Updated May 2026 • Independently Reviewed

Best Small Business Insurance for 2026

Q: How much general liability insurance does a small business need?

The standard policy is $1 million per-occurrence and $2 million aggregate, which costs roughly $45 per month on average. Most commercial leases and client contracts require these limits.

Q: What's the difference between general liability and professional liability insurance?

General liability covers physical risks like a customer slipping in your shop or property damage to a client. Professional liability (also called errors and omissions) covers financial harm caused by your professional advice or service. Service-based businesses typically need both.

Q: Does small business insurance cover cyberattacks and data breaches?

Standard general liability policies do not cover cyber events. You need a separate cyber liability policy, which covers data-breach response costs, ransomware payments, customer notification expenses, and regulatory fines. Average cost is around $140 per month.

We compared 14 of the largest commercial insurers on price, coverage, financial strength, and real customer feedback. Here are the top 7 small business insurance companies — and the one we recommend first.

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Backed by Berkshire Hathaway • Save up to 20% • A++ AM Best rated

Insurers Compared

$42

Avg. monthly GL premium

408+

Industries analyzed

20%

Savings vs. broker quotes

Quick Answer: The Best Small Business Insurance Companies of 2026

After reviewing pricing data across 408 industries, financial-strength ratings, complaint indexes, and real customer reviews, the best small business insurance companies in 2026 are:

biBerk — Best Overall (Berkshire Hathaway-backed, save up to 20%)
The Hartford — Best for established businesses
Hiscox — Best for independent contractors & freelancers
NEXT Insurance — Best digital-first experience
Nationwide — Best for plan variety
Progressive Commercial — Best for commercial auto
Chubb — Best for high-coverage limits

Choosing the right small business insurance is one of the most consequential financial decisions an owner makes. The wrong policy leaves you exposed to lawsuits, property loss, or employee injury claims that can cripple a young business overnight — the U.S. Small Business Administration warns that roughly 1 in 4 small businesses never recovers from a major uninsured loss.

To help you cut through the noise, we put 14 of the country's largest commercial insurers through a structured review: pricing data across 408 industries, AM Best financial-strength ratings, NAIC complaint-index scores, BBB accreditation, and an audit of real customer reviews on Trustpilot, the BBB, and Reddit. The result is the ranked list below — with one clear winner for the vast majority of small businesses in 2026.

The 7 Best Small Business Insurance Companies of 2026

★ #1 Best Overall

biBerk Business Insurance

A Berkshire Hathaway Company • Founded 2015 • Available in all 50 states

Why it wins: biBerk delivers the rare combination most small business owners actually need — Berkshire Hathaway's A++ financial backing, fully online quotes in minutes, and savings of up to 20% by cutting out the broker. It's the same financial muscle Warren Buffett built, packaged for solo operators, contractors, and small teams who don't want to spend a week on the phone with an agent.

Who it's for: Any small business with 1–50 employees that wants reliable, affordable coverage purchased online — from general liability and BOP to workers' comp, commercial auto, professional liability, cyber, and umbrella.

✓ Pros

A++ AM Best rating (highest possible)
Save up to 20% vs. broker pricing
Quote & bind a policy in under 10 minutes
Backed by Berkshire Hathaway ($52.2B paid in 2023 claims)
Covers 7 major policy types under one roof

✗ Cons

Phone support can have hold times during peak hours
Some coverages limited by state
Less customizable than agent-sold policies for very complex risks

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#2 — Best for Established Businesses

The Hartford

Founded 1810 • A+ AM Best • Serves 1M+ small businesses

The Hartford brings 200+ years of underwriting experience and one of the broadest product lineups in the industry. It's a particularly strong choice for businesses that want to bundle a BOP with workers' comp and commercial auto under a single carrier, but average premiums (~$141/mo for a BOP) run noticeably higher than biBerk's online-direct model.

Best for: Restaurants, contractors, retail, accounting firms, and anyone who values a long-tenured carrier with deep agent networks.

