Your coverage requirements are unique just as your business. Coverage like professional indemnity, product liability insurance, workers’ compensation plan and general liability are all made available in business insurance to offer protection for company owner’s businesses from a different type of risks.
You can as well protect yourself and your business from property damage, staff injury, and other common problems by purchasing a business insurance policy from a reliable and trustworthy insurance company.
Your type of business and the number of employees will determine the cost of your business insurance. We took our time to research many insurance providers, comparing the policy options of each company and their customer service.
Over 100 carriers are compared based on factors like policy, costs, and online presence to arrive at the top 10 commercial Insurance companies. If you are looking to hire a commercial insurance company, this list will go a long way. First and foremost, let’s understand business insurance means.
What is Commercial Insurance?
Commercial or business insurance is the policy whose purpose is to protect the business from future risks. Among the risk included in the coverage are theft, business property damage, employees’ grievances, legal issues, and loss of income as a result of interruption in business.
The business, business owners, and their staffs are all protected by commercial insurance. The insurance policy known as “one-size-fits-all” is not available for small business owners due to the variance in business.
The Best Commercial Insurance Companies of 2020
We have come up with a list of 10 best business insurance companies that stand out after carefully examining their optional coverage, entire customer experience, and coverage packages. We then compared them based on their presence across the country, their basic policies, and their online estimate tools.
Below are our picks:
1. Nationwide Insurance
Overall Rating 4 / 5
Varieties of insurance options are made available to small and large businesses by Nationwide. They are close to the top of our ranking because of the excellent online services they offer, their stability, size, and choice to work with independent agents.
You get to select different coverage and still receive discounts and benefits for you and your business due to the company’s size and varieties of insurance products.
Nationwide is rated A+ by A.M. Best. The company is also rated number one by A.M Best as the main company that provides insurance for farms and agribusinesses.
If you are starting a winery, a farm or any other agribusiness, Nationwide is just the home for your insurance needs. The company also provides an online small business resource center for people.
2. Acuity Insurance
Overall Rating 4.5 / 5
A.M Best, which is one of the strongest rating platforms in the country, rates Acuity A+. The company made their insurance products available through independent insurance agents. The company offers different types of coverage options for business owners.
There are special programs from Acuity for you regardless of your profession, whether a mechanic, trucker, or restaurant owner. That specialization is unmatchable. The kind of expertise you require for your business insurance is available with Acuity.
3. Allstate Insurance
Overall Rating 4.3 / 5
This company provides you with varieties of policies. The company is popular due to its close relationship with legal partners, marketing partners, financial lenders, and office suppliers. Over thirty-six (36) types of business enjoy the coverage offered by Allstate Business Insurance.
The company’s business insurance is sold through independent local agencies, where the insurance agents can work directly with small business owners and tailored the coverage to match their needs.
Common insurance coverage such as property and liability, as well as not so popular options such as coverage for equipment and data breaches is all available in Allstate coverage’s options. Larger business clients such as manufacturing companies may need to check with other companies, as Allstate provides policies for just small and mid-sized businesses.
4. Farmers Insurance
Overall Rating 4.5 / 5
This company only offers eight coverage options and just above 12 industry-specific packages, but also provides customizable and elaborate insurance coverage for any business size. The company has an online tool that is easy to use, and this makes the filing of claim a walk in the park, also with customer support that is always available.
The company performs excellently when special packages are involved. Farmers has policies that suit any kind of operational risk your business may face. You can select the basic coverage option, their house BOP, and additional coverage for special risks.
5. Erie Insurance
Overall Rating 4.2 / 5
This company was established in the year 1925 with a sole mission of providing excellent business insurance customer service to Pennsylvanians. This company today now offers life, business, home, and car insurance through thousands of independent insurance agents across the nation.
A wide variety of insurance products is available with Erie so you can be sure of the possibilities of adding two or more policies at a discount. Their website is found to be interactive and user-friendly, with online quotes on the site, easy to access services to existing customers along with claims reporting and online payments.
