Cheap Business Insurance in 2024 (Save With These 10 Companies!)
State Farm, Progressive, and Nationwide emerge as the top companies that offer cheap business insurance. These companies excel not only in cost-effectiveness but also in catering to the unique needs of businesses, making them stand out as the top choices in the realm of cheap business insurance.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
UPDATED: Feb 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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13,128 reviewsCompany Facts
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3,019 reviewsCompany Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
3,019 reviewsExplore top-tier cheap business insurance companies like State Farm, Progressive, and Nationwide. These frontrunners offer diverse policy options and exceptional customer service. Delve deeper into our analysis to unveil the best company for your business’s unique needs.
Business insurance is a valuable coverage that helps protect your business from theft, lawsuits, loss of income, and other damaging situations that could ruin your business. Without business insurance, your company won’t have financial protection from potentially devastating situations that are out of your control.
Our Top 10 Best Companies: Cheapest Business Insurance
| Company | Rank | See Pros/Cons | Monthly Rates | Business Size Discount | Best For |
|---|---|---|---|---|---|
 | #1 | State Farm | $33 | Up to 15% | Multi-Policy Discounts |
 | #2 | Progressive | $39 | Up to 20% | Policy Options |
 | #3 | Nationwide | $44 | Up to 12% | Customizable Policies |
 | #4 | USAA | $22 | Up to 18% | Customer Service |
 | #5 | Farmers | $53 | Up to 22% | Diverse Coverage |
 | #6 | Allstate | $61 | Up to 16% | Bundle Discounts |
 | #7 | Travelers | $38 | Up to 21% | Industry-Specific Coverage |
 | #8 | Hartford | $43 | Up to 17% | Tailored Coverage |
 | #9 | Liberty Mutual | $68 | Up to 19% | Financial Stability |
 | #10 | CNA | $89 | Up to 14% | Bundling Policies |
However, if the price tag of the top business insurance coverages gives you pause, you can find cheap business insurance that offers good protection at a lower cost. Continue reading to learn all about cheap business insurance, from some cheaper companies to ways to save on your policy.
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#1 – State Farm: Diverse Coverage Expert
State Farm emerges as a top choice for cheap business insurance, offering diverse policy options and exceptional customer service.Ty Stewart Licensed Life Insurance Agent
Pros
- Bundling policies: Offers significant discounts for bundling multiple insurance policies.
- High low-mileage discount: Provides a substantial discount for low-mileage usage.
- Wide coverage options: Offers various coverage options tailored for different business needs.
Cons
- Limited multi-policy discount: The multi-policy discount is not as high compared to some competitors.
- Potential premium costs: Despite discounts, premiums might still be relatively higher for certain coverage levels.
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#2 – Progressive: Policy Options Leader
Pros
- Policy options: Offers a wide range of policy options to cater to various needs.
- High multi-policy discount: Provides a generous discount for bundling multiple policies.
- Flexible payment options: Allows for flexible payment plans to suit different financial situations.
Cons
- Potentially higher premiums: Premiums might be higher compared to some competitors.
- Limited low-mileage discount: Doesn’t offer as substantial a discount for low-mileage usage as some others.
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#3 – Nationwide: Customizable Policies Pioneer
Pros
- Customizable policies: Provides options to tailor policies to individual needs.
- Multi-policy discounts: Offers discounts for bundling multiple policies.
- Strong financial stability: Known for its financial stability and reliability.
Cons
- Higher premium costs: Premiums might be higher compared to some competitors.
- Limited coverage options: Some niche coverage options might be lacking compared to other providers.
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#4 – USAA: Customer Service Champion
Pros
- Exceptional customer service: Known for top-notch customer service and member satisfaction.
- Multi-policy discounts: Offers discounts for bundling multiple policies.
- Competitive premiums: Provides competitive premiums, especially for military members and their families.
Cons
- Limited availability: Only available to military members, veterans, and their families.
- Limited coverage options: Might not offer as diverse coverage options as some other providers.
