Popular Small Business Insurance Companies
Best Small Business Insurance Company of 2022
- AM Best Rating
- A
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
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- AM Best Rating
- A
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
See Review
- AM Best Rating
- A++
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
See Review
- AM Best Rating
- A+
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
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If you run a business with employees, then workers’ compensation insurance is something you may want to consider. It provides benefits to employees injured on the job, while also offering some protection against lawsuits from injured workers. Below is our list of the Best Workers’ Compensation Insurance Companies of 2022, as well as information to help explain workers’ compensation insurance.
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Best Small Business Insurance Company of 2022
Pros:
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Lots of available policy types, including short-term liability
Cons:
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May not be able to make changes to your policy online
- AM Best Rating
- A
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Our No. 1-rated workers’ compensation insurance company, Hiscox, specializes in business insurance policies. It has a number of coverages available, including short-term liability policies for when you don’t need coverage to last for an entire year. Hiscox is one of the few insurers in our rating that offer this kind of coverage.
You can obtain a quote online, but you may have to contact a company representative if you want to make changes to your account. Hiscox workers’ compensation insurance is available in every state and Washington D.C., but is not available in Alaska.
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Pros:
-
Wide variety of coverage available
Cons:
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Must contact insurance agent for most policy changes
- AM Best Rating
- A
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Like most companies in our rating, Travelers has a wide variety of policies available to make getting all your business insurance coverage in one place easier should you decide that a Travelers workers’ compensation policy is the best fit for your business. For example, there are at least five types of ocean marine policies available, while some companies in our rating don’t have any. It also offers discounts to customers who qualify.
Travelers doesn’t offer online quotes, so you’ll have to go through an agent. You’ll also need to go through an agent if you want to make changes to your policy. This can be a downside if you prefer to make changes to your policy through an app or web portal.
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Pros:
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Coverage available for a wide array of industries
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Policies can be purchased online
Cons:
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No live chat feature on the Chubb website
- AM Best Rating
- A++
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Chubb has a wide variety of policies that can be tailored to specific industries. For example, you can get professional liability policies for businesses in the finance, legal, and engineering sectors. This means there’s a high likelihood that Chubb will be able to provide coverage for your small business insurance needs, including workers’ compensation.
The online experience with Chubb can be a bit of a mixed bag. You are able to purchase a policy online, but if you have questions there is no live chat feature. If you’re a member of the Chubb Customer Service Center, there is phone and email support. If you aren’t a member, you will need to contact your agent or broker to answer your questions.
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Pros:
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Large number of agents nationwide
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Available in all 50 states and Washington, D.C.
Cons:
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Cannot get a quote or file claims online
- AM Best Rating
- A++
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
You can’t get an online quote or file claims online with State Farm. However, it has a network of over 19,000 agents throughout all 50 states and Washington, D.C. to help policyholders and potential policyholders.
It also has a wide variety of available policies that one of its agents can help you sort through. While it has standard policies like a business owners policy (BOP), general liability, and workers’ compensation, it also has more specialized policies like artisan and contractors, which provides coverage while working on job sites other than your home office.
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Pros:
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Policies available for a wide range of businesses
Cons:
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May not be able to purchase online
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Coverage not available in five states
- AM Best Rating
- A+
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Nationwide offers a range of policies that can help provide coverages for niche industries like breweries, consulting firms, and pet shops. This means that if Nationwide’s workers’ compensation policy is what fits your business’s needs best then you will have a good chance of filling out your other insurance needs with Nationwide.
It has a number of ways for you to file claims including online or through your agent.
You can start the process of purchasing a policy online, but depending on the policy you may need to complete the purchase by speaking with a Nationwide agent. Also, Nationwide isn’t available in five states.