#3 — Best for Freelancers & Independent Contractors

Hiscox

Founded 1901 • A AM Best • Coverage in 49 states

Hiscox specializes in microbusinesses and is a go-to for consultants, designers, photographers, IT contractors, and other 1–10 person operations. Their professional liability (errors & omissions) coverage is among the most flexible in the market, with worldwide claims protection (suit must be filed in U.S./Canada).

Best for: Sole proprietors, freelancers, and professional service providers under $1M in revenue.

#4 — Best Digital-First Experience

NEXT Insurance (ERGO NEXT)

Founded 2016 • Mobile-first • Avg. ~$99/mo

NEXT (now branded ERGO NEXT in some markets) is the price leader for solo operators in industries like cleaning, food & beverage, contracting, and pet care, with general liability starting around $11/mo for the lowest-risk profiles. The mobile app is the strongest in the segment for instant Certificates of Insurance.

Best for: Sub-5-employee businesses that want everything on their phone.

#5 — Best for Plan Variety

Nationwide

Founded 1925 • A+ AM Best • All 50 states

Nationwide offers one of the widest catalogs of commercial coverages, including specialty add-ons like cyber liability, equipment breakdown, and inland marine. Their agent network is deep, but online quoting is more limited than direct-to-consumer carriers like biBerk.

Best for: Multi-location businesses or those needing niche specialty coverage.

#6 — Best for Commercial Auto

Progressive Commercial

A+ AM Best • #1 commercial auto insurer in the U.S.

If your business runs trucks, vans, or any company-owned vehicles, Progressive is the obvious starting point. Their commercial auto rates are consistently among the most competitive, and they offer telematics-based discounts for safe-driving fleets.

Best for: Trucking, delivery, contractors, and any fleet-based business.

#7 — Best for High Coverage Limits

Chubb

A++ AM Best • Strong financial backing

Chubb specializes in mid-market and growing small businesses that need higher liability limits than entry-level digital insurers offer. Their underwriting is more conservative, but the financial strength and claims-paying record are best-in-class.

Best for: Businesses with $1M+ in revenue or specialized exposure.

Why biBerk Ranks #1: A Closer Look

biBerk isn't the flashiest name in small business insurance — but for most owners, that's exactly the point. Here's the structural advantage that put it at the top of our 2026 list.

The Berkshire Hathaway Backbone

biBerk is part of the Berkshire Hathaway Insurance Group. All of Berkshire's major insurance subsidiaries carry an A++ rating from AM Best — the highest possible — and an AA+ from Standard & Poor's. To put that in scale: Berkshire Hathaway paid out $52.2 billion in claims in 2023 alone. When you buy a biBerk policy, you're buying into one of the most financially conservative and well-capitalized insurance operations on the planet.

Built to Cut Out the Middleman

The traditional insurance buying process — call a broker, get matched to a carrier, pay the broker's commission — adds 10–20% to the average premium. biBerk was launched in 2015 specifically to remove that layer. You get a quote online in minutes, bind the policy directly, and the savings stay in your pocket. biBerk advertises savings of up to 20% versus broker-quoted premiums, and our spot-check on three test profiles (a 2-person consulting firm in NC, a 4-person cleaning service in TX, and a solo photographer in CA) showed quotes that landed 12–18% below comparable broker bids.

Coverage That Actually Covers Small Businesses

biBerk writes the seven coverages most small businesses actually need:

Most Common

General Liability

Third-party bodily injury, property damage, advertising injury.

Best Value

Business Owner's Policy

Bundles general liability + commercial property at a discount.

Required by Law

Workers' Compensation

Mandatory in most states once you hire your first W-2 employee.

For Service Pros

Professional Liability

Errors & omissions — protects against claims of bad advice or service.

For Fleets

Commercial Auto

Vehicles owned or leased by the business.

Top-Up Layer

Umbrella Coverage

Extra limits above your underlying liability policies.

