How To Get Cheap Business Insurance (2024)

More than 33 million small businesses in the U.S. employ about 46% of the private workforce, according to the U.S. Small Business Administration. That adds up to nearly 62 million American workers and includes professions like cleaners, contractors, electricians, estheticians, handymen, photographers, plumbers and roofers.

But if there is one common denominator among this vast group of small business owners, it might be this: They want to find cheap business insurance.

Small Business Insurers Compared

When shopping for cheap small business insurance, you want to find a good company that offers the coverage you need at a good price.

Here are our picks for the best small business insurance companies to get you started.

Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor rating	Complaint level	AM Best financial strength rating
Allianz		5.0		Extremely low	A+ (Superior)
Allstate		5.0		Extremely low	A+ (Superior)
Clear Blue Insurance		5.0		Extremely low	A- (Excellent)
Farmers Insurance		5.0		Extremely low	A (Excellent)
Acuity		4.5		Very low	A+ (Superior)
CNA		4.5		Very low	A (Excellent)
Frankenmuth Insurance		4.5		Very low	A (Excellent)
Travelers		4.5		Very low	A++ (Superior)
Chubb		4.0		Very low	A++ (Superior)
Cincinnati Insurance		4.0		Very low	A+ (Superior)
Westfield Insurance		4.0		Very low	A (Excellent)
Source: Forbes Advisor. We ranked business insurance companies based on complaint data for commercial liability and commercial property insurance. Complaint data is based on complaints upheld by state insurance department in every state and collected by the National Association of Insurance Commissioners.

Determine What Coverage Types Your Business Needs

Before you start a small business insurance shopping journey, it’s important to understand what coverage types are available.

One of the best ways to get building a solid insurance foundation is with a business owners policy (BOP). A BOP bundles together three essential business types:

• General liability insurance. This covers your business against liability claims such as accidental injuries and property damage. General liability insurance also covers other types of claims, such as copyright infringement, advertising injury and reputational harm.
• Commercial property insurance. This covers the physical property of your business for problems like theft and fire damage, such as your building and office equipment. Commercial property insurance is also called business property insurance.
• Business interruption insurance. This replaces lost business income if you cannot open your company due to a problem covered by your policy (like a fire). Business interruption insurance is also called business income insurance.

You can customize your policy with additional types of small business insurance. It’s a good idea to speak with an independent agent who can help you identify coverage types that fit your business’s specific needs.

For example, if you have employees, you’ll most likely be required to buy workers compensation insurance. And if you drive a vehicle for business purposes, you’ll need to have a commercial auto insurance policy.

How Much Does Small Business Insurance Cost?

The median cost of a business owners policy (BOP) is $684 per year, according to Insureon. A BOP bundles together general liability insurance, commercial property insurance and business interruption insurance.

Your own small business insurance costs will depend on several factors, including:

• Your type of business
• The years of experience of your business
• Location of the business
• Size, location and condition of the building
• Number of employees
• Payroll
• Business assets
• Policy details, such as coverage limits and deductibles
• Your insurance claims history

Examples of General Liability Insurance Costs by Profession

Here’s a look at how the median cost of general liability insurance varies by different professions.

How Can I Get Cheap Business Insurance?

Once you understand what coverage types you will need for your small business, you’ll want to compare business insurance quotes among several insurance companies. That’s because the price for similar coverage can vary among insurers.

You can get free business insurance quotes:

• Online. Most business insurance companies offer free quotes online. You can visit several insurers’ websites to gather quotes. Or you can use a quote comparison website that provides quotes from multiple companies at once.
• By phone or in person. You can speak with a local insurance agent who can help you find the best coverage and rates for your small business. It’s prudent to speak with an independent agent who can gather quotes from multiple companies. A “captive” agent works for one insurance company and cannot give you quotes from multiple insurers.

What Information Do I Need to Get Business Insurance Quotes?

To get an accurate business insurance quote, you’ll want to gather some basic information, such as:

• Industry type
• Business location, including property details such as the size and age of the building
• Business name
• Business partners
• Owner information, including the number of years worked in the industry
• Details of business operations
• How much your business makes in revenue
• Number of employees
• Annual payroll
• Subcontractor costs
• Business equipment, including tools, materials and computers
• Insurance history and prior claims

Bundle Your Business Insurance Policies

You may need several types of small business insurance to cover the risks specific to your industry. One of the best ways to get cheap business insurance is to buy multiple policies from the same insurance company.

One way to do this is by purchasing a business owners policy (BOP). A BOP bundles key insurance types: general liability insurance, commercial property insurance and business interruption insurance.

A BOP is a good start for most small businesses, but it doesn’t cover everything. You can buy additional coverage types to address your business’s needs. For example, you can add workers compensation to cover employee injuries or commercial auto insurance for your company car.

Manage Your Business’s Risks

You may be able to find cheap business insurance by taking steps to manage the common risks that affect your business. Here are some examples of actions you can take.

• Install security alarms and fire suppression systems. You may qualify for a discount on your commercial property insurance if you install devices such as burglar alarms, fire alarms and sprinkler systems.
• Create a safe workspace. Taking steps to eliminate hazards at your workspace can help reduce the chances of general liability claims and workers comp claims. For example, keep your walkways clear of clutter, clean spills immediately and train your employees to operate equipment properly.
• Create a job description for each position that clearly defines performance expectations.
• Develop an employee handbook. Detail your company’s workplace procedures, policies and best practices. This should include expectations for attendance, discipline and complaints, and an employment-at-will statement and an equal opportunity statement.
• Create a record-keeping system to document employee issues and other types of incidents as they arise, including what your company did to address and resolve those issues.
• Reduce your exposure to cyber threats. You can take steps to help prevent some of the most common cyberthreats facing small businesses.

Reassess Your Business Risks Every Year

As your business grows, you may take on some additional risks. For example, you might purchase new equipment or introduce new responsibilities for your employees.

It’s a good idea to reassess your business risks annually and speak with your insurance agent about how changes in your business might affect your coverage. You can typically add more coverage if you need it. Without enough business insurance, your company could end up paying out-of-pocket for claims.

Cheap Business Insurance Frequently Asked Questions (FAQs)