Key Takeaways

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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.

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The cheapest overall commercial insurance provider for startup businesses is Simply Business, with low monthly rates for various coverage types.

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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.

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Ensure you're getting the best rate for your small business insurance. Compare quotes from the top insurance companies.

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Best Business Insurance for Startup Companies

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.

Simply Business949883
The Hartford949491
Nationwide939391
biBERK919391
Hiscox909487
Coverdash888883
Progressive Commercial889181
NEXT Insurance878094
Chubb878387
Thimble858581

*All scores were based on a startup business with two employees across professional liability, general liability, workers' comp and BOP policies.

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1. Simply Business

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pros

  • Cheapest general liability coverage

  • Lowest BOP insurance cost

  • Compare multiple carriers easily

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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.

The Hartford

2. The Hartford

*on The Hartford
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pros

  • Cheapest professional liability insurance

  • Strong financial backing (A+ AM Best)

  • Trusted for scaling businesses

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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.

Nationwide

3. Nationwide

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pros

  • Strong BOP and liability pricing

  • Stable claims experience

  • Highly rated customer service

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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.

Compare Small business Insurance Rates

Ensure you're getting the best rate for your small business insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

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.

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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

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. 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. 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. 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. 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. 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.

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?

Who has the cheapest business insurance for startup companies?

What business insurance is required for startup organizations?

How much does startup business insurance cost?

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 headshot

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.


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