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#5 – Farmers: Diverse Coverage Specialist
Pros
- Diverse coverage options: Offers a wide range of coverage options to meet various needs.
- High multi-policy discount: Provides significant discounts for bundling multiple policies.
- Strong financial stability: Known for its financial strength and stability.
Cons
- Higher premiums: Premiums might be higher compared to some competitors.
- Limited availability: Not available in all areas, which can restrict options for some customers.
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#6 – Allstate: Bundle Discounts Expert
Pros
- Bundle discounts: Offers attractive discounts for bundling multiple insurance policies.
- Strong financial stability: Known for its financial strength and stability.
- User-friendly technology: Provides convenient online tools and resources for managing policies.
Cons
- Higher premiums: Premiums might be higher compared to some competitors.
- Limited low-mileage discount: Doesn’t offer as substantial a discount for low-mileage usage as some others.
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#7 – Travelers: Industry-Specific Coverage Leader
Pros
- Industry-specific coverage: Specializes in providing tailored coverage for specific industries.
- High multi-policy discount: Provides significant discounts for bundling multiple policies.
- Strong financial stability: Known for its financial strength and stability.
Cons
- Higher premiums: Premiums might be higher compared to some competitors.
- Limited availability: Not available in all areas, which can restrict options for some customers.
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#8 – Hartford: Tailored Coverage Specialist
Pros
- Tailored coverage options: Offers customized insurance solutions to meet individual business needs.
- Multi-policy discounts: Provides discounts for bundling multiple policies.
- Strong reputation: Known for its reliability and customer satisfaction.
Cons
- Higher premiums: Premiums might be higher compared to some competitors.
- Limited availability: Not available in all areas, which can restrict options for some customers.
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#9 – Liberty Mutual: Financial Stability Leader
Pros
- Financial stability: Known for its strong financial stability and reliability.
- Multi-policy discounts: Offers discounts for bundling multiple policies.
- Nationwide coverage: Provides coverage options in all 50 states.
Cons
- Higher premiums: Premiums might be higher compared to some competitors.
- Limited coverage options: Some niche coverage options might be lacking compared to other providers.
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#10 – CNA: Bundling Policies Expert
Pros
- Bundling policies: Offers significant discounts for bundling multiple insurance policies.
- Competitive premiums: Provides competitive premiums for bundled policies.
- Strong financial stability: Known for its financial strength and stability.
Cons
- Limited availability: Not available in all areas, which can restrict options for some customers.
- Potentially higher premiums: Premiums might be higher compared to some competitors.
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Cost of Business Insurance
To find cheap small business insurance, it’s important to understand what rates cost on average for different types of business insurance. This will help provide you with a baseline when comparing quoted rates for your company.
Which coverages you need will depend upon your type of business and what is required by law in your state. When calculating your business insurance rates, insurance companies will look at a number of different factors to assess risk. For example, some of the factors that insurance companies will look into for a general liability business insurance policy include the following:
- Your business’s location. Insurance companies want to know what area your business is in to assess local risks, as well as the size of your building and its overall condition.
- Your business type. Insurance companies want to know what your business is so they can assess risks associated with your business, as a construction business will be at higher risk than a bakery business.
- Your business’s time in business. Insurance companies want to know this because well-established businesses will be less risky to insure than new businesses that are not as financially stable.
- Your claims history. Insurance companies want to see if you have filed any claims in the past and, if so, what you filed the claims for, as this will help them determine the future risk of you filing another claim.
Basically, the riskier your business is to insure, the more insurance companies will charge you. However, you can find cheap insurance for businesses by shopping among cheaper companies and utilizing our savings tips, which we will go over in the next few sections.
Cheapest Business Insurance Companies
When choosing the best company for your needs, remember that it’s important to consider a company’s ratings in addition to its rates. A company may have the cheapest rates on the market but have poor customer service reviews, making it a hassle to work with when filing a claim.
