Best Small Business Insurance in Indiana

NEXT leads Indiana business insurance with excellent customer service and comprehensive coverage options. The company earned top marks for customer satisfaction and strong coverage ratings. The Hartford and Simply Business also provide solid coverage for Hoosier business owners.

Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.

Business insurance costs in Indiana range from $72 monthly for workers' compensation to $144 for a business owner's policy. Industry and risk factors drive these price differences. Below you can compare average rates for the four most common business insurance types in the Hoosier State:

We found average business insurance costs for Indiana companies for commonly needed coverage are as follows:

• General Liability Cost: $101 monthly or $1,212 annually
• Workers' Comp Cost: $72 per month or $859 per year
• Professional Liability (E&O) Cost: $76 per month or $906 annually
• Business Owners Policy (BOP) Cost: $144 monthly or $1,725 annually

Workers' compensation offers the most affordable monthly premiums at $72. Business owner's policies cost the most at $144 per month but provide broader coverage that combines general liability with property protection.

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Indiana research covers the companies we surveyed and won't include every rate available to your specific business.

Business insurance costs in Indiana range dramatically from $70 to $15,760 annually, depending on your industry and chosen coverage types. A speech therapist might pay $70 yearly while pressure washing businesses could face $15,760. Compare Indiana commercial insurance costs for your specific coverage type and industry below.

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Indiana research covers the companies we surveyed and won't include every rate available to your specific business.

Indiana business insurance costs vary based on severe weather patterns, legal frameworks and regional location:

• Severe Weather and Tornado Frequency: Indiana experienced 100 billion-dollar disaster events between 1980 and 2024, with severe storms accounting for 72% of these disasters. Tornado frequency nearly tripled from an average of 2.2 events to 6.2 events per year from 2020-2024. In 2024, the tornado season brought 165+ tornadoes in May and 79 in July. These storms cost Indiana $10-20 billion in damages, driving up property insurance and BOP premiums.
• Medical Malpractice Damage Caps: Indiana caps total medical malpractice damages at $1.8 million for incidents after June 30, 2019. Healthcare providers maintain $500,000 minimum liability coverage while the Patient's Compensation Fund covers amounts above that threshold. Healthcare businesses pay surcharges equal to 100% of their underlying professional liability premium (minimum $100). These caps keep medical malpractice premiums lower than states without damage limits.
• Independent Contractor Exemption System: Indiana requires most businesses to carry workers' compensation insurance but maintains a unique independent contractor exemption system. Businesses using independent contractors must verify exemption certificates through the Indiana Department of Revenue. Contractors pay $15 to $20 annually for exemption filing, and employers must obtain stamped certificates before contracting work. This verification requirement affects administrative costs and contractor relationship structures.
• Regional Cost Variations: Insurance costs vary significantly across Indiana based on location. Northern Indiana counties including St. Joseph, Elkhart and LaGrange recorded 69 violent F4/F5 tornadoes with 622 fatalities, making property and BOP premiums higher in these areas. Indianapolis and Marion County businesses pay 20-30% more for commercial auto insurance due to traffic density—the metro area logs over 7.5 million miles traveled annually. Southern Indiana businesses see lower premiums due to reduced severe weather frequency.

Comparing quotes from multiple Indiana insurers helps you find the best coverage at competitive rates. Use our quote tool below to connect with top-rated providers for your business.

Indiana maintains minimal mandatory business insurance requirements compared to most states. Most businesses need only workers' compensation and commercial auto insurance to comply with state law.

Indiana doesn't heavily regulate business insurance, so you can choose coverage that fits your specific needs. We've analyzed what works for major industries here.

Getting business insurance in Indiana means navigating a unique landscape where 40% of employers skip workers' comp coverage, tornado season can destroy operations overnight and choosing the wrong insurer leaves you waiting weeks for adjusters after storms. Smart coverage decisions require understanding these state-specific realities.

NEXT, The Hartford and Simply Business lead Indiana's market, but your choice hinges on optional workers' comp decisions, tornado exposure and storm claim service needs. Compare post-disaster response, leverage voluntary coverage discounts and bundle policies before April's tornado season starts.

Small business owners in the Hoosier State often have questions about finding the right business insurance. We answer the most common concerns below:

Small business owners in Indiana need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Indiana entrepreneurs navigate challenges like hurricane risks and the state's optional workers' compensation laws.

We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.

• Affordability (50% of score): We compared company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
• Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
• Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Indiana's diverse industry needs.
• Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Indiana's frequent weather disasters.

This approach helps Indiana small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.