As a small business owner, securing the right business insurance is one of the smartest decisions you can make to protect your assets, employees, and financial stability. Whether you run a brick-and-mortar store or an online startup, the right business insurance policy ensures that you’re covered against liability claims, property damage, and unexpected losses.
But with so many business insurance companies in the market, how do you choose the best one for your specific small business insurance needs? This guide breaks down the best small business insurance providers in 2025, their offerings, and pricing, helping you make an informed decision.
Why Business Insurance Matters in 2025
In 2025, the rise of digital operations, gig work, and remote business models has reshaped the way we view business insurance. Even small disruptions — cyber attacks, lawsuits, natural disasters — can cause serious financial strain.
The right small business insurance plan can cover:
- General liability
- Professional liability
- Property insurance
- Workers’ compensation
- Business interruption
- Cyber liability
Let’s explore how to choose the right policy and which providers offer the best value.
Top Business Insurance Companies in 2025
Below are some of the top-rated business insurance companies catering to small businesses:
1. Simply Business Insurance
Simply Business Insurance is known for its flexible, affordable coverage designed specifically for small businesses. With a fast online quote system and access to top insurers, it’s ideal for entrepreneurs looking for cheap business insurance without sacrificing quality.
- Pros: Easy quote comparison, wide coverage options, tailored for SMBs
- Cons: Limited local agent support
2. Hiscox
Hiscox has a long-standing reputation for small business insurance, especially for freelancers, consultants, and online businesses.
- Pros: Specialized in small businesses, strong digital tools
- Cons: Not ideal for high-risk industries
3. NEXT Insurance
NEXT offers affordable and streamlined policies fully online, targeting micro and small businesses. Ideal for trades, cleaning services, fitness trainers, and more.
- Pros: Budget-friendly, digital-first, same-day proof of insurance
- Cons: Limited coverage for larger operations
4. The Hartford
With over 200 years of experience, The Hartford offers customizable business insurance policies that cater to both startups and growing enterprises.
- Pros: Broad industry coverage, strong customer support
- Cons: Slightly higher premium for comprehensive coverage
5. Progressive Commercial
Progressive is well-known for auto coverage, but its business insurance branch provides bundled packages ideal for companies with vehicles and employees.
- Pros: Bundling options, discounts available
- Cons: Some plans are underwritten by third parties
Business Insurance Cost Comparison in 2025
So, how much is business insurance in 2025? Here’s a comparison table for small business insurance plans from the top providers:
| Insurance Company | Monthly Cost (Starting) | