Business insurance is a type of coverage that protects your work assets from various risks, such as lawsuits, property damage, theft, and injuries. It can also help you comply with contracts and regulations that may require certain types of coverage. Continue reading if you want to get the Best business insurance for an LLC.
There are different types of business insurance that you may need for your LLC(Limited Liability Company), depending on the nature and size of your business. Some of the most common ones are:
- General liability covers your LLC for claims of bodily injury or property damage caused by your operations or products. For example, if a customer slips and falls in your store, general liability insurance can help pay for their medical expenses and legal fees.
- Professional liability covers your LLC for claims of negligence, errors, or omissions in your services. For example, if you are an accountant and make a mistake on a client’s tax return, professional liability insurance can help pay for the damages and legal costs.
- Commercial property covers your LLC for the loss or damage of your business property, such as buildings, equipment, inventory, and furniture. For example, if a fire destroys your office, commercial property insurance can help pay for the repair or replacement costs.
- Commercial auto covers the vehicles that your business uses for its operations, such as cars, trucks, vans, and more. Commercial auto insurance can protect you from liability and property damage claims if you or your employees cause an accident while driving for business purposes.
- Workers’ compensation covers your LLC for the medical expenses and lost wages of your employees who get injured or ill on the job. For example, if an employee gets hurt while lifting a heavy box, workers’ compensation insurance can help pay for their treatment and income replacement. It is required by law in most states if you have employees.
- Cyber liability protects businesses against financial losses resulting from cyber attacks, such as data breaches, ransomware attacks, and interruption.
You can buy these types of coverages separately or as part of a package called a business owner’s policy (BOP). A BOP combines general liability, commercial property, and other coverages that are tailored to your specific industry and needs.
Business insurance average rates
The cost of business insurance for LLCs varies depending on several factors. Such as the type and amount of coverage you need, the type of work, the industry and location of your business, the number and characteristics of your employees, and your claims history. However, here are some general averages for some of the most popular types of coverage:
| Coverage Type | Average Cost |
| General liability | $25-$45 per month |
| Professional liability | $26-$45 per month |
| Workers’ compensation | $30-$60 per month |
| Commercial property | $55-$100 per month |
Factors to consider when choosing a business insurance provider
Based on business insurance guide, the best providers for LLCs offer convenient packages, great customer service, and competitive prices. Some of the factors that you may want to consider when choosing a provider are:
- The types and amounts of coverage that your LLC needs, such as general liability, professional liability, commercial property, workers’ compensation insurance, and others.
- The financial strength and reputation of the company can indicate its ability to pay claims and provide quality service.
- The customer satisfaction and complaint level of the company can reflect its responsiveness and reliability.
- The availability and accessibility of the company, such as whether it offers online quotes, online purchases, online claims, and online support.
Best business insurance companies for LLC list
Based on the above factors, some of the best Commercial insurance providers for LLCs are:
- Next Insurance
- Nationwide
- Chubb
- CNA
- State Farm
1- Next Insurance
Next Insurance is a relatively new company. They were founded in 2016. It is a digital insurance company that provides coverage to small and self-employed businesses. They offer various coverage options, including general liability, professional liability, workers’ compensation, and commercial property insurance. Next is known for its easy-to-use online platform and quick and affordable quotes.
Next is an online platform that offers tailored policies for thousands of professions. You can get a quote and buy a policy online in minutes. Next has an A- (Excellent) rating from A.M. Best and a shallow complaint level. There are many pros and cons of using Next Insurance, such as an easy-to-use online platform, Quick and affordable quotes, Comprehensive coverage, and Excellent customer service. But Next is only available in the United States. Also, it does not offer all types of policies. For example, they do not offer commercial auto insurance.
Next is a good option for many small businesses and the self-employed. They offer various coverage options, competitive rates, and excellent customer service.
2- Nationwide
Nationwide Business Insurance is one of the largest and leading providers in the U.S. They offer a variety of products and solutions for small and large businesses. Nationwide has over 90 years of experience in the industry and has an A+ rating from A.M. Best. Some of the products that Nationwide offers are Business owners policy (BOP), Commercial Auto, Commercial Property, Workers’ compensation, and Commercial agribusiness insurance. They also offer a variety of other products, such as professional liability, cyber liability, and pollution liability insurance.