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Pros:
-
Wide range of policies available
Cons:
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Doesn’t offer industry-specific policies offered by other companies in our rating
- AM Best Rating
- A+
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Progressive offers a wide range of policies, including coverages like business owners policies (BOP), commercial auto, cybersecurity, and inland marine. Where it may lack is in regards to industry-specific policies like medical malpractice and farm and ranch coverage. It does offer a number of different commercial auto and truck coverages, so depending on your business’s industry, this may not be an issue.
Progressive also offers online quotes, unlike some of the companies in our rating.
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Pros:
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Wide selection of policies
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Available in all states plus Washington, D.C.
Cons:
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Some regions of the U.S. have relatively few local agents
- AM Best Rating
- A+
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
The Hartford is available in all 50 states as well as Washington, D.C., but depending on where you live, it may be difficult to find a local agent.
As with most of the companies in our rating, The Hartford covers a wide variety of business insurance coverages. This may make it easier to obtain all your policies from one insurer. While it doesn’t offer farm and ranch policies, it does have a number of policies that cover livestock.
You can use its website to get a quote and file claims. Its website also has a plethora of articles explaining business insurance policies.
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Pros:
-
Wide range of other policies available
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Available in all 50 states and Washington, D.C.
Cons:
-
May not be able to file claims online
- AM Best Rating
- A
- Can File Claims Online
- General Liability
- Professional Liability
- Workers’ Compensation
Liberty Mutual has a wide variety of other policies available. So, you can get other business insurance policies you may need in addition to workers’ compensation. It is also available throughout the United States.
If you prefer an online claims process, you may have to look elsewhere. However, our research indicates that small businesses with premiums of less than $250,000 a year won’t be able to file claims online.
While we found policies for livestock with Liberty Mutual, we were unable to verify farm and ranch policies. So, if you’re in the agricultural industry, you may want to take a close look at your coverage needs before deciding on Liberty Mutual.
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A workers’ compensation insurance policy provides coverage for your employees if they’re injured on the job. It also can provide compensation benefits such as coverage for medical expenses and lost pay for the injured employee while they’re not working. If a worker is killed in a workplace accident, their family may be eligible for funeral or death benefits. Exactly which benefits are required and at what coverage minimums is regulated by the states.
While there are exceptions, in most states it doesn’t matter who is at fault for the injury. Some of these exceptions include if the employee:
- Was intoxicated (whether drugs or alcohol)
- Started a fight
- Intentionally caused the injury
- Was commuting to or from work
In most states, businesses buy workers’ compensation from insurance companies. However, there are a few instances where workers’ compensation is offered by a state or territorial agency.
The premiums for a workers’ compensation policy are determined by several different factors, including:
- Industry. Industries with higher risks for workplace injuries will have higher workers’ compensation premiums.
- Annual payroll. Insurers will look at your annual payroll to help determine your rates. The larger the payroll, the higher your rates.
- Location. This will factor into your premiums in a couple of different ways. The first is that different states will have different employers’ comp requirements, and this will affect premiums. Also, insurers will look to see what associated risks your business’s location may have, such as the local crime rate or vulnerability to weather-related risks like flooding.
- Claims history. An insurance company may look into your claims history when calculating your premiums. The more claims your business has filed in the past, the higher your premiums will usually be.
According to the Small Business Administration, all businesses with employees must have workers’ compensation insurance. However, many states may grant employers an exemption to that requirement. State regulations also govern which workers are considered employees. Some states won’t count immediate family members, such as children or spouses, as employees for the purposes of determining workers’ comp requirements. Independent contractors also may also not count as employees in some circumstances.
Companies that are required to have workers’ compensation insurance but fail to purchase coverage may be penalized. For example, in Virginia, a business in violation of the Virginia Workers’ Compensation Act can be subject to fines of $250 for each day it is uninsured, as well as a maximum civil penalty of $50,000 plus associated costs.
You should check with your state’s Department of Insurance or Workers’ Compensation Commission for information on any requirements that may pertain to your business. Your insurance company, agent, or broker may also be able to provide you with information on local requirements.