Their customer service hours are sometimes extended to evening and weekends. Erie is also rated A+ by A.M Best. They can be trusted with your life insurance too.
6. Progressive Insurance
Overall Rating 4.1 / 5
This company started insuring cars in the year 1937. They now offer life, home, and business insurance today, along with different products. You can consult Progressive’s great collection of FAQs and posts to understand the different types of coverage if you are a new business owner that doesn’t understand what business insurance is all about.
The A+ rating by A.M Best and the excellent uninterrupted service offered by Progressive qualify them to be on our list, as they are also one of the most popular insurance companies in the United States.
This company is also known for their swiftness when it comes to claiming service as well as their willingness to provide insurance service to everyone, regardless of the difficulties other providers may have encountered when registering the person. You are sure to get the exact coverage you need as they partner with independent agents.
7. State Farm Insurance
Overall Rating 4.2 / 5
This company has earned itself a god name in commercial insurance. It partners with small businesses to provide many financial products and resources across the nation. State Farm was established in the year 1922 and now has over 65,000 staffs across the United States. The company is known to provide business solutions and assistance and also has over eighty-two million policies and accounts all over the U.S.
8. Mercury Insurance
Overall Rating 4.1 / 5
This company provides the business owner with policies and other business property and liability insurance coverage regardless of the size and field of the business. Mercury also makes a customer support officer available to attend to customer’s questions or complaints and to give pieces of advice to businesses on different insurance options.
The company has experience working with industries like mini storage, graphic design businesses, metalworkers, restaurants, and so on. If you are new to business insurance packages, Mercury tell you in details to help you choose the best coverage for your business.
9. Humana Insurance
Overall Rating 3.9 / 5
This commercial insurance company specializes in offering health insurance for staffs. Humana offers various types of insurance options for employee benefit packages. It can administer employee benefit packages for small businesses’ employees to save the business, as this would lower the demands on a human resources department.
Among the varieties of plans offered by Humana is group medicare, medical, employee-paid plans, dental, and vision. They are a good deal for health-related businesses in the United States.
10. Zurich North American Insurance
Overall Rating 3.9 / 5
This company makes commercial insurance available to all sizes of business. The company has been operating for more than a century now, and it works with clients across North America. Zurich can provide your business with low rates, instant, and efficient online automated systems to save your business.
Among the list of coverage provided by Zurich includes different liability coverage, property coverage, and workers’ comp in some states. To ensure the effective connection between customers and independent insurance agents all over the country, Zurich keeps its website secure and updated. You can get easy customer support on the site and the ease filing claims is excellent.
The Following Table Displays the Best Commercial Insurance Companies of 2020
|No.||The Best Commercial Insurance Companies of 2019||Website||Phone Number|
|7.||State Farm Insurance||https://www.statefarm.com/||800-732-5246|
|10.||Zurich North American Insurance||https://www.zurichna.com/||800-382-2150|
Types of Commercial Insurance Coverage
There are varieties of commercial insurance coverage available for all business and your particular business as well. Ensure you have all the available information on your particular choice of coverage when speaking to a rep for insurance quotes.
Below is a list of commercial insurance coverage available to businesses:
1. General Liability Insurance
This type of insurance provides coverage for legal and other issues related to injuries, accidents, and claim of negligence. This insurance also protects payments to 3rd parties such as customers for situations like property damage, bodily injury, lawsuits, and so on.
2. Product Liability Insurance
This type of insurance is best for a business that offers services to clients as it protects against errors, negligence, and malpractice in providing services to clients. Many businesses are legally required to have this.
3. Commercial Property Insurance
This type of insurance provides coverage for any damage or loss to the company’s property as a result of perils, which include smoke, fire, or any natural disasters. It also covers the property itself, along with the coverage on the loss of income as a result of business interruption and material loss in the building.