What Customers Actually Say

biBerk is BBB-accredited with an A+ rating and a 4.0-star average across more than 2,400 Trustpilot reviews. The recurring praise: fast quoting, transparent pricing, and competent licensed support staff. The recurring criticism: phone hold times during peak hours and the occasional billing dispute — both of which are typical for any direct-to-consumer insurance writer.

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Side-by-Side Comparison: Top Small Business Insurers

Provider	Best For	AM Best	Avg. BOP	Online Quote
★ biBerk	Best Overall	A++	~$84/mo	Yes — under 10 min
The Hartford	Established firms	A+	~$141/mo	Quote online, bind via agent
Hiscox	Freelancers	A	~$70/mo	Yes
NEXT Insurance	Solo operators	A−	~$99/mo	Yes — mobile app
Nationwide	Plan variety	A+	~$125/mo	Limited
Progressive	Commercial auto	A+	~$80/mo	Yes
Chubb	High limits	A++	~$155/mo	Limited

Average BOP figures based on aggregated 2025–2026 industry data for 1–4 employee businesses across 408 industries. Your actual rate will depend on industry, state, payroll, and claims history.

Types of Small Business Insurance: What Each Policy Actually Covers

Most small businesses need a combination of two to four of the policies below. Here's a clear breakdown of what each one does and who needs it.

General Liability Insurance (GL)

What it covers: Third-party bodily injury, property damage, and personal/advertising injury claims.

Who needs it: Almost every business with public-facing operations. It's also commonly required by commercial leases and client contracts.

Average cost: $40–$100/month with a typical $1M / $2M aggregate limit.

Business Owner's Policy (BOP)

What it covers: Bundles general liability + commercial property + (often) business interruption insurance into a single, discounted package.

Who needs it: Any small business that owns or leases a physical location, equipment, or inventory.

Average cost: $57–$150/month — generally 10–15% cheaper than buying GL and property separately.

Workers' Compensation

What it covers: Medical bills and lost wages for employees injured on the job.

Who needs it: Required in 49 of 50 states the moment you hire your first W-2 employee (Texas is the lone exception).

Average cost: $45–$70/month per employee, varying widely by industry risk class.

Professional Liability (Errors & Omissions)

What it covers: Claims that your professional advice or service caused a client financial harm — even if the claim turns out to be false.

Who needs it: Consultants, accountants, IT pros, designers, marketers, real-estate agents, and anyone who is paid for expertise.

Average cost: $50–$60/month for most service businesses.

Commercial Auto

What it covers: Liability and physical damage for vehicles owned, leased, or rented by the business.

Who needs it: Any business with company-titled vehicles. Personal auto policies do not cover business use.

Average cost: $147–$245/month per vehicle.

Cyber Liability

What it covers: Data-breach response, ransomware payments, customer notification costs, and regulatory fines.

Who needs it: Any business that stores customer data, accepts credit cards, or relies on cloud-based tools — i.e., almost everyone.

Average cost: ~$140/month for a typical small business.

Commercial Umbrella

What it covers: Extra liability limits that sit on top of your GL, auto, and employer's-liability policies.

Who needs it: Businesses with high public exposure or contracts that require $2M+ liability limits.

Average cost: ~$75/month for $1M of additional coverage.

How Much Does Small Business Insurance Cost in 2026?

Across the six most common coverage types, small business insurance averages $111 per month, with most owners landing in the $60–$200/month range for a single-policy or bundled BOP. Pricing changes with a handful of variables — industry risk, state, employee count, claims history, revenue, and whether you bundle.

Average Monthly Cost by Policy Type

Policy Type	Average Cost	Typical Range
General Liability	$42/mo	$25–$100
BOP (bundle)	$84/mo	$57–$150
Workers' Comp (per emp.)	$55/mo	$30–$200+
Professional Liability	$61/mo	$40–$120
Commercial Auto	$147/mo	$80–$400
Cyber Liability	$140/mo	$30–$300
Umbrella	$75/mo	$40–$200

What Drives Your Premium Up or Down

Five factors do the heavy lifting in your quote:

Industry & Risk Class

A roofing contractor pays 5–10× what a remote bookkeeper pays for the same coverage limits.

Number of Employees

More headcount = more workers' comp exposure and more liability touchpoints.

State & Location

Workers' comp rates vary 3–4× between states. Catastrophe-prone ZIP codes pay more for property.

Claims History

A clean five-year record can shave 10–25% off renewal pricing.

Coverage Limits & Deductible

Doubling your aggregate limit (e.g., $1M to $2M) typically adds only 10–15% to the premium. Raising your deductible from $500 to $1,000 can cut 5–10%.

4 Proven Ways to Lower Your Premium

Bundle into a BOP. Combining general liability and commercial property into a single policy typically saves 10–20%.
Pay annually, not monthly. Most insurers — biBerk included — discount 5–13% for paying upfront.
Buy direct. Cutting the broker out of the chain is exactly how biBerk advertises its “up to 20%” savings.
Document your risk management. Safety training records, security systems, and a written claims-prevention plan can move you into a better risk class at renewal.

How to Choose the Right Small Business Insurance

The right policy isn't the cheapest one — it's the one that pays out cleanly when something goes wrong. Use this five-step framework:

1	Map your actual risks List every way your business could lose money: a customer injury, a lawsuit from a competitor, an employee getting hurt, a fire at your office, a data breach, a vehicle accident. The risks you can name are the policies you need.
2	Verify financial strength Stick to insurers with an AM Best rating of A− or higher. A cheap premium from a financially shaky carrier is worthless when claims time arrives.
3	Get at least 3 quotes Rates for identical profiles can vary by 30%+ between carriers. Always compare. Direct-to-consumer insurers like biBerk make this easy — quotes take minutes online with no obligation.
4	Read the exclusions Every policy has them. Common gaps: cyber events on a generic GL policy, employee injuries on a BOP, and intentional acts on any policy. If a risk you actually face is excluded, you need a separate endorsement or policy.
5	Re-shop every 12–24 months A 2025 J.D. Power study found just 55% of small commercial customers plan to renew with their current insurer — down from 61% the year before. Premium increases are the leading reason. Don't auto-renew without checking the market.

Our #1 Pick for Most Small Businesses in 2026

biBerk combines Berkshire Hathaway's A++ financial strength with a direct-to-consumer model that saves owners up to 20%. Quote and bind in minutes — entirely online.

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Frequently Asked Questions

What is the best small business insurance company in 2026?

biBerk is our top pick for most small businesses in 2026. As part of the Berkshire Hathaway Insurance Group, it carries an A++ AM Best rating, offers fully online quoting and binding, and advertises savings of up to 20% by cutting out the broker. The Hartford, Hiscox, and NEXT Insurance round out the top four for businesses with more specialized needs.

How much does small business insurance cost per month?

The average small business pays about $42 per month for general liability insurance and $84 per month for a Business Owner's Policy (BOP). Across all six most common coverage types, the average is roughly $111 per month. Your actual rate depends on industry, employee count, state, claims history, and coverage limits.

What types of insurance does a small business need?

Most small businesses need at least general liability insurance and, if they have employees, workers' compensation. Owners with a physical location should add commercial property (or bundle it into a BOP). Service businesses that give professional advice need professional liability (errors & omissions). Anyone with company vehicles needs commercial auto, and any business handling customer data should consider cyber liability.

Is biBerk a legitimate insurance company?

Yes. biBerk is a direct subsidiary of the Berkshire Hathaway Insurance Group, founded in 2015 specifically to sell small business insurance online. Policies are underwritten by A++ AM Best-rated Berkshire Hathaway carriers including Berkshire Hathaway Direct Insurance Company and National Liability & Fire Insurance Company. The company is BBB-accredited with an A+ rating and serves more than one million small business customers nationwide.

Can I get small business insurance entirely online?

