TLTR: This article discusses the best commercial insurance agencies in the U.S. There’s also information on what kinds of policies you can expect to find in a commercial insurance agency and the basics of buying from a commercial insurance agency.
Owning a business is a high–risk, high-reward profession. Regardless of the size of your business, you are likely to have a business plan. One of the most common things in any business plan is commercial insurance, a sub-type under property and casualty insurance.
Commercial insurance is an encompassing term that describes insurance policies used for commercial setups. There are several types of commercial insurance policies (which we will touch on later). Choosing the right fit among thousands of commercial insurance agencies can be a difficult decision to make. According to the Insurance Information Institute (III), there were almost 2,500 property and casualty insurance companies in the U.S. This number has surely risen as you are reading this article.
To make your decision easier, we have listed out the top commercial insurance companies which we think can be perfect for you. If your preferred commercial insurance agency sells policies from these companies, you can purchase the insurance with ease in your mind.
Best Commercial Insurance Companies in 2023
We have listed some of the best commercial insurance carriers in the US for your consideration. The agencies that made our list are:
Hiscox is one of our top picks because it operates in all the states. Although not an American brand, it has 11 offices throughout the country.
The company specializes in policies like commercial liability, business owners’ policies, workers compensation, cyber insurance, and more. Hiscox’s standard policy offers up to $2 million coverage.
The Hartford is one of the largest commercial insurance carriers for workers’ compensation. The insurance company is also quite famous for its endearing customer service. With the pay-as-you-go plan, the company is the number one choice for small businesses.
Commercial insurance agencies that sell policies from The Hartford may have variations according to the state they sell in. The company has specific policies as per the state and city they sell in.
Although the insurance company has more than 200 years of experience in selling insurance, their application process for claims as well as purchases can be tiresome. But your agency will look after these applications for you.
Nationwide has a large variety of commercial insurance policies which are simple to understand. The company capitalizes on straightforward insurance solutions. Unfortunately, their policies are not yet available in Hawaii or Alaska.
The insurance company offers your standard commercial insurance policies such as general liability, umbrella insurance, commercial auto and property, among others. The company also offers commercial insurance for other industry specials like retailers, farms, restaurants, clinics, and more.
State Farm is one of the best carriers for small businesses. Even their simple general liability policies offer larger policy limits. The company has been around for almost a century and is set up across many states.
However, many agents can’t cross state lines when writing policies. Additionally, their customer service lacks consistency.
State Farm favors bundle insurance policies and offers unique discounts to business owners who combine coverages. Because of State Farm’s independent ownership, the agents understand your business needs on a personal level.
So, if you shop from them, do consider bundling your policies so you can get the best deal.
Travelers is the current number-two commercial property insurance company in U.S., based on the amount of premiums they write.
Established in 1864, this insurance company is also one of the older companies. Today, the company not only serves in all the states but also sells policies in the United Kingdom and Canada.
According to Investopedia, the company is known for being best for commercial property insurance and for business that deal internationally.
Liberty Mutual is a popular name in the insurance industry and for good reason. The company provides round-the-clock claim assistance for its client base. Additionally, the company is branched out evenly throughout the country, so you will have no problem with getting an adjuster to help you with your insurance-related problems.
The company specialized in commercial insurance policies such as inland marine, equipment breakdown, workers’ compensation, commercial auto, and more.
Last but not the least to make it on out commercial insurance company list is Progressive Commercial Insurance. The copany is famous for giving certain discounts for bundling commercial auto insurance with general liability or business owners insurance. However, the discounts are only limited to certain states.
They also operate in all 50 states and can be trusted as one of the top commercial auto insurers in the U.S. The best part for business owners is that, they can save up to 15% on premiums if they decide to pay in full upfront.
Note: If you want to get a quote from any of the mentioned insurance companies, you will can contact agents near you through our insurance directory.
Best Commercial Insurance Agencies
According to the Insurance Journal, here are the top 10 commercial insurance agencies (as of 2021) are:
- HUB International Ltd. (Illinois)
- Acrisure LLC (Michigan)
- Lockton. (Missouri)
- Alliant Insurance Services Inc. (California)
- AssuredPartners Inc. (Florida)
- USI Insurance Services (New York)
- BroadStreet Partners Inc. (Ohio)
- EPIC Insurance Brokers & Consultants (California)
- Confie (California)
- NFP (New York)
Types of Commercial Insurance
Commercial insurance agencies offer a variety of insurance policies which are required for commercial set ups. Some of the most popular ones are:
Commercial Auto Insurance
Numerous businesses find themselves in need of commercial auto insurance and equipment breakdown insurance. This type of coverage is especially helpful for those who rely on vehicles or tools to do their jobs, such as construction companies that use heavy machinery like bulldozers, excavators, dump trucks and more.
Workers Compensation Insurance
Whether you’re a small business owner or part of the construction industry, it’s likely that workers compensation insurance is mandatory. This type of coverage helps protect companies in case an employee sustains injuries during work-related accidents and enables them to cover medical costs for employees injured on the job site.