Some insurance companies also sell other types of insurance, such as home or auto insurance. At these companies, you can purchase more than one type of auto insurance in order to get a bundling discount and save on your policies.
We recommend starting with getting quotes from the cheapest small business insurance companies and comparing rates to see which are cheapest for your situation. You can also read our guide on how to choose a business insurance provider for more tips on choosing a company.
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How to Save on Business Insurance
If you are looking to save on your business insurance policy, there are a number of steps you can take to reduce your costs. We’ve outlined our best tips on getting cheap business insurance below.
Look for Policy Discounts
Discounts are one of the best ways to save on insurance policies. Check to see if there are any discounts you can earn on your business policy, such as discounts for automatic payments or going paperless. If your insurance company sells other types of insurance besides business insurance, check for a bundling discount.
A bundling discount is one of the larger discounts you can earn on a business insurance policy. You can earn a bundling discount by purchasing more than one type of insurance from your company, such as business and home insurance or business and auto insurance.
The only thing we caution people about with the bundling discount is to make sure you are getting a good deal on both types of insurance. For example, let’s say that a company offers cheap business insurance but has higher-than-average rates for home insurance. In this case, the discount you earn for bundling home and business insurance may not be as good as simply purchasing your home insurance from a different company.
If you can’t find enough discounts to save money on your business insurance, learn how you can save more on your auto insurance with auto insurance discounts.
Manage Your Business Risks
Because risk is a major factor in what business insurance companies charge you for business insurance, working to manage your risks will help you reduce your rates. Make sure you have disaster safety plans in place and frequently keep up to date on your safety protocols if you have employees.
You can ask your insurance company for other tips and tricks to reduce your risk. The more you work on getting safety plans in place and reducing the risk to your company, the more you can save on your business insurance policy.
Raise Your Deductible
Your business insurance deductible is the monetary amount you agree to pay for damages after a covered claim. Because this takes some of the financial responsibility off of your insurance company, your insurance company will reduce your business insurance rates.
While it can be tempting to raise your business insurance deductible higher and higher to reduce rates, make sure that the amount is still an amount you can afford to pay without financial distress. Otherwise, if you file a claim, it could be devastating to your business if you can’t afford to pay the deductible for situations where your business needs repairs or legal assistance.
Research Coverage Options
When buying business insurance, make sure you are doing your research into what coverages you need and which coverages you can skip. Cutting out unnecessary coverages for your business can help you save on your policy. Some of the basic types of business insurance coverage are as follows:
- Business income insurance: This business insurance helps pay your business expenses like payroll or rent after a covered property damage claim.
- Commercial property insurance: This business insurance protects your rented or owned building that your business operates out of.
- Commercial auto insurance: This business insurance is auto insurance protection for any company vehicles that are used for your business.
- Data breach insurance: This business insurance, also known as cyber insurance, helps pay for related costs if personal information is leaked during a data breach. Learn more about the importance of cyber insurance for business.
- General liability insurance: This business insurance helps protect you if someone is injured, someone’s property is damaged, or personal injury like slander.
- Professional liability insurance: This business insurance helps protect you if you are sued by someone claiming you made an error when providing services.
- Worker’s compensation insurance: This business insurance provides benefits like paying medical bills and lost wages to your employees if they are hurt or become sick from their job.
Bear in mind that commercial property insurance doesn’t cover earthquake or flood damage. You will have to purchase these coverages separately, but you should definitely do so if your business is in a high-risk area for earthquakes or floods. In addition, some of the coverages above are required, such as worker’s compensation, while others are optional, so be aware of what business insurance coverages you are required to carry when calculating your rates. You should be able to find cheap business liability insurance following the tips on this list.
Shop Around for the Cheapest Business Insurance
We saved one of our best tips for last. One of the best ways to find affordable small business insurance policies is to shop around. You should get quotes from at least a few different companies so that you can compare rates and see which company offers cheaper business insurance.
