Best Small-Business Insurance Companies of 2025

Running a small business comes with many responsibilities, including preparing for the unexpected. From property damage to data breaches to legal trouble, the right business insurance coverage could protect your livelihood and provide you with a little peace of mind.

Of course, every company is different. Depending on your risks, your business might need liability insurance, commercial vehicle insurance, property insurance, business interruption insurance, or a mixture of coverages.

The following guide will help you compare business insurance companies, understand your coverage options, and confidently purchase the right policy for your situation.

5 best business insurance companies of 2025

We compared insurers to help small-business owners shop for the best business insurance. We evaluated insurance companies based on affordability, industry ratings and rankings, customer reviews, ease of purchase, and available coverage options. Here’s what we found.

Insurance Company	Best For	Pros	Cons
State Farm	General liability insurance	AM Best financial strength rating of A++ (Superior) Customizable policies   Solid customer satisfaction	Limited online-only purchase options  Most policies require working with an agent Group life not available in all states
Allstate	Customer service	Broad coverage options Strong customer satisfaction rating Mobile app and agent support	Must call to get a quote No online filing for claims Business insurance not available in every state
Next Insurance	Digital-savvy small-business owners	Fast online quotes Fast access to certificate of insurance (COI) Fully digital policy management	No phone support option during quote process Not available in every state Discounts vary by state
American Family	Robust coverages	Highest J.D. Power customer satisfaction rating for 2024 Broad coverage options, including cyber liability and flood insurance Strong digital claims tools	Coverage limits not available online Some products aren’t available for online quoting Available in only 19 states
Thimble	Freelancers and sole proprietors	Flexible short-term policies Excellent financial strength rating Low-cost entry coverage	Limited phone and in-person agent support Cyber liability coverage not available in every state Workers’ compensation not available in every state

State Farm: Best for general liability insurance

State Farm stands out for its general liability insurance and customizable small-business policies, as well as its AM Best financial strength rating of A++ (Superior). It also has the second-highest overall customer satisfaction rating in the J.D. Power 2024 U.S. Small Commercial Insurance Study.

Plus, its large agent network provides easy access to personal guidance when you need it.

Allstate: Best for customer service

Allstate scored well above the industry average in the J.D. Power 2024 U.S. Small Commercial Insurance Study, indicating a high level of customer satisfaction. It also has fewer complaints on the National Association of Insurance Commissioners’ (NAIC) complaint index.

With a wide range of coverage options and a mobile app to simplify policy management and claims processing, Allstate provides both convenience and reliability.

Next Insurance: Best for digital-savvy small-business owners

Next provides a fully digital business insurance experience. You can get instant online quotes and instant certificates of insurance after setting up coverage if you need proof of insurance in a hurry. And you can file most claims online.

American Family: Best for robust coverages

American Family stands out as a top choice for business insurance thanks to its extensive coverage options and outstanding customer service score. The insurer offers a wide range of insurance coverages, including cyber liability insurance, commercial auto insurance, product liability insurance, plus add-ons and customizable business insurance solutions.

If you’re looking for multiple business insurance policies from a single trusted source, American Family may be worth considering.

Thimble: Best for freelancers and sole proprietors

Thimble allows freelancers and sole proprietors to buy policies by job, month, or year. It also offers numerous coverage options, including general liability insurance, professional liability insurance, business owners policies, and more.

The insurers’ affordable premiums, instant COIs, and simple liability options can help small-business owners operating on a tight budget protect themselves without overcommitting financially.

What types of business insurance do you need?

The types of insurance coverages you need for your business will depend on a variety of factors. Details like your operations, industry, employees, and liability risks all play a role when you’re choosing the right coverage.

Here are some types of business insurance you may want to consider for your company:

• General liability: If your small business faces a claim for property damage, bodily injury, medical expenses, wrongful termination, or lawsuits, this insurance covers your financial losses.^[1]

• Commercial auto insurance: This insurance covers vehicles that your business owns or uses for work. It can help pay for repairs, injuries, and liability claims that result from covered accidents.

• Commercial property insurance: This coverage protects your building and equipment if your business experiences covered losses like fire, theft, or vandalism.

• Business interruption insurance: This business insurance helps replace lost revenue and cover some expenses if your business has to close temporarily due to a covered event, like fire or theft.

• Workers’ compensation insurance: If an employee gets injured or becomes sick due to their job, this coverage can pay for their medical expenses, lost wages, rehabilitation and retraining. It can even provide permanent or temporary disability benefits.

• Professional liability insurance: Sometimes called errors and omissions (E&O) insurance, this coverage can protect you from losses if a customer files a legal claim that you or an employee was negligent or made a mistake.

• Product liability insurance: This protection is sometimes included with general liability business insurance coverage. It can help you with claims related to injuries or damages caused by products your business makes or sells.

• Business owners policy (BOP): A BOP bundles commercial property and general liability insurance into a single business insurance policy. In general, you pay a single premium for a BOP policy (often at a discount).

What business insurance covers

Business insurance protects your business from financial losses due to unexpected events like lawsuits, accidents, or property damage, but every policy is different. You may also need multiple policies to fully cover your business, equipment, vehicles, and employees.

Common business insurance coverage includes:

• Bodily injury or property damage you or an employee cause

• Lost income during business closure

• Legal defense costs

• Repair or replacement of your business’ damaged property

Keep in mind that business insurance won’t cover every type of loss. Intentional acts, fraud, wear and tear, or damages that result from unreported risks are a few examples of losses your business insurance policy probably won’t cover.

Other types of business insurance to consider

Depending on your type of business, you may need specialized protection beyond standard small-business insurance.

Here are several options to consider:

• Cyber liability insurance: This coverage protects against data breaches and cyberattacks against your business. It should also pay to defend you in lawsuits or regulatory investigations related to a cyberattack.^[2]

• Employment practices liability insurance: This business insurance provides financial protection if an employee claims your company violated their legal rights. Claims may be for discrimination, wrongful termination, sexual harassment, and more.^[3]

• Home-based business insurance: This coverage can help you with unexpected claims that may arise from running a business out of your home.

How to buy business insurance

Finding commercial auto insurance can be easy. Quote comparison websites can help. But filling all your business insurance needs will take careful planning and research.

Follow these steps to buy a business insurance policy:

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  1. Assess your risks

  Identify possible financial losses to figure out the type(s) of protection you may need. For example, if you or any employee drives a company-owned vehicle for work, you likely need commercial auto insurance.

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  2. Compare insurance quotes

  Get quotes from multiple business insurance companies to make sure you find the best deal available for your situation.

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  3. Choose the right insurance coverages

  Match your small-business insurance policies to your liability exposures.

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  4. Apply for a policy

  Be sure to provide accurate business details on your application to avoid potential problems and make the process as smooth as possible.

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  5. Read the fine print

  It’s important to understand coverage exclusions and your policy limits.

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  6. Pay your premiums

  Once you select a policy (or policies) that work for you, be sure to pay your premiums on time to keep your coverage active.

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