According to Nolo, the average legal fees in a workplace rights case can cost up to $30,000. Most businesses don’t have that kind of money lying around and it would be best to invest in the policy in order to avoid lawsuits. Workers compensation insurance is a must for all businesses in the construction, manufacturing, repairing, or engineering industries.
Cyber Liability Insurance
Cyber liability insurance is one of the most important policies offered by commercial insurance agencies. The policy is designed to protect your business from cyber threats such as ransomware, hacking, phishing scams, and more.
It comes at an affordable rate for companies, who are looking to protect their information from being hacked by third-parties. Since many businesses hold all types of personal information on their servers, any breach could have lasting financial repercussions.
Business Owners Policy (BOP)
Insurance is an important part of owning a business. All too often, the cost and coverage are overlooked until something bad happens – this can cost you in time spent researching policies or money lost due to theft.
Business owners policy Insurance (BOP) is a popular option for business owners, as it may offer savings by bundling multiple policies together. The risks covered and coverage limits vary by company or carrier but are generally property insurance, general liability protection, crime & inland marine coverage.
Business Interruption Insurance
The key to a successful business is maintaining liquidity. With the right commercial insurance, you can be sure that your company will never miss an opportunity because of unforeseen circumstances beyond your control.
If you’re a business owner, it’s likely that many of your decisions are dominated by finances. Business interruption insurance is a smart investment in terms of commercial insurance. This can help protect your company from financial losses and keep it going if an accident or unexpected event, like natural disasters, prevents you from operating for any period of time.
What Commercial Insurance Agencies Want You to Know
When you try to get a quote from commercial insurance agencies, there are several factors that they must consider when making a premium rate for you. Here are some of the things that go into consideration before you get a quote:
A premium amount or premiums is the monetary amount you will have to pay for certain coverage. There are many factors that determine the cost of a premium and commercial insurance agencies look at all of them, it includes:
- Business type
- Employee number and their payroll
- Work experience
- Condition of office
Often when receiving quotes, you may feel like the cost quite expensive. Make sure you ask your insurance agent to break down the costs for you.
A deductible is the certain amount you have to cover before your insurance policy starts to pay in an unfortunate event. Commercial insurance agencies generally require you to pay flat deductibles, percentage deductibles and waiting periods.
A high deductible policy might mean paying less on a monthly basis but more in case there is an accident.
Insurance has limits for how much they pay out on a given claim or over the course of an insurance policy. This ranges based on what type of coverage you have, and can be anywhere from a few hundred-thousand to even tens of millions.
Commercial policies are set up to limit how much the commercial insurance agency will pay out on a given claim or over its lifetime. When your deductible is met, they’ll only cover you for so long before cutting off coverage and leaving it all to you.
Note: On an average, the general policy limit for commercial insurance is about $2 million.
Exclusions are things that an insurance policy won’t cover. Knowing what exclusions are included in your policy will help you understand if the coverage is right for your business; this includes knowing about any pre-existing conditions and limitations to certain types of damages.
Generally, commercial insurance agencies have exclusions such as:
- Expected damage/injury
- Intended damage/injury
- Liquor liability
- Breach of contract
- Infringement of patents
- Unauthorized use of other products
- And more
Of course, your options aren’t and shouldn’t be limited to only these. If you have any questions about the companies mentioned, or if you want help finding an agency for your company, please contact us.
We can also provide more information on what kind of policies each company offers so that you know exactly what you need before contacting them directly.
Get in touch with a local insurance agent to start your commercial insurance today!
Should I Go With An Insurance Agent Or An Insurance Broker To Buy Commercial Insurance?
If you ask us, we recommend that you pick an insurance agent. This is because an agent is likely to help you out in a claim process, if it comes to it. An insurance broker may try to get you good deal but independent agents work closely to insurance carriers and do work in their client’s interest as well.
Do NGOs Need Commercial Insurance?
Generally, no. Commercial insurance is required for individuals or organizations who operate to make profits. However, you should look into insurance options for your NGO. There are so many things that can go wrong in the day-to-day operations of an NGO and it’s better to stay safe than sorry.
Do Start-Ups Need Commercial Insurance Required?
Every business model should have commercial insurance. This includes start-ups. In fact, start-ups should be keener on having commercial insurance. Mostly because, start-ups are vulnerable to claims and malpractices. This can cause financial burden that is unnecessary.
If you are planning to have a start-up or already are working for one, you can also consider start-up insurance.
Is Commercial Insurance Mandatory?
Commercial insurance policies are generally optional. However, depending on the state you live in, you may have to purchase workers compensation claim. The policy is mandatory in many states if you have more than 2-3 employees.
Despite not being mandatory, we suggest that your do invest in commercial insurance policies. It is suggested to invest in business owners policy, business interruption policy and cyber liability insurance.
February 9th, 2023 · 14 mins read
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