The 2020 Guide to Small Business Liability Insurance

Small business liability insurance can provide coverage for your business during difficult times. Read about the best providers for more information.

Updated on December 12th, 2019

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Small business liability insurance is a type of insurance that is intended to protect your business from any claims that might come against it. Claims could include personal injury, property damage, and/or defective products.

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Our Pick

Coverwallet

Small Business Insurance

Get Free Quote

Available 24/7.

Competitive rates.

Receive quotes in minutes.

Why We Chose CoverWallet:

CoverWallet finds insurance that fits. CoverWallet's assessment system identifies the insurance that best suits a specific business and industry and then sources quotes from providers. It is a very simple system, without the obligation to buy anything.

CoverWallet makes it easy to manage policies and make decisions. The platform has a user-friendly dashboard from which policies can be managed and claims can be filed, 24/7. CoverWallet also gives businesses access to dedicated insurance professionals.

Things to Consider When Evaluating Small Business Liability Insurance:

  1. Opting for the cheapest policy could leave you exposed to greater risk. Be sure that, whatever the price, you are receiving the desired coverage.
  2. Be sure you understand the limits, premiums, deductibles, and exclusions of the policy before buying it.
  3. Consider the reputation of the insurance provider. Find customer reviews. And, make sure the provider is a licensed insurer.

Best Small Business Liability Insurance:

Our Rank

Company

AM Best Financial Rating

Reviews

1.

CoverWallet

A

An insurance marketplace with intuitive dashboard and 24/7 service.

2.

Progressive

A+

Offers a wide range of products and policy bundles at reasonable rates.

3.

The Hartford

A+

Offers a range of insurance products, insurance bundles, and online calculation tools.

4.

AIG

A

Major service provider offering 24/7 claims hotline.

5.

Hiscox

A

Offers industry-specific solutions and has a reputation for good customer service.

6.

Chubb

A++

Well-established company focused mainly on cyber security insurance.

7.

Liberty Mutual

A

Offers a range of insurance products specifically designed for small businesses.

8.

Nationwide

A+

Offers a range of products, nationwide. Some complaints about customer support.

9.

Allstate

A+

Offers a wide range of insurance products, safe driver bonuses, and policy bundles.

10.

State Farm

A++

Offers easy online application and product discounts. Has basic plans for small businesses specifically.

11.

Geico

A++

Major service provider offering a range of products for small business at competitive pricing.

FAQs:

How much is liability insurance for a small business?

Liability insurance plans typically cost between $400.00 and $600.00 per year. There are many factors that are involved in calculating your small business liability insurance cost, such as the size of your business, number of employees, annual revenue, and assets.

What kind of liability insurance do you need for a small business?

You need liability insurance for claims that could arise for personal injury, property damage, and defective products.

Liability Insurance Small Business

What is the best liability insurance for small business?

General Liability Business Insurance

What is general liability insurance for small business?

It is a type of business liability insurance that offers limited liability coverage for bodily injury, property damage, and a variety of other situations.

Do you need liability insurance for an LLC?

Yes. Even though an LLC separates your personal assets from your business's, it can still be sued for damages. For this reason, it is a good idea to have liability insurance.

What are AM Best financial ratings?

AM Best is a company that publishes independent financial ratings of insurance providers and other companies. Small businesses can look at these ratings to gauge an insurance provider's ability to pay out claims. Essentially, the higher the rating, the better their ability to pay up when a claim comes through.

Does liability insurance for small businesses cover personal injury claims?

Insurance providers typically require you to purchase a specialized personal injury package since these claims might not be covered by general liability insurance.

What is the difference between commercial general liability insurance and regular liability insurance?

Commercial liability insurance usually has higher limits and more coverage than liability insurance for small business. Small business general liability insurance policies are more affordable than commercial options because they are used on a smaller scale.

What is personal liability insurance for small business?

If you are a freelancer or sole proprietor then you are personally liable if anything goes wrong in your business. Because of this, many sole proprietors purchase personal liability insurance as a safety net.

How can I get multiple general liability insurance quotes and compare them?

Services like netQuote allow you to input your information and then receive a customized small business liability insurance quote from a number of different insurance providers. You can use these quotes to compare prices and plans and figure out which option is best for your business.

How can I find small business liability insurance near me?

You may be able to visit an insurance broker or an insurance office in your area. However, if you aren't able to find any solutions locally, you can always contact a national insurance provider directly and they can provide you with a quote.

How can I find small business liability insurance near me?

You may be able to visit an insurance broker or an insurance office in your area. However, if you aren't able to find any solutions locally, you can always contact a national insurance provider directly and they can provide you with a quote.

Can you help me find the best small business insurance companies in Florida?