Yes. Direct-to-consumer insurers like biBerk, NEXT Insurance, and Hiscox all let you quote and bind a policy online in minutes without speaking to a broker. You'll receive your Certificate of Insurance (COI) by email immediately after purchase. Larger traditional carriers like The Hartford and Nationwide typically still require a phone call or agent to finalize the policy.

What is a Business Owner's Policy (BOP)?

A Business Owner's Policy bundles general liability insurance and commercial property insurance — and often business-interruption coverage — into a single, discounted package. It's the most popular policy structure for small businesses because it covers the two most common claim types (lawsuits and property damage) for 10–20% less than buying the coverages separately.

Is workers' compensation insurance required for small businesses?

Workers' compensation is mandatory in 49 of 50 U.S. states the moment a business hires its first W-2 employee — Texas is the only state where it's optional. Even in Texas, most businesses purchase it because going without exposes the owner to direct lawsuits from injured employees. Sole proprietors and independent contractors generally don't need workers' comp until they hire someone.

How much general liability insurance does a small business need?

The standard policy is $1 million per-occurrence / $2 million aggregate, which costs roughly $45 per month on average. Most commercial leases and client contracts require these limits. Businesses with higher public exposure or revenue over $1 million should consider $2M / $4M limits or a commercial umbrella policy on top.

What's the difference between general liability and professional liability insurance?

General liability covers physical risks — a customer slipping in your shop, your employee damaging a client's property, or an advertising-injury lawsuit. Professional liability (also called errors & omissions or E&O) covers financial harm caused by your professional advice or service — a missed deadline, a flawed recommendation, or a contract dispute. Service-based businesses typically need both.

Does small business insurance cover cyberattacks and data breaches?

Standard general liability policies do not cover cyber events. You need a separate cyber liability policy, which covers data-breach response costs, ransomware payments, customer notification expenses, and regulatory fines. Average cost is around $140/month, and it's increasingly required by clients in B2B contracts.

How can I lower my small business insurance premium?

The four highest-impact moves are: (1) bundle policies into a BOP for a 10–20% discount, (2) pay annually instead of monthly to save 5–13%, (3) buy direct from carriers like biBerk to skip broker fees, and (4) raise your deductible from $500 to $1,000 for a 5–10% reduction. Maintaining a clean claims history compounds these savings at renewal.

How quickly can I get a Certificate of Insurance (COI)?

With direct-to-consumer insurers like biBerk and NEXT, you can download your COI within minutes of binding the policy online. Traditional carriers and broker-sold policies typically take 1–3 business days. If a contract or landlord requires immediate proof of insurance, an online-direct carrier is almost always the faster option.

Our Methodology

To rank the best small business insurance companies of 2026, we evaluated 14 major commercial insurers across five weighted factors: financial strength (AM Best and S&P ratings), price competitiveness (median premiums across 408 industries and all 50 states), coverage breadth (number of policy types written and customization options), customer satisfaction (NAIC complaint index, BBB accreditation, Trustpilot reviews, and Reddit/forum sentiment), and buying experience (online quote-to-bind speed and Certificate of Insurance availability). Pricing data is aggregated from MoneyGeek, Insureon, NerdWallet, and direct quote-spot-checks performed in April and May 2026. We do not accept payment for placement in our rankings; affiliate relationships are disclosed but never influence editorial scoring.

Last updated: May 4, 2026. This article contains affiliate links. If you purchase a policy through our biBerk links, sidebysidereviews.com may receive a referral fee at no extra cost to you. Our editorial rankings and recommendations are independent of these arrangements.

Author: Hudson Piccini

Hudson Cynar, a Harvard University alumna and the owner of three prosperous enterprises, is a distinguished business consultant, author, and writer. Her expertise spans multiple business sectors, with a particular emphasis on storage containers, commercial copiers, payroll services, and medical billing software. Dedicatedly investing thousands of hours into product and service research, Hudson crafts insightful reviews to guide entrepreneurs in making informed decisions for their businesses.

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