Based on Nationwide Business Insurance Reviews, the benefits of using Nationwide are discounts for businesses with good claims histories, and a variety of safety resources to help them reduce their risk of accidents and injuries. And a variety of payment options to make it easy for businesses to pay their premiums. You can get a quote from the Nationwide website. You can also find a local agent who can help you with your needs.
3- Chubb
This global insurer offers a wide range of coverage options, including professional liability and cyber insurance. You can buy a business owner’s policy, general liability, professional liability, and other common types of coverage online. Based on Chuub Business Insurance Reviews, it is known for its financial strength, its expertise in underwriting complex risks, and its commitment to customer service. It has an A++ (Superior) rating from A.M. Best and a shallow complaint level. But Chubb Insurance is a more expensive company than some of its competitors. Also, Chubb may not be the right choice for businesses with very simple needs.
You can get a quote from the Chubb website, or find a local Chubb agent.
4- CNA
CNA is one of the best business insurance companies for LLCs that offers a wide range of products and services to businesses of all sizes. CNA Insurance is a good choice for businesses of all sizes, from small to large corporations. They offer a wide range of coverage options, competitive rates, and excellent customer service. However, it is important to compare quotes from multiple companies before purchasing a policy to ensure you are getting the best deal.
Based on CNA business insurance reviews, it is known for its focus on risk management. It has a strong reputation for customer service. CNA’s claims adjusters are known for being responsive and helpful. CNA specializes in underwriting complex risks. If your business has simple needs, you may be able to find a more affordable policy from a different company.
You can get a quote for CNA online. You can also find a local CNA agent.
5- State Farm
State Farm is one of the largest insurance companies in the United States, offering various products. State Farm is a good choice for many businesses, regardless of size or industry. They offer various coverage options, competitive rates, and excellent customer service.
There are many benefits to using State Farm for LLC, including:
- Financial strength and stability: State Farm is a Fortune 500 company with an A+ rating from A.M. Best, a leading rating agency. This means that you can be confident that State Farm will be financially able to pay your claims if you need to file them.
- Wide range of coverage options: State Farm offers a wide variety of products to meet the needs of different businesses.
- Customizable policies: State Farm can work with you to create a customized policy that meets the specific needs of your work.
- Local agents: State Farm has a network of local agents who can help you choose the right coverage for your business and answer any questions you have.
- Additional offers: It offers discounts for businesses with good claims histories, a variety of safety resources to help them reduce their risk of accidents and injuries, and a variety of payment options to make it easy for businesses to pay their premiums.
State Farm also has some disadvantages, including:
- State Farm does not allow you to request a quote online
- They only offer online claims filing for commercial auto policies
- State Farm received more complaints than expected from state regulators about its commercial property, commercial auto and workers’ compensation insurance policies
You can also take a small biz quiz here to determine which products to consider for your business. To get a quote or find an agent near you, you can enter your ZIP code here or call 844-242-1899.
How to get the best and cheapest business insurance for an LLC
Here are some steps you can follow to get the best and cheapest commercial insurance for your LLC:
- Determine what coverage types you need. Depending on the nature and size of your work, you may need different types of business insurance, such as general liability, professional liability, commercial property, workers’ compensation, and others. You can use online tools like Tivly or Simply Business to compare quotes from multiple providers.
- Shop around for cheap business insurance. Once you know what coverage types you need, you can compare prices and features from different companies. You can use online platforms like NerdWallet or Forbes Advisor to find the best small-business options for your LLC.
- Bundle your policies together. One of the best ways to get cheap business insurance is to buy multiple policies from the same company. One way to do this is by purchasing a business owner’s policy (BOP), which combines general liability, commercial property, and business interruption insurance. A BOP can save you money and simplify your billing process.
- Review your policy regularly. You should review your policy at least once a year or whenever there are significant changes in your business, such as hiring new employees, expanding your services, or moving to a new location. This way, you can make sure that your coverage is adequate and up-to-date, and that you are not paying for unnecessary or outdated coverage
