How to choose the right insurance company for your small business

One of the biggest characteristics you should consider in an insurance company is its financial strength. Can they handle a wide range of claims, including large or complex ones? Will they be able to pay your claim in five to ten years?

To get a clearer picture of an insurer's financial strength, you can check its financial ratings from independent rating agencies like A.M. Best, S&P Global (formerly Standard & Poor's), and Moody's.

As the only credit rating agency to exclusively focus on the insurance industry, A.M. Best gives each carrier a grade based on information such as:

• Balance sheet strength: Evaluating capital, liquidity, and leverage to determine whether an insurer has enough assets to cover insurance claims.
• Operating performance: Assesses an insurance provider's sustainability and quality of earnings over time, including profitability, underwriting results, and expense management.
• Business profile: Analyzes an insurance company's market position, diversification, and competitiveness.
• Enterprise Risk Management (ERM): Examines an insurer's ability to identify, manage, and mitigate risks across the organization.

These ratings, which are issued annually, can provide entrepreneurs and small business owners with peace of mind. For example, A.M. Best gives an insurance company an A++ or A+ if it has a superior ability to pay claims, even during the most catastrophic events.

When assessing the quality of a provider's customer service, here are some things to look out for:

• The number of ways you can contact them, including by phone, email, online portal, or customer app
• The amount of time it takes for an agent to reply to your messages across different platforms
• Whether their agents are empathetic, patient, and knowledgeable when you speak to them, and if they use easy-to-understand terminology when explaining coverage, deductibles, exclusions, and other important details.

96% of consumers check customer reviews before buying a product or service for the first time. Social proof is another trusted way to search for an insurance company. There are a few methods to find legitimate customer feedback, including:

• TrustPilot: Features genuine customer reviews and calculates an insurance provider's TrustScore based on the average star rating of all online reviews.
• Better Business Bureau (BBB): A nonprofit organization that grades insurance companies based on trust, complaint history, and business transparency.
• J.D. Power: Provides customer satisfaction reviews and rankings based on feedback from thousands of policyholders.
• Insureon: Provides ratings and customer scores for all our trusted insurance partners in one place.

If your small business needs multiple policies—such as general liability, commercial property, and business interruption insurance—buying these coverages in a bundle can offer many benefits, namely:

• Cost savings, because most bundles cost less than purchasing the policies individually.
• Simplified policy management, since bundling means one carrier, one renewal day, and typically one monthly premium.
• Broader, better coverage, as most bundles knit multiple policies tightly together to reduce coverage gaps or overlaps that can happen with individual policies.

Small business owners often work with tight budgets and limited cash flow. But the cheapest policy doesn’t always mean the best value. Bargain-bin insurers can botch a claim or fail to follow through, costing you even more.

It's important to evaluate whether an insurer:

• Provides scalable coverage: Adjusting to the size and risk of your business so you're not paying for unneeded extras.
• Offers flexible payments: Monthly or tailored premium payment plans to fit tight cash flow.
• Has savings options: Policy bundles, claims-free discounts, and other personalized ways to reduce costs.
• Ensures value of price: Prioritizing quality protection over the cheapest upfront cost.

Insureon understands that price matters—but so does quality, protection, transparency, and customer support. We work with you to provide the right coverage solutions for your business, including cost-saving bundles such as:

Business owner's policy (BOP): Bundles general liability insurance and commercial property insurance to protect your small business against common risks, such as slip-and-fall lawsuits and stolen or damaged business property.

Commercial package policy (CPP): Typically purchased by larger companies, a CPP lets you bundle multiple liability policies together while offering more flexibility around risks covered and policy limits.

While it's important to understand an insurance carrier's pricing and coverage options, it's equally crucial to understand their credibility. Here are a few things to look out for when assessing a provider's legitimacy:

• Licensing: A properly licensed insurer is officially authorized and regulated by the state, meaning your policy is valid, your claims are protected, and the company is held accountable to legal and financial standards.
• Experience: Companies that have been in business for years usually have a proven track record to efficiently handle claims, customize small business needs, and survive market fluctuations.
• Brand trust: Carriers with strong reputations signal accountability, solid customer service, and expertise that can provide competitive, reliable coverage.

Insureon is the #1 digital insurance agency for small businesses. We only partner with licensed, A-rated carriers across all fifty states and Washington, D.C. to provide credible, quality coverage for small business owners.

To secure the best coverage for your small business, you need to start by getting multiple insurance quotes, so you can understand coverage limits, deductibles, and insurance rates.

Insurance marketplaces make it quick and easy to compare a variety of companies at once, which is why many small business owners turn to places like Insureon to help them choose the right insurance company.

Here are some of the perks you get with Insureon:

• Variety: While traditional agents might represent one or two carriers, Insureon offers multiple top-rated providers in one place.
• Speed: Instead of spending hours contacting carriers one by one, Insureon can help you secure coverage within a few hours of submitting your application.
• Objectivity: Insureon provides honest, unbiased information about all of our insurance partners, allowing you to thoroughly evaluate your options.
• Ease: Our application process is completely online, so you can find coverage, speak with a licensed agent, and get the right policies all from your phone.