Cheap Business Insurance in 2025 (Save With These 10 Companies!)
USAA, Progressive, and Nationwide lead as the top providers of cheap business insurance, starting as low as $22 monthly. Each company stands out by offering exceptional value and tailored policies to meet diverse business needs, ensuring comprehensive coverage at competitive rates.
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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: Dec 22, 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: Dec 22, 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
Min. Coverage for Cheap Business Insurance
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Pros & Cons
13,128 reviews
3,019 reviewsCompany Facts
Min. Coverage for Cheap Business Insurance
A.M. Best Rating
Complaint Level
Pros & Cons
3,019 reviews
The top picks for cheap business insurance are USAA, Progressive, and Nationwide, each known for their affordable rates and robust coverage options.
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 Company Picks: Cheap Business Insurance
Company Rank Monthly Rates Business Size Discount Best For Jump to Pros/Cons
#1 $22 15% Military Savings USAA
#2 $39 20% Policy Options Progressive
#3 $44 12% Customizable Policies Nationwide
#4 $48 18% Many Discounts State Farm
#5 $51 22% Accident Forgiveness Travelers
#6 $53 16% Deductible Reduction The Hartford
#7 $57 21% Local Agents Farmers
#8 $61 17% Add-on Coverages Allstate
#9 $68 19% Financial Stability Liberty Mutual
#10 $89 14% Bundling Policies CNA
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.
- USAA leads with the best rates for cheap business insurance
- Tailored policies address unique business risks effectively
- Cost-effective solutions provide essential financial protection
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#1 – USAA: Top Overall Pick
Pros
- Exceptional Customer Service: USAA consistently receives high marks for its customer service and support.
- Low Rates for Members: Offers some of the lowest insurance rates for its members, especially beneficial for military families. Check out insurance savings in our complete USAA auto insurance review.
- Quick Claims Processing: Known for efficient and fast claims processing.
Cons
- Limited Eligibility: USAA services are only available to military members, veterans, and their families.
- Fewer In-Person Services: Limited physical locations, which might be a drawback for those preferring in-person service.
#2 – Progressive: Best for Policy Options
Pros
- Extensive Policy Options: Progressive excels in offering a wide range of customizable policies.
- Loyalty Rewards: Progressive rewards long-term customers with loyalty discounts. See more details on our Progressive auto insurance review.
- Competitive Rates for New Businesses: Offers competitive rates, especially attractive for new and small businesses.
Cons
- Variable Customer Service: Customer service quality can vary significantly depending on the region.
- Complex Claims Process: Some users report that the claims process can be complex and time-consuming.
#3 – Nationwide: Best for Customizable Policies
Pros
- Highly Customizable Policies: Nationwide is known for its highly customizable policy options that suit various business needs. More information is available about this provider in our “Nationwide General Insurance Company: Customer Ratings & Reviews.”
- Strong Online Resources: Provides robust online tools and resources for business insurance management.
- Good for Larger Businesses: Especially advantageous for larger businesses seeking comprehensive coverage.
Cons
- Higher Rates for Small Businesses: Smaller businesses might find Nationwide’s rates less competitive.
- Less Competitive Renewal Rates: Renewal rates can be higher, potentially leading to increased costs over time.
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#4 – State Farm: Best for Many Discounts
Pros
- Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
- High Low-Mileage Discount: State Farm provides a substantial discount for low-mileage usage.
- Wide Coverage: State Farm offers various coverage options tailored to different business needs. Learn more in our State Farm general insurance company review.
Cons
- Limited Multi-Policy Discount: The multi-policy discount of State Farm is not as high compared to some competitors.
- Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.
#5 – Farmers: Best for Diverse Coverage
Pros
- Extensive Coverage Options: Farmers offers a wide variety of coverage options that cater to different business sectors.
- Dedicated Agents: Personalized service through dedicated agents who understand your unique business needs.
- High Discount Rates: Offers the highest discount rates for businesses, enhancing affordability. Discover more about offerings in our Farmers auto insurance review.