How much workers’ compensation coverage you need will likely depend on where your company is located. Your state or territory will likely determine which of your workers counts as an employee. It will also determine whether or not you’re required to have workers’ compensation, and who should be covered by the policy.
States may also regulate the benefits included in a workers’ comp policy. For example, one state may require a workers’ compensation policy to provide benefits for the duration of an injury or disability, while another state may cap the benefits to a specific period of time.
It is important to check with either your insurance agent, broker, or company to be sure. In addition, check with your state’s workers’ compensation commission or Department of Insurance to research what requirements your policy needs to meet.
Company for You
When choosing an insurance company for any type of policy, you will want to make sure that you choose the one that offers the coverage and features you need for a price you can afford. Here are some steps that you can take to choose the best workers’ compensation insurance company for you:
- Research which companies offer workers’ compensation policies in your state. Just because an insurer operates in all 50 states and Washington, D.C. doesn’t necessarily mean that it offers a workers’ compensation policy for businesses in your area.
- Research which companies offer other types of business insurance that you may need. Having all your business insurance policies with one insurer can make things easier for your company. Instead of working with several different agents or companies, everything is in one place.
- Get multiple quotes. Once you know which companies offer the policies you need, you can go about getting quotes from those companies. Many companies have the option of getting online quotes if you’re not quite ready to talk to an agent.
- Talk to a trusted agent or broker. An insurance agent or broker with experience in your industry and area will be able to help you narrow things down and identify potential coverage gaps.
You may also want to look at a company’s financial strength. A credit rating agency like AM Best provides financial strength ratings for insurance companies. These ratings can be a helpful way to gauge a company’s ability to make good on its financial obligations, like your workers’ compensation policy.
During your initial research or when talking to your broker or agent, you may also want to ask about an insurer’s customer service and availability.
Who is covered by a workers’ compensation insurance policy?
Who is covered by a workers’ compensation insurance policy is regulated at the state level. In some states, an independent contractor or part-time employee may not be covered by a workers’ compensation policy. However, that doesn’t mean you can’t add an endorsement to a workers’ comp policy to cover people like volunteers who are not typically covered. Also, employees who are injured while working out of state may not be covered by some policies.
What is a workers’ compensation insurance audit?
A workers’ compensation audit is when an insurance company reviews your company’s payroll. The insurer will do this because the premiums for a workers’ comp policy are in part based on the size of your payroll, and it will want to ensure that you are paying the appropriate amount for your coverage.
What is a workers’ compensation state insurance fund?
A workers’ compensation state insurance fund is a state-run fund that provides workers’ compensation coverage for businesses. This can either be in lieu of private insurers or in addition to them.
What are the types of workers’ compensation state insurance funds?
There are a couple of different types of state workers’ compensation funds.
- Monopolistic: This type of workers’ compensation fund is the only source of workers’ compensation coverage in the state. States that have a monopolistic fund include North Dakota, Ohio, Washington, and Wyoming.
- Competitive: States with a competitive workers’ compensation fund allow companies to choose workers’ comp policies from either private insurance carriers, or from the state-run fund. A few examples of states with competitive funds include Arizona, California, Maryland, Pennsylvania, and Texas.
Other Insurance Ratings from 360 Reviews
Other Business Services Ratings from 360 Reviews
Why You Can Trust Us: 34 Small Business Insurance Companies Researched
At U.S. News & World Report, we rank the Best Hospitals, Best Colleges, and Best Cars to guide readers through some of life’s most complicated decisions. Our 360 Reviews team draws on this same unbiased approach to rate the products that you use every day. To build our ratings, we researched more than 34 small business insurance companies and agencies and analyzed 10 third-party reviews. Our 360 Reviews team does not take samples, gifts, or loans of products or services we review. All sample products provided for review are donated after review. In addition, we maintain a separate business team that has no influence over our methodology or recommendations.