You should also get new quotes anytime something major changes in your business or if it has been a while since you got quotes to maintain affordable business insurance. This is because insurance companies are always competing with each other to offer the best rates and attract customers. The company that was the cheapest for your business five years ago may no longer be the cheapest option out there.
The Final Word on Cheap Business Insurance
It is easier to find cheap business insurance if your business is well-established and low-risk. However, all businesses may be able to lower their business insurance costs by shopping around at the cheapest business insurance companies, looking for discounts, and more.
If you want to get started on comparing rates to find the cheapest business insurance, use our free quote comparison tool. It will help you find the best business insurance rates from companies in your area.
Frequently Asked Questions
What are the four kinds of business insurance?
The primary types of business insurance that most businesses carry are liability insurance, property insurance, commercial auto insurance, and worker’s compensation insurance. However, depending on your business’s needs, you may need more or less coverage.
What should a small business spend on insurance?
Generally, insurance for a small business runs about a few hundred dollars a month. However, rates will vary depending on how much insurance the small business needs, how risky the business is to insure, and other relevant factors.
How much is a two-million-dollar business insurance policy?
How much a two-million-dollar business insurance policy will cost depends upon the company. As we stated before, there are several factors that insurance companies look at to calculate rates for business insurance, such as the business’s time in business and occupational risks. The best way to ensure you get a good rate for your business insurance is to shop around and compare rates from different companies.
Do you really need to get business insurance?
Yes, it is wise to get business insurance for your business, as it protects you financially in a number of different situations. In some cases, you are legally required to carry some business insurance coverages, such as worker’s compensation or commercial auto insurance.
Is it possible to find cheap business insurance?
Yes, it is possible to find affordable business insurance. The cost of business insurance can vary depending on several factors, such as the type and size of your business, industry, location, coverage needs, and claims history. By shopping around, comparing quotes from different insurance providers, and considering various coverage options, you can find cost-effective business insurance that suits your needs.
What can I do to lower my business insurance premiums?
There are several strategies you can employ to lower your business insurance premiums. Here are a few tips:
- Assess your coverage needs: Review your coverage to ensure you’re not overinsured. Tailor your policy to your specific risks and eliminate any unnecessary coverage.
- Manage your risks: Implement risk management practices, such as safety protocols, employee training, and security measures, to minimize the likelihood of accidents, property damage, or liability claims. Insurance companies often offer lower premiums to businesses with effective risk management strategies.
- Increase your deductible: Choosing a higher deductible—the amount you pay out of pocket before insurance coverage kicks in—can help lower your premiums.
- Bundle policies: Consider bundling multiple insurance policies, such as general liability, property, and commercial auto insurance, with the same provider. Many insurance companies offer discounts for bundling.
- Shop around: Obtain quotes from multiple insurance providers and compare their coverage options and pricing. This allows you to find the best value for your business insurance needs.
What types of coverage should I consider to keep my business insurance costs low?
To keep your business insurance costs low, consider the following coverage options:
- General liability insurance: This coverage protects your business against claims of bodily injury or property damage to third parties. It is typically a foundational coverage for most businesses.
- Business owner’s policy (BOP): A BOP combines general liability insurance and property insurance into a single package, often at a lower cost than purchasing them separately.
- Professional liability insurance: If your business provides professional services or advice, professional liability insurance can protect you against claims of negligence or errors in your work.
- Commercial property insurance: This coverage protects your business property, including buildings, equipment, inventory, and furniture, against damage or loss.
- Workers’ compensation insurance: If you have employees, workers’ compensation insurance is typically required by law and provides coverage for work-related injuries or illnesses.
Can I reduce business insurance costs by working with an insurance broker?
Working with an insurance broker can potentially help reduce business insurance costs. Insurance brokers have access to multiple insurance providers and can help you compare quotes and coverage options. They can analyze your business’s specific needs, provide recommendations, and negotiate with insurance companies on your behalf. This can potentially lead to cost savings and finding the most suitable coverage for your business.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.