Introduction
Running a small business in the United States comes with plenty of challenges—managing cash flow, hiring employees, and dealing with ever-changing regulations. But one of the most crucial steps entrepreneurs often overlook is securing the right business insurance. Having coverage can protect your company against lawsuits, property damage, cyberattacks, or employee-related risks.
With so many providers out there, it can be difficult to decide which insurer is the right fit for your business. That’s why we’ve compiled a detailed guide to the 7 best business insurance companies in 2025. Whether you run a retail store, a consulting firm, or an e-commerce startup, this list will help you find an insurer that offers affordability, flexibility, and strong customer support.
1. Hiscox – Best for Small Business Flexibility
Hiscox has built a reputation as one of the top insurers for small businesses. The company specializes in crafting tailored coverage plans for freelancers, consultants, and startups.
- Why It Stands Out:
- Coverage in all 50 states.
- Customized plans for over 180 professions.
- Easy online quotes and same-day coverage.
- Popular Coverages: General liability, professional liability (errors & omissions), cyber liability.
- Best For: Entrepreneurs and small service-based businesses that need flexible, affordable protection.
2. Next Insurance – Best for Digital-First Experience
Founded in 2016, Next Insurance has quickly become one of the best business insurance companies for small businesses in 2025. It offers an entirely digital experience—from application to claims—making it ideal for tech-savvy business owners.
- Why It Stands Out:
- Quick online quotes in less than 10 minutes.
- Affordable monthly payment options.
- Strong focus on small businesses with fewer than 20 employees.
- Popular Coverages: Workers’ compensation, commercial auto insurance, general liability.
- Best For: E-commerce businesses, freelancers, and contractors looking for fast, paperless solutions
3. Nationwide – Best for Broad Coverage Options
Nationwide is one of the largest and most reliable insurance providers in the U.S., with a history of serving both individuals and businesses for nearly a century.
- Why It Stands Out:
- Wide range of coverage options under one roof.
- Nationwide network of agents for personalized support.
- Strong financial stability (A+ rating from A.M. Best).
- Popular Coverages: Business owner’s policy (BOP), commercial property insurance, liability insurance, workers’ compensation.
- Best For: Established businesses that need comprehensive coverage from a well-known provider.
4. The Hartford – Best for Professional Services
The Hartford is widely respected for its business insurance solutions for professional firms, including law practices, accounting firms, and consultants.
- Why It Stands Out:
- Special packages for small businesses.
- Excellent customer service and claims handling.
- Discounts for bundling policies.
- Popular Coverages: Errors & omissions (E&O), business income insurance, professional liability.
- Best For: Professional service providers who need strong liability protection
5. Progressive Commercial – Best for Business Auto Insurance
Progressive is known as a leader in auto insurance, but its commercial division is one of the best options for small businesses that rely on vehicles.
- Why It Stands Out:
- Highly competitive commercial auto insurance rates.
- Coverage available for cars, trucks, vans, and fleets.
- Discounts for bundling with liability or property insurance.
- Popular Coverages: Commercial auto, general liability, workers’ comp.
- Best For: Contractors, delivery companies, and service businesses with vehicles.
6. Chubb – Best for High-Value Coverage
Chubb is one of the largest global insurers and is recognized for offering premium coverage with higher limits. While it may cost more, Chubb provides excellent protection for businesses with valuable assets.
- Why It Stands Out:
- High policy limits and global coverage options.
- Specialized insurance for industries like manufacturing and tech.
- Strong claims service.
- Popular Coverages: Property, liability, cyber insurance, umbrella policies.
- Best For: Growing small businesses with significant assets or those planning international operations.
7. Travelers Insurance – Best for Customizable Policies
Travelers has been around for over 160 years and is one of the most trusted insurers in the U.S. Its strength lies in highly customizable policies for small businesses.
- Why It Stands Out:
- Long-standing reputation for reliability.
- Industry-specific coverage (construction, healthcare, retail, etc.).
- Discounts for bundled policies.
- Popular Coverages: General liability, property insurance, workers’ compensation, cyber liability.
- Best For: Businesses in specialized industries that require tailored coverage.
How to Choose the Right Insurance Company for Your Small Business
Now that you know the best business insurance companies in 2025, how do you decide which one to pick? Consider the following:
- Your Business Size and Industry – Freelancers may prefer Hiscox, while contractors with vehicles may lean toward Progressive.
- Budget – Next Insurance offers affordable monthly premiums, while Chubb provides high-value but pricier coverage.
- Coverage Needs – Professional firms may prioritize liability, while retailers might focus on property insurance.
- Customer Service – Nationwide and The Hartford have excellent support if you prefer hands-on assistance.
FAQs
Q1: Do small businesses legally need insurance in the USA?
Yes, most states require small businesses to carry certain types of insurance, like workers’ compensation or commercial auto coverage.
Q2: How much does small business insurance cost per month?
On average, U.S. small business owners pay between $40 to $100 per month for general liability insurance, depending on the industry and coverage level.
Q3: Can I buy business insurance online?
Yes. Companies like Next Insurance and Hiscox allow you to purchase and manage policies entirely online.
Conclusion
Choosing the right insurer can mean the difference between financial stability and devastating losses for your company. Whether you’re looking for flexible digital-first providers like Next Insurance, affordable tailored coverage from Hiscox, or comprehensive packages from Nationwide or Travelers, this list of the best business insurance companies in 2025 offers something for every type of entrepreneur.