4. Workers’ Compensation
It is mandated by law that most businesses with staffs provide coverage for their employees against injuries at the workplace and other work-related illness. This coverage can take care of medical costs and costs of employees being absent from work as a result of a disability.
5. Home-Based Business Insurance
Both homeowners’ insurance and home-based business insurance policies are available for businesses that are being run from home. This insurance type will provide coverage for extra risks, which include general and professional liabilities.
6. Employee Benefits:
This package is seen by most companies as a means to attract and retain the most talented employees to their company. In this regard, employers make group benefits coverage which includes disability, health and pet insurance that are made available to their staffs.
Factors For Choosing Business Insurance Companies
You might find it hard to decide on which insurance company to handle your business insurance; however, you can consider our helpful tips below to save more of your time, money and effort.
Remember, don’t compromise any point raised here, as it can have implication on your business. Consider the following factors to choose your insurance company:
Business owners are encouraged to find out if the insurance providers have enough knowledge about the particular insurance needed by their company. Questions relating to your field should be asked, as well as the risks that may arise while operating, to determine how knowledgeable the agent is about the type of coverage you need.
2. The available package offered by the provider
Many commercial insurance companies and their brokers will offer a lot of insurance products over a wide range of coverage, while other providers focus on a particular coverage. Find out if they offer all the insurance products needed for your business and also the ones that you may need to purchase in the future.
You may start with general liability insurance, but you will surely need to opt for property coverage, worker’s compensation and more, once you get a new office space and add new employees.
3. Company specialties
It will be best to find out if the company specializes in any specific area you may need, such as cyber risks, green business, and many more. Some insurance companies offer specialized policies that are peculiar to a certain line of profession, such as landscapers.
4. Available resources
Does the company offer many of its resources to help you come up with the best plans? Also, use calculators to determine your coverage limits, and as well as lost control professionals to prevent you from losses and well-outlined procedures for claims for when there is an incident?
5. Good customer service
Most companies in the United States generally buy commercial insurance through a broker such as an insurance agent, and they prefer the one that provides great customer service. It is important to choose an intermediary that will give you their response immediately and efficiently.
6. Methods of contact
Figure out the number of ways made available to contact them. You can determine whether an insurance agent provides support through email, phone, live chats, or all. Make sure you look for an insurance intermediary/broker that always has someone available to attend to you when the need arises, regardless of the method.
The importance of having a means of contacting your intermediary agent readily available is the most vital thing to consider about customer service in the insurance business.
7. In-person visits
Services are made available by insurance providers without having to meet you directly. If the need may warrant you to request for a sit and talk with a person from your insurance company, make sure you look for an agency that makes provision for such.
8. Company’s reputation
Both insurance providers and the intermediaries need to know how long the commercial insurance company has been in existence, as this will be used to determine how they can come through whenever there is any claim by the client. Find out the number of clients they have and what year they started their operation. You can also check their ratings with A.M. Best and Standard & Poor.
9. Go through the company’s claims process
Filing claims shouldn’t involve a difficult, cheating, and stressful procedure. Ask a question on the standard procedure of filing claims at a particular commercial insurance company.
10. Financial strength
Make sure you only insure with a company that has the financial strength to back up yours. Business should consider the future in this regard.
Cost of Commercial Insurance
Policy limits and business operations are part of the many factors that are put into consideration before a general liability insurance estimates can be issued.
The smallest policy goes for $21 monthly for basic coverage. General liability insurance costs an average of $741 annually (not up to $62 monthly), having an average price of $428 (close to $36 monthly).
Policies for small business owners (54%) fall within the range of $400 and $600, and 21% paid below $400. The figures above are gotten from a breakdown of over 18,000 small businesses with ten (10) or fewer staffs that purchased policies from Insureon in the year 2017.
Four Steps to Purchase Business Insurance
Don’t just buy business insurance; ensure you following the recommended steps to get the best out of your policy. Experts recommend the following steps:
- Assess your risks: First consider the type of natural disasters, lawsuits or accidents that could bring damage to your business. If required, you seek help being provided by the National Federation of Independent Businesses (NFIB) on how to choose insurance for your business, so you can easily evaluate your risks and also ensure each part of your business is properly insured.
- Locate a licensed agent with a good reputation: To get help on insurance policies that best match your business needs, you can enlist the help of business insurance agents. Make sure you locate a licensed agent that will keep your interest and his/her own in mind while buying the policies because they are being paid commission by insurance providers on each policy they sell.
- Shop around: Both prices and benefits can vary greatly from one policy provider to another. Make comparisons between terms, rates, and benefits for insurance offers from different insurance agents.
- Re-assess annually: Your liabilities and your business grow together. Make sure you inform your insurance agent of any changes to your business and have them tell you what effect it has on your current coverage.
Frequently Asked Questions
What is Business Income coverage as part of my insurance policy?
The purpose of Business Income coverage is to help your business through periods where you are not earning any income. For instance, a fire, storm, flood or natural disaster could shut down your business for a few weeks or months. Business Income coverage would provide financial relief during such periods.
The coverage may also extend to losses that you experience after you open and slowly ramp up your operations. For instance, if your business can only operate at 50% capacity for a few weeks, Business Income coverage help bridges the financial gap until you are back to 100%.
If I have personal auto insurance for my vehicle, do I need separate commercial auto insurance?
It depends on the specifics of the vehicle ownership and registration. If it is a personal vehicle registered in your name and bought with personal money, it does not require commercial auto insurance.
When the vehicle is bought with company money, or it is registered to the business, or leased by the business, it may require a commercial auto policy. It is dependent on the state where you live.
It is helpful to ask your auto insurance company if you require a commercial policy for the car or truck.
What is a commercial insurance audit?
A commercial insurance audit is typically carried out by the insurance company. They are attempting to find out how much risk they insured over the past year. Perhaps the scope of your business changed drastically in the past few months, and the insurance company wants to reassess to see whether you are over or under paying for your policy.
The most important factors during an insurance audit are the number of sales you make and the cost of your payroll. If either or both of these figures rises substantially, the insurance company may charge you a different rate for next year’s policy.
What are some steps to lowering the cost of commercial insurance?
It is helpful to undergo a risk assessment every year. Such checks help identify actions you can take to lower your insurance costs. Risk assessment also determines if there are specific parts of your company that pose a greater risk than others.
Your business may have purchased more than one commercial policy from the same insurance company, but during different years. Connect with your insurance agent and ask if you qualify for a multi-policy discount. It may not apply until the next year, but you could soon be saving significant money on both policies.
How quickly must the insurance company respond to my claim and pay out if they agree with my assessment?
Some states in the United States have a time limit on how quickly an insurance company must act when you file a claim. For instance, California gives insurers 40 days to accept or deny a claim. North Carolina’s limit is 30 days, and in Texas it is a total of 60 days.
Other states may not have a limit, which can result in insurance companies taking several months to get back to you. It is why choosing the right company is so important. Look through online reviews and talk with business owners in your area about their experiences with various insurance companies before committing to a policy.
It is tempting to secure a policy with the company offering the cheapest quotes. But the process of filing a claim and receiving an answer from the insurance company is arguably more important than how much you are paying in monthly premiums.
Choose insurance companies that have a reputation for being fair and efficient when responding to claims.
You should consider premium as a vital factor when you are looking into general liability insurance. Small business owners are also encouraged to check endorsement options, policy terms and other features to ensure they are receiving the coverage that perfectly fits their needs and to also get the best value in exchange for their money.
If you think you will find it difficult to determine or understand these, it is advisable to hire a business insurance brokers that will help you with finding the best policy that matches your small business. Do you have further questions? Share it in the comment box.