The following describes our 360 approach to researching home insurance to guide prospective consumers.
1. We researched the companies and products people care most about.
U.S. News analyzed and compared a variety of publicly available data, including internet search data, to determine which small business companies and agencies Americans are most interested in. We found 34 insurance companies and agencies that stand out in terms of volume of searches and research among consumers, as well as across the different rating sources. After conducting a thorough analysis, we were able to condense the initial list to the 10 overall Best Small Business Insurance Companies. With the companies determined, we conducted comprehensive research on their features to create a general layout of what consumers should know to assist with their purchasing decisions.
We then compared available plans provided by our top small business insurance companies and agencies across several criteria, including coverage limits, policy features, online accessibility, and availability. Research shows that these criteria are among the most important considerations to people shopping for small business insurance.
2. We created objective 360 Overall Ratings based on an analysis of third-party reviews.
U.S. News’ 360 Reviews team applied an unbiased methodology that includes opinions from professional reviews as well as consumer reviews.
Our scoring methodology is based on a composite analysis of the ratings and reviews published by credible third-party professional and consumer review sources. The ratings are not based on personal opinions or experiences of U.S. News. To calculate the ratings:
(a) We compiled two types of third-party ratings and reviews:
Professional Ratings and Reviews. Many independent small business insurance evaluating sources have published their assessments of small business insurance companies and agencies and their plans. We consider several of these third-party reviews to be reputable and well-researched. However, professional reviewers often make recommendations that contradict one another. Rather than relying on a single source, U.S. News believes consumers benefit most when these opinions and recommendations are considered and analyzed collectively with an objective, consensus-based methodology.
Consumer Ratings and Reviews. U.S. News also reviewed published consumer ratings and reviews of small business insurance companies and agencies. Sources with a sufficient number of quality consumer ratings and reviews were included in our scoring model.
Please note that not all professional and consumer rating sources met our criteria for objectivity. Therefore, some sources were excluded from our model.
(b) We standardized the inputs to create a common scale.
The third-party review source data were collected in a variety of forms, including ratings, recommendations, and accolades. Before including each third-party data point into our scoring equation, we had to standardize it so that it could be compared accurately with data points from other review sources. We used the scoring methodology described below to convert these systems to a comparable scale.
The 360 scoring process first converted each third-party rating into a common 0 to 5 scale. To balance the distribution of scores within each source’s scale, we used a standard deviation (or Z-Score) calculation to determine how each company’s score compared to the source’s mean score. We then used the Z-Score to create a standardized U.S. News score using the method outlined below:
Calculating the Z-Score. The Z-Score represents a data point’s relation to the mean measurement of the data set. The Z-Score is negative when the data point is below the mean and positive when it’s above the mean; a Z-Score of 0 means it’s equal to the mean. To determine the Z-Score for each third-party rating of a company, we calculated the mean of the ratings across all companies evaluated by that third-party source. We then subtracted the mean from the company’s rating and divided it by the standard deviation to produce the Z-Score.
Calculating the T-Score. We used a T-Score calculation to convert the Z-Score to a 0-100 scale by multiplying the Z-Score by 10. To ensure that the mean was equal across all data points, we added our desired scoring mean (between 0 and 10) to the T-Score to create an adjusted T-Score.
Calculating the common-scale rating. We divided the adjusted T-Score, which is on a 100-point scale, by 20 to convert the third-party rating to a common 0-5 point system.
(c) We calculated the 360 Overall Score based on a weighted-average model.
We assigned “source weights” to each source used in the consensus scoring model based on our assessment of how much the source is trusted and recognized by consumers and how much its published review process indicates that it is both comprehensive and editorially independent. The source weights are assigned on a 1-5 scale. Any source with an assigned weight less than one was excluded from the consensus scoring model.
Finally, we combined the converted third-party data points using a weighted average formula based on source weight. This formula calculated the consensus score for each product, which we call the 360 Overall Rating.
U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.
