Best Small Business Insurance in 2025

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 is the best cheap business insurance provider on our list. It offers the lowest general liability insurance cost for LLCs with 20 employees at just $29 monthly on average.  Next also has the most affordable professional liability insurance for both LLCs and sole proprietors without employees, at $241 and $41 per month respectively.

MoneyGeek calculates its affordability score by analyzing general liability, professional liability, and workers' compensation costs to identify the most cost-effective insurers. Keep in mind that while Next ranks as the overall cheapest provider, it may not offer the lowest price for every specific type of coverage your business needs.

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.

Step 1: Understand the Basic Coverage Types

Different businesses face different risks, so understanding these fundamental coverage types is essential:

• General Liability Insurance: Protects against third-party claims of bodily injury, property damage, and advertising injury. This is foundational coverage almost every business should have.
• Professional Liability Insurance: Also called errors and omissions (E&O) insurance, this covers claims alleging mistakes, negligence, or failure to deliver promised services. Essential for consultants, professionals, and service providers.
• Workers' Compensation: Required by law in most states for businesses with employees. Covers medical expenses and lost wages for work-related injuries and illnesses.
• Business Owner's Policy (BOP): Bundles general liability and commercial property insurance, often with business interruption coverage, at a lower cost than purchasing separately.
• Commercial Property Insurance: Protects your physical assets like buildings, equipment, inventory, and furniture against fire, theft, and certain natural disasters.

Step 2: Assess Your Business-Specific Risks

• Industry Requirements: Some industries have specialized insurance needs or legal requirements. Construction businesses often need builder's risk insurance, while restaurants may need liquor liability coverage.
• Business Structure: Sole proprietors face different liability concerns than LLCs or corporations. Your business structure affects your personal liability exposure and insurance needs.
• Employee Count: More employees typically means more insurance requirements, particularly for workers' compensation and employment practices liability.
• Physical Assets: Businesses with significant property, equipment, or inventory need robust property coverage, while digital-only businesses have different priorities.
• Client Contracts: Review your contracts to identify any required insurance types or coverage limits your clients demand before doing business with you.

Step 3: Consider Legal Requirements

• State-Mandated Coverage: Workers' compensation is legally required in most states once you have employees. Some states also mandate disability insurance or other specific coverage types.
• Industry Regulations: Certain professions (healthcare providers, financial advisors, etc.) have legal insurance requirements set by licensing boards or regulatory agencies.
• Lease Agreements: Commercial leases often require tenants to maintain specific insurance types and coverage limits.

Step 4: Evaluate Additional Specialized Coverage

• Cyber Liability Insurance: Essential for businesses that handle sensitive customer data or rely heavily on digital systems.
• Commercial Auto Insurance: Required if your business owns, leases, or uses vehicles for business purposes.
• Business Interruption Insurance: Covers lost income during periods when you can't operate due to covered property damage.
• Product Liability Insurance: Important for manufacturers, distributors, and retailers to protect against claims of injury or damage caused by products.
• Equipment Breakdown Insurance: Covers repair or replacement costs for equipment failures not covered by standard property insurance.

Step 5: Work with the Right Provider

• Business Size Compatibility: Some insurers like Thimble specialize in very small businesses and startups, while others like The Hartford have more robust options for growing companies with complex needs.
• Industry Expertise: Choose an insurer with experience in your specific industry who understands your unique risks.
• Bundling Opportunities: Many insurers offer significant discounts when you bundle multiple policies, improving overall cost-effectiveness.
• Claims Process: Research each provider's claims handling reputation and process, as this becomes critically important when you actually need your coverage.

The Hartford

The Hartford offers a range of specialized policies for different business needs and industries:

• Cyber Liability Insurance: The Hartford offers two levels of cyber coverage: data breach insurance for small businesses to help respond to breaches, and comprehensive cyber liability insurance for larger businesses, which provides broader protection for cyberattacks and recovery.
• Professional Liability/E&O: The Hartford provides professional liability insurance (also known as errors and omissions) with options for tailored coverage limits and extended reporting periods.
• Industry-Specific Programs: The Hartford offers specialized programs for specific industries including pool and spa contractors, specialized truck equipment, alarm contractors, architectural and engineering firms, and railroad contractors.
• Technology Liability: The Hartford has specialized coverage combining technology liability, professional services liability, media liability, and cyber coverage in a single policy specifically designed for tech companies.

biBERK

As part of Berkshire Hathaway, biBERK offers several specialized insurance options:

• Cyber Liability Insurance: biBERK offers cyber liability insurance as an add-on to professional liability policies, covering data breaches, cyberattacks, and regulatory action defense.
• Professional Liability Insurance: Their professional liability policies are designed for specific industries and start around $300 per year, with coverage that can be customized based on business needs.
• Industry-Specific Coverage: biBERK provides specialized insurance for various industries including accounting, architecture, engineering, auto services, bakeries, healthcare facilities, IT firms, restaurants, and transportation companies.

Next Insurance

Next Insurance focuses on digital-first insurance with specialized offerings:

• Industry-Tailored Packages: Next offers specialized insurance packages for specific industries including construction (general contractors, electricians, HVAC technicians, plumbers), fitness businesses, landscaping companies, food trucks, and photographers.
• Tools and Equipment Insurance: Next provides specialized coverage for expensive or specialized equipment as an add-on to general liability policies, helping businesses quickly replace or repair critical tools.
• Specialized Liability Options: They offer industry-specific coverage like product liability insurance for retailers and liquor liability insurance for restaurants and food service businesses.

Thimble

Thimble stands out with its flexible, on-demand approach to specialized coverage:

• Short-Term Coverage: Thimble offers specialized coverage for events or businesses with cyclical needs, allowing businesses to adjust coverage periodically or purchase insurance just for specific events.
• Tech E&O Insurance: Thimble provides technology errors and omissions insurance that protects technology companies when their professional mistakes impact clients, complementing their cyber liability coverage.
• Industry-Specific Insurance: Thimble offers tailored insurance for construction professionals, cleaning businesses, landscapers, event planners, and photographers with specialized coverage options for each industry.

Nationwide

Nationwide offers comprehensive specialized coverage options:

• Enterprise Cyber Insurance: Nationwide's cyber security liability insurance includes data compromise coverage, identity recovery protection, and protection against virus and computer attacks.
• Industry-Specific Coverage: Nationwide provides specialized protection for businesses across a variety of industries with tailored coverage options for each.
• Food Business Insurance: Their food business insurance includes industry-specific coverages like cyber protection, umbrella coverage for large liability losses, and employee practices liability.
• Professional Liability: Nationwide offers professional liability insurance (errors and omissions) designed to protect businesses that provide professional services against claims of negligence or mistakes.

All five highlighted insurers offer business insurance nationwide, but with important variations by state:

• The Hartford: Offers commercial coverage in most states, with a comprehensive range of business insurance products widely available across the country.
• biBERK: Available in all 50 states, though specific business policy types vary significantly by location. Their website provides detailed coverage maps showing exactly which commercial policies are available in each state.
• Next Insurance: Sells business policies in all 50 states with their Business Owner's Policy available in 41 states plus D.C., including key markets like New York and Texas.
• Thimble: Offers core business products (general liability, professional liability, and BOP) in all 50 states, though workers' compensation is limited to non-monopolistic states, and cyber insurance is unavailable in 14 states including California and New York.
• Nationwide: Maintains broad business coverage options across most states as a major national carrier.

Business owners should verify specific policy availability in their location before selecting a provider, as state-level exceptions could impact coverage options.

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.