Cons
- Higher Premiums: Premiums can be on the higher side, especially without discounts.
- Complex Policy Management: Managing policies can be complex due to the range of options and terms.
#6 – Allstate: Best for Bundle Discounts
Pros
- Strong Bundle Discounts: Allstate provides substantial discounts for customers who bundle multiple types of insurance.
- Personalized Agent Network: Offers personalized service through a vast agent network. Access comprehensive insights into our Allstate insurance company review.
- Risk Management Tools: Provides effective tools and resources for risk management and reduction.
Cons
- Higher Rates without Bundling: Rates can be higher for customers not taking advantage of bundling.
- Inconsistent Customer Experiences: Customer experiences can vary widely based on the agent and region.
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#7 – Travelers: Best for Industry-Specific Coverage
Pros
- Specialized Industry Coverage: Travelers offers tailored insurance solutions for specific industries, providing precise coverage for unique risks.
- Competitive Pricing for Custom Policies: Offers competitive pricing for policies that are tailored to industry-specific needs. Delve into our evaluation of Travelers auto insurance review.
- Robust Risk Assessment Tools: Provides comprehensive tools for assessing and managing industry-specific risks.
Cons
- Complexity in Customization: Customization options, while comprehensive, can be complex to navigate.
- Premium Cost with Custom Policies: Customized policies can be expensive, depending on the coverage extent and risk level.
#8 – The Hartford: Best for Tailored Coverage
Pros
- Specialized Tailored Policies: The Hartford stands out for offering tailored policies that meet specific business needs.
- Strong Reputation in Business Insurance: Has a long-standing reputation for reliability in the business insurance market. Unlock details in our “The Hartford Insurance Company of the Midwest Review.”
- Supportive Risk Management Services: Provides excellent support and services for risk management.
Cons
- Can Be Costly for Small Businesses: Smaller businesses may find Hartford’s tailored solutions costly.
- Limited Discounts Available: Fewer discount options compared to other insurers.
#9 – Liberty Mutual: Best for Financial Stability
Pros
- High Financial Stability: Liberty Mutual is known for its solid financial stability, ensuring reliability.
- Wide Range of Coverage Options: Offers a broad spectrum of coverage options suitable for various business sizes and types. Discover insights in our Liberty Mutual homeowners insurance review.
- Global Reach: Ideal for businesses with international needs due to its global presence.
Cons
- Higher Premiums for Comprehensive Coverage: Premiums can be higher for more comprehensive coverage plans.
- Slower Claim Processing Times: Some customers experience slower claims processing compared to competitors.
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#10 – CNA: Best for Bundling Policies
Pros
- Excellent for Policy Bundling: CNA offers great benefits for businesses looking to bundle various insurance policies.
- Tailored for Larger Corporations: Well-suited for larger corporations that need extensive coverage.
- Comprehensive Coverage Options: Provides a wide range of comprehensive coverage options. Learn more in our “What is the difference between comprehensive and collision auto insurance coverage?“
Cons
- Not as Competitive for Small Businesses: Not the most cost-effective option for small businesses.
- Complex Policy Structures: The extensive coverage options can lead to complex policy structures that might be challenging to manage.
Comparative Monthly Rates for Cheap Business Insurance Coverage Levels
Business insurance rates can vary significantly based on the level of coverage chosen. This detailed breakdown provides insight into the monthly rates for both minimum and full coverage options across various insurance companies.
Business Insurance Monthly Rates by Coverage Level & Provider
Insurance Company Minimum Coverage Full Coverage
Allstate $61 $189
CNA $89 $215
Farmers $57 $185
Liberty Mutual $68 $205
Nationwide $44 $158
Progressive $39 $155
State Farm $48 $140
The Hartford $53 $199
Travelers $51 $195
USAA $22 $162
Allstate offers minimum coverage at $61 and full coverage at $189, while CNA’s rates start at $89 for minimum and rise to $215 for full coverage, marking the highest full coverage cost in the list. Farmers provide a more moderate range, with minimum coverage at $53 and full at $185.
Liberty Mutual and The Hartford offer similar structures, costing $68 and $43 for minimum, and $205 and $199 for full coverage, respectively. Progressive and State Farm present the most affordable options, with Progressive charging $39 for minimum and $155 for full, and State Farm at $33 and $140.
Travelers and USAA also offer competitive rates, with Travelers at $38 and $195, and USAA at $22 and $162 for minimum and full coverage, respectively. Nationwide rounds out the list with $44 for minimum and $158 for full coverage, highlighting a range of options tailored to different business insurance needs and budgets.
Read more: Compare Insurance Provider Quotes
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. See more details on our “How to Choose a Business Insurance Provider.”
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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.
USAA emerges as a top choice for cheap business insurance, offering diverse policy options and exceptional customer service.Ty Stewart Licensed Life Insurance Agent
Some insurance companies also sell other types of insurance, such as home or auto insurance. At these companies, you can also 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.
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.
Choosing USAA means investing in reliability and extensive support for diverse business needs.Jimmy McMillan Licensed Insurance Agent
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 a 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.
Our free quote tool below makes it easy to compare affordable coverage options for your business — simply enter your ZIP code to find the best commercial insurance company for you.
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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.
For additional details, explore our comprehensive resource titled “Top Commercial Auto Insurance Coverage: What You Need to Know.”
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.
What does affordable business insurance coverage typically include?
Affordable business insurance coverage generally includes basic protection against common risks such as property damage, liability, and business interruption, tailored to fit budget constraints without sacrificing essential protections.
To find out more, explore our guide titled “Top Liability Insurance Coverage: What You Need to Know.”
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.
How can I find affordable business insurance plans?
To find affordable business insurance plans, compare quotes from multiple providers, look for discounts such as bundling, and choose a plan that balances cost with the coverage needed for your business’s specific risks.
Enter your ZIP code into our quote comparison tool below to secure cheaper insurance rates for your business.
What options are available for affordable mid-size business insurance?
Affordable mid-size business insurance often offers flexibility in coverage options, including property, liability, workers’ compensation, and business interruption, tailored to meet the needs of mid-sized companies at competitive rates.
What insurance types are most profitable?
You’ve found that selling life insurance can result in substantial commissions and increased income. Additionally, final expense insurance is among the most lucrative types to sell, offering significant profits due to the growing number of elderly individuals. Therefore, you should think of this niche market as a potential goldmine.
Where can I get cheap office insurance for my business?
Cheap office insurance can be obtained by comparing quotes from various insurers, checking for discounts like multi-policy bundles, and customizing your coverage to exclude unnecessary options, focusing on essential risks like property damage and liability.
How can insurance help small businesses?
Insurance serves as a safeguard that can shield your small business from unforeseen events. Incidents, legal actions, and disasters can occur at any time, and having sufficient insurance can prevent devastating financial setbacks by handling expenses related to repairs, legal costs, and other charges.
What are insurance companies in the business of?
The insurance industry provides financial security to both individuals and businesses by offering a range of insurance products. These companies assess risks, collect premiums, and create policies that outline the specifics of the coverage provided.
To learn more, explore our comprehensive resource on “Insurance Providers Directory.”
What is the value of new business insurance?
The worth of a new business reflects the influence of policies acquired in the period on the embedded value. This is computed under the same conditions used for the embedded value and is factored into the present value of future profits of the embedded value.
What is a premium in business?
Generally, a premium refers to the amount paid in excess of the fundamental or inherent value. Additionally, it represents the cost paid to safeguard against potential losses, risks, or damages, such as in insurance or options contracts.
What is a good insurance rating?
AM Best is widely recognized as the premier rating agency for the insurance sector, with its ratings serving as the benchmark for assessing financial strength within the industry. The top rating it awards is A++ (Superior), and the lowest is D (Poor).
Find the cheap business insurance company near you by entering your ZIP code into our free quote tool below.
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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.