Insurance (PHLY) is known for high customer satisfaction, boasting client satisfaction rates of more than 95 percent. In business for more than 55 years, Philadelphia has an admirable financial rating of A++ from AM Best.

In addition to selling a wide range of small business insurance policies, Philadelphia also offers more than 60 risk management courses online at no additional cost for its clients.

For E&O insurance coverage, consider:

Workers’ compensation insurance

Workers’ compensation insurance is required in most states for any business that has employees. Some states require it even if a small business owner doesn’t have any employees, especially for those in the building trades. Workers’ comp covers employee medical costs and income loss involving work-related injuries and illnesses, as well as lawsuits over employee injuries.

Consider these carriers

AmTrust Financial has been in business since 1998. It has more than 500,000 small commercial policies in force and an A- rating from AM Best. AmTrust also earned recognition as a "Best and Brightest Employer" for 2021 by the National Association for Business Resources [PDF].

With workers’ comp insurance, AmTrust offers experienced agents that can help walk small business owners through the buying process and help them understand the various laws, class codes and underwriting involved. Additionally, they offer a Loss Control Department which includes Workplace Safety Training Resources to help small business reduce risks and employee injuries.

For workers’ comp coverage, consider:

"Many business owners find it useful to consult with insurance experts who understand what carriers have to offer."

Cyber liability insurance

Cyber liability insurance covers costs resulting from data breaches and cyberattacks, such as notifying customers, recovering data, and providing fraud monitoring services for affected customers. Cyber liability coverage can also help pay for a lawsuit, such as settlement costs and hiring a legal team.

Consider these carriers

Founded in 2017, Coalition is a comprehensive cyber insurance and security company that insures its clients against cyber risks, while helping them reduce their cyber liabilities.

Its clients receive free 24/7 monitoring, cyber risk assessments, employee training, and security services. The company boasts that its proactive approach results in just 1.6% of its clients reporting a cyber claim, compared to a market average of 6.2%.

For cyber liability coverage, consider:

Commercial auto insurance

Required in most states for business-owned vehicles, commercial auto insurance covers legal bills, medical expenses, and property damage if a company-owned vehicle is in an accident. It also insures against vehicle theft, vandalism, and certain types of damage.

Consider these carriers

Founded in 1937, Progressive has an A+ rating from AM Best and is the largest provider of commercial auto insurance in the United States, with coverage available in every state.

It offers discounts on commercial auto insurance when combined with general liability or a business owner’s policy. It also offers a 15% discount for businesses that pay their annual premiums up front, and a 24/7 customer support line.

For commercial auto coverage, consider:

How do I find the right business insurance?

As you can see, there are many small business insurance companies offering nationwide coverage, so you have plenty of options available in 2022. Of course, business insurance costs should only be one factor in finding the right coverage. You'll want to consider what the policy covers, along with its limits, deductibles, and exclusions.

After comparing business insurance quotes online, many business owners find it useful to consult with insurance experts who understand what carriers have to offer.

A licensed agent can help you consider your insurance needs and help you find the best business insurance coverage from among the many coverage types. Start your quote today with Insureon and we’ll help match you with the right A-rated insurance providers.

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