Best Small Business Insurance in 2023

The Hartford's ranking as the best overall for small business insurance is due to its excellent customer satisfaction ratings and wide range of affordable insurance coverages. The company's professional liability insurance is $304 monthly on average for LLCs with 20 employees.

To find the best small business insurance, MoneyGeek considered factors like insurance type-specific affordability, customer satisfaction, financial stability, variety of coverages and quote response time.

The Hartford earned the top spot with a MoneyGeek score of 95 out of 100, excelling in professional liability insurance for LLCs, customer satisfaction and diverse coverage options. The insurer also offers swift quote times and robust financial stability.

Close behind with a score of 94, biBERK stands out for its strong financial stability, a broad range of coverages and affordable general liability insurance for sole proprietors, priced at an average of $23 monthly.

The table below shows the monthly cost of general liability, professional liability and workers' compensation insurance for each company on our list. We didn't collect sole proprietor cost data for workers' comp insurance as this coverage is typically required only for employers. The table also includes the overall MoneyGeek scores, reflecting how each insurer performed in our evaluation.

Next emerges as the cheapest business insurance provider on our list. It boasts the lowest general liability insurance cost for LLCs with 20 employees at $29 monthly on average. Additionally, Next offers the cheapest average professional liability insurance for LLCs and sole proprietors without employees, at $241 and $41 per month, respectively.

MoneyGeek's affordability score is derived from general liability, professional liability and workers' compensation costs to highlight the most cost-effective insurers. However, the overall cheapest insurer may not offer the best price for each individual type of coverage.

MoneyGeek ranks biBERK as the premier choice for small business insurance for sole proprietors without employees. Its competitive pricing, particularly for general liability insurance, coupled with strong financial stability, positions it as the top choice for single-person businesses seeking comprehensive and affordable coverage.

The Hartford, favored for its cost-effective professional liability insurance at an average of $304 per month, is the top choice for LLCs with 20 employees. The company also excels in customer satisfaction, making it an ideal choice for many businesses. It's important to note that employee count is one of the main factors that influences small business insurance costs.

Thimble is the best choice for fast business insurance quotes, with an average online quote time of 42 seconds. This speed makes Thimble the quickest among the companies we evaluated. If efficiency in obtaining an insurance quote is a priority for your small business, Thimble is the top option to consider.

Small business insurance costs vary significantly based on the type of insurance and the specifics of the business. For instance:

• General liability insurance averages $28 per month for sole proprietors without employees, while for LLCs with 20 employees, it's around $67 per month.
• Professional liability insurance costs approximately $80 per month for sole proprietors without employees and around $705 per month for LLCs with 20 employees.
• Workers' compensation insurance, generally unnecessary for businesses without employees, is about $167 per month for LLCs with 20 employees.

Several factors commonly influence these costs:

• The industry of the business: High-risk industries typically have higher premiums.
• The size of the business: More employees or larger operations often increase costs.
• The location of the business: Some regions have higher insurance costs due to local laws or risk factors.
• The company's claim history: Businesses with more claims often pay more for insurance.
• The coverage limits and deductibles chosen: Higher limits and lower deductibles usually increase premiums.

Keep in mind that we’ve calculated average costs, and the actual insurance premiums for a specific business may vary depending on these factors and more.

Finding the best small business insurance can help you safeguard your business assets and secure financial stability. Find out what type of coverage your business needs and the best place to get a policy.