Best Small Business Insurance 2023

Best Small Business Insurance

Small business owners often find themselves navigating a sea of choices when it comes to securing the right insurance coverage. Your priority should be to partner with a reputable insurance company that allows you to focus on your business without worrying about insurance. At, we’ve meticulously examined complaint data from 28 insurance providers to identify the top small business insurance options for September 2023.

Best Small Business Insurance 2023 Logo
Illustration of the Best Small Business Insurance 2023 Logo, showcasing top-notch coverage for your business.

Why You Can Trust Forbes Advisor

Our commitment at Forbes Advisor is to provide you with unbiased ratings and information. We uphold rigorous editorial guidelines that are entirely independent of advertisers’ influence. Our evaluation of insurance companies is driven by data-driven methodologies, ensuring that all companies are assessed fairly. For more insight into our editorial guidelines protect your business and rating methodology, read on below.

What Insurance Do You Need for a Small Business?

When it comes to purchasing small business insurance, your choices hinge on your business’s size and type. Common types of small business insurance encompass:

  • General Liability Insurance
    • Covers liability claims, including bodily injury, property damage, slander, libel, and copyright infringement.
    • Provides coverage for legal expenses, such as attorney fees, judgments, and settlements against your company.
  • Commercial Property Insurance
    • Safeguards your small business’s physical assets against issues like fire damage and theft.
    • Covers business items like computers, workstations, desks, chairs, records, inventory, supplies, office space, and business buildings.
  • Workers Compensation Insurance
    • Supports your employees in case of job-related illness or injury.
    • Includes medical care, physical therapy, compensation for lost wages, and death benefits for employees’ families.
  • Commercial Auto Insurance
    • Covers vehicles used for business purposes, such as cars, trucks, and vans.
    • Personal auto insurance typically doesn’t extend to business use, potentially leaving you responsible for accident-related expenses.
  • Errors & Omissions Insurance (E&O)
    • Covers liability costs if clients accuse you of professional mistakes.
    • Also known as professional liability insurance.
  • Inland Marine Insurance
    • Protects business property during land transport, including equipment, materials, products, and tools.
    • Not to be confused with marine insurance, which applies to water transport.
  • Cyber Liability Insurance
    • Covers recovery costs in case of data breaches and computer system hacks.
    • Assists with expenses such as customer notifications and credit monitoring.
  • Short-Term Liability Insurance
    • Designed for short projects, offering coverage for accidental property damage, bodily injuries, and associated legal costs.
    • Ideal for seasonal businesses, short-duration projects, or specific insurance requirements.
  • Medical Malpractice Insurance
    • Covers claims resulting from patient injuries or deaths, including issues like medication errors, premature clinic discharge, and unnecessary surgery.
    • Vital for businesses dealing with medical equipment, patient care, or healthcare monitoring.

What Does Small Business Insurance Cover?

Let’s delve deeper into the primary coverage types for small businesses:

  • General Liability Insurance pays for legal expenses, including attorney fees and judgments against you. It covers damage to reputation, such as slander or libel, and copyright infringement. This type of insurance is also known as business liability insurance.
  • Commercial Property Insurance encompasses various business assets, including computers, workstations, desks, chairs, records, inventory, supplies, offices, and business buildings. It’s also referred to as business property insurance.
  • Workers Compensation Insurance provides multiple benefits to employees affected by job-related illnesses or injuries, covering medical care, physical therapy, lost wages, and death benefits for employees’ families. Businesses typically purchase this insurance, and it’s mandatory in most states.
  • Do You Need Commercial Auto Insurance?
    • Commercial auto insurance is indispensable for covering vehicles used in your business operations, whether it’s a company car or a commercial truck or van.
    • Personal insurance policies won’t cover claims arising from accidents that occur while driving for business purposes.

How Much Does Small Business Insurance Cost?

According to Insureon, the average cost of small business insurance stands at $57 per month. This figure is based on a Business Owner’s Policy (BOP), which bundles general liability insurance, commercial property insurance, and business interruption insurance. Opting for a BOP is generally more cost-effective than purchasing each policy separately.

Several factors influence your small business insurance costs, including:

  • Industry: High-risk industries usually incur higher insurance expenses compared to low-risk ones. For instance, a construction company with multiple employees may pay more for insurance than a solo graphic designer.
  • Payroll and Annual Revenue: Greater operating costs and revenue typically correlate with higher liability insurance premiums.
  • Number of Employees: A larger workforce increases the risk of accidents, potentially raising insurance costs.
  • Location: Operating in high-risk areas with elevated crime rates can lead to higher insurance premiums.
  • Building Age and Size: Older and larger buildings tend to be more expensive to insure than newer, smaller ones.
  • Coverage Amount and Types: Your coverage limits and the specific insurance policies you choose will impact your overall insurance costs.
  • Claims History: A history of filing claims for your small business can result in higher premium rates.


Our ratings are based on complaint data for commercial liability and commercial property insurance in 2020. The data is sourced from complaints upheld by state insurance departments across the country and collected by the National Association of Health Insurance Commissioners.

Trade Credit Insurance For Small Businesses: Protecting Your Bottom Line

Best Small Business Insurance FAQs

What is small business insurance?

Small business insurance provides financial protection against liability claims, such as property damage, bodily injury, and accusations of professional errors and omissions.

How do I know if I need small business insurance?

The vast majority of small businesses would face financial hardship if sued or experiencing significant losses. For these businesses, commercial insurance plan is essential. General liability insurance and commercial property insurance are good starting points. If you have business vehicles, commercial auto insurance is also crucial.

What Is a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) offers an affordable way to secure essential coverage for your small business. It includes general liability insurance, commercial property insurance, and business interruption insurance.

Do I need business insurance if I have an LLC?

Obtaining business insurance for your LLC is advisable, as it protects your business assets. For example, if someone gets injured in your store, general liability insurance can cover medical bills and legal costs resulting from the incident.


Best Small Business Insurance 2023 Logo
Illustration of the Best Small Business Insurance 2023 Logo, showcasing top-notch coverage for your business.

What’s the difference between general liability and professional liability insurance?

General liability insurance covers accidental property damage and bodily injuries to others, while professional liability insurance (also known as errors and omissions insurance) covers claims related to mistakes in professional services.

What type of insurance is best for a small business?

A Business Owners Policy (BOP) is a great starting point as types of insurance it combines three essential coverage types: general liability insurance helps, commercial property insurance, and business interruption insurance. However, your specific business needs may require additional insurance types, such as commercial auto insurance. Consult with your insurance agent to tailor your policy to your industry’s demands.

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