Simply Business earned our top spot for the best small business insurer for startup companies due to its affordability and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, Nationwide and biBerkK.
Best Startup Business Insurance
Updated: July 7, 2025
Advertising & Editorial Disclosure
Key Takeaways
Simply Business and The Hartford lead our rankings as the best business insurance companies for startup firms, with Simply Business excelling in affordability and The Hartford offering superior customer service.
The cheapest overall commercial insurance provider for startup businesses is Simply Business, with low monthly rates for various coverage types.
To shop for business insurance for your startup business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Startup Companies
| Simply Business | 94 | 98 | 83 |
| The Hartford | 94 | 94 | 91 |
| Nationwide | 93 | 93 | 91 |
| biBERK | 91 | 93 | 91 |
| Hiscox | 90 | 94 | 87 |
| Coverdash | 88 | 88 | 83 |
| Progressive Commercial | 88 | 91 | 81 |
| NEXT Insurance | 87 | 80 | 94 |
| Chubb | 87 | 83 | 87 |
| Thimble | 85 | 85 | 81 |
*All scores were based on a startup business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. Simply Business
pros
Cheapest general liability coverage
Lowest BOP insurance cost
Compare multiple carriers easily
cons
Support varies by insurer
COMPANY HIGHLIGHTS
Simply Business is the top choice for startups looking to keep early costs low without sacrificing protection. It leads in affordability across key policies, offering general liability for $14 per month and BOP coverage at $21 per month. As a broker platform, it gives startups access to a wide range of insurers in one quote process, making it easy to find tailored coverage based on your industry and funding stage. It’s especially helpful for solo founders, pre-revenue teams, or new LLCs. Just keep in mind that policy experience depends on the insurer you’re paired with.
2. The Hartford
pros
Cheapest professional liability insurance
Strong financial backing (A+ AM Best)
Trusted for scaling businesses
cons
Fewer digital onboarding features
COMPANY HIGHLIGHTS
The Hartford is a reliable option for startups moving fast but needing serious protection—especially those in tech, consulting, or services. It has the lowest professional liability pricing at $64 per month and solid BOP coverage at $33 per month. Backed by an A+ rating from AM Best, it’s a great fit for founders who want long-term, scalable insurance as their operations grow. Though it’s not the most digital-first provider, it brings experience that many VC-backed startups and expanding teams can rely on.
3. Nationwide
pros
Strong BOP and liability pricing
Stable claims experience
Highly rated customer service
cons
Limited tech integrations
COMPANY HIGHLIGHTS
Nationwide is a solid contender for startups that want stable service and mid-range pricing. It offers general liability insurance at $20 per month and a competitively priced BOP at $30 per month. Its reputation for strong customer service and smooth claims handling makes it a safe pick for founders navigating vendor contracts or first-time policy needs. It’s especially useful for startups in operations-heavy verticals like food, retail, or logistics. While not the cheapest, Nationwide balances cost and dependability well for businesses entering growth mode.
Cheapest Business Insurance for Startup Firms
Based on our study of business insurance pricing, Simply Business offers the cheapest overall commercial insurance for startup companies for general liability and BOP coverage. However, this applies only to startup companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Startup Companies
With an average monthly rate of $14, Simply Business offers the lowest-cost general liability insurance for startup companies. Even so, consider getting quotes from the next-most-affordable insurers: Nationwide and Hiscox.
| Simply Business | $14 | $173 |
| Nationwide | $20 | $241 |
| Hiscox | $21 | $247 |
| biBERK | $25 | $298 |
| The Hartford | $26 | $309 |
| Progressive Commercial | $29 | $345 |
| Coverdash | $33 | $391 |
| Chubb | $35 | $425 |
| Thimble | $36 | $431 |
| NEXT Insurance | $54 | $648 |
Cheapest Workers' Comp Insurance for Startup Companies
For startup businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $6 per month or $67 yearly. However, you may find more affordable rates with Progressive Commercial, Simply Business, Hiscox and The Hartford.
| Coverdash | $6 | $77 |
| Hiscox | $6 | $75 |
| Progressive Commercial | $6 | $72 |
| Simply Business | $6 | $75 |
| The Hartford | $6 | $76 |
| Thimble | $6 | $67 |
| biBERK | $7 | $79 |
| Nationwide | $7 | $84 |
| NEXT Insurance | $7 | $78 |
| Chubb | $8 | $90 |
Cheapest Professional Liability Insurance for Startup Companies
The Hartford offers the most affordable professional liability insurance options for startup companies, with low average monthly rates of $64. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Hiscox.
| The Hartford | $64 | $771 |
| NEXT Insurance | $67 | $808 |
| Progressive Commercial | $68 | $821 |
| Hiscox | $71 | $856 |
| Simply Business | $71 | $854 |
| Coverdash | $72 | $870 |
| Thimble | $72 | $859 |
| biBERK | $74 | $884 |
| Nationwide | $77 | $927 |
| Chubb | $84 | $1,003 |
Cheapest BOP Insurance for Startup Companies
Simply Business provides the most affordable business owner's policy (BOP) coverage for startup companies, with an average yearly cost of $257 for bundled general liability and property protection. That's a savings of roughly $106 annually compared to Nationwide, the second most affordable option.
| Simply Business | $21 | $257 |
| Nationwide | $30 | $363 |
| Hiscox | $31 | $371 |
| biBERK | $32 | $386 |
| The Hartford | $33 | $395 |
| Progressive Commercial | $43 | $519 |
| Coverdash | $47 | $567 |
| Chubb | $53 | $637 |
| Thimble | $56 | $669 |
| NEXT Insurance | $78 | $937 |
What Type of Coverage Do You Need for a Startup Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED STARTUP BUSINESS COVERAGE
General liability insurance is strongly recommended for startup companies because it covers common risks like third-party bodily injury, property damage, and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. This coverage becomes especially useful for companies offering specialized services or handling large contracts where the risk of disputes is higher.
Coverage Recommendations by Startup Company Type
We've organized a list of startup service types by risk exposure, ranging from highest to lowest. This breakdown can help you understand the insurance coverage your business might need. Businesses with higher risk should consider more comprehensive coverage to safeguard against potential liabilities.
Startup Company Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
SaaS / Tech Startups | Professional Liability (high limits), Cyber Liability, General Liability, BOP, Tech E&O, Workers’ Comp | Data breaches, service outages, bugs causing client losses, contractor injuries | Client lawsuits over downtime or losses, IP disputes, employment claims |
E-commerce Startups | General Liability, Product Liability, Cyber Liability, BOP, Workers’ Comp | Product defects, fulfillment errors, hacked payment systems | Customer injury/property lawsuits, fraud claims, website downtime disputes |
Health or Wellness Startups | Professional Liability, General Liability, Workers’ Comp, Product Liability, EPLI | Client injury, bad advice, product reactions, staff injury | Malpractice claims, contract breaches, HR-related lawsuits |
B2B Consulting or Financial Startups | Professional Liability, General Liability, BOP, Cyber Liability, E&O | Bad advice, delayed delivery, data exposure, system errors | Negligence lawsuits, financial harm to clients, breach of confidentiality |
Retail / Food Startups | General Liability, Commercial Property, Workers’ Comp, BOP, Product Liability | Customer slip-and-fall, equipment damage, food safety incidents | Injury lawsuits, property damage claims, foodborne illness claims |
Solo Founders or Freelancers (LLC or C-Corp) | General Liability, Professional Liability, Cyber Liability (if applicable), Business Personal Property | Missed deadlines, tech failures, contract disputes, stolen gear | Failure to deliver, breach of contract, IP conflicts |
How to Get the Best Cheap Business Insurance for Your Startup Company
Here's a step-by-step method for finding the best and cheapest business insurance for your startup company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To ensure you get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The tried-and-true method for finding the best deal is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Startup Business's Liability Risk
Reducing risk is essential for startups aiming to minimize insurance costs and avoid claims. Here, we've organized practical risk mitigation strategies by business type and risk level to help you manage your startup effectively.
Startup Business Risk Type | Included Types of Startup Companies | Risk Mitigation Tactics |
|---|---|---|
Highest | SaaS, fintech, healthtech, logistics, or venture-backed startups | Require signed client agreements with disclaimers and limits of liability. Encrypt all user data and perform regular security audits. Maintain high-limit cyber and E&O coverage. Implement employee training on security, code deployment, and compliance. |
Moderately High | E-commerce, product-based, or food startups | Use vendor contracts with indemnity clauses. Test products thoroughly and document all safety practices. Maintain recall procedures and terms of use. Protect systems with cybersecurity and fraud detection tools. |
Moderate | Consulting, marketing, or freelance service startups | Use engagement letters or statements of work for every project. Clarify service boundaries and timelines. Use email trails for scope approvals. Carry professional liability coverage for disputes over deliverables or results. |
Moderately Low | Retail, fitness, wellness, or creator-based startups | Keep spaces safe for clients and employees (wet floor signs, equipment maintenance). Collect signed waivers or service consents. Document all client sessions or communications. Maintain general liability and property coverage. |
Lowest | Solo tech founders, bootstrapped freelancers, early LLCs | Even if pre-revenue, keep minimal general and professional liability coverage active. Use NDAs, IP assignments, and clear scopes. Back up all work to cloud platforms with audit trails. Avoid handshake deals—always get it in writing. |
Best Insurance for Startup Business: Bottom Line
Simply Business is the best insurer for startup business insurance, while it also offers the cheapest option overall. We also recommend getting quotes from The Hartford and Nationwide. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Startup Business Insurance: FAQ
The following section addresses frequently asked questions about insurance options for startup businesses.
Who offers the best startup business insurance overall?
Simply Business provides the best business insurance for startups, with a MoneyGeek score of 94 out of 100, thanks to its excellent coverage. The Hartford ties with Simply Business, both scoring 94.
Who has the cheapest business insurance for startup companies?
Here are the cheapest business insurance companies for startups by coverage type:
- Cheapest general liability insurance: Simply Business at $14 per month
- Cheapest workers' comp insurance: Thimble at $6 per month
- Cheapest professional liability insurance: The Hartford at $64 per month
- Cheapest BOP insurance: Simply Business at $21 per month
What business insurance is required for startup organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for startup businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does startup business insurance cost?
Business insurance costs for startups vary based on industry, funding stage, and team size. Based on pricing for businesses with two employees, here are the average monthly premiums:
- General Liability: $29 per month
- Workers Comp: $7 per month
- Professional Liability: $72 per month
- BOP Insurance: $42 per month
How We Chose the Best Startup Business Insurance
We selected the best business insurer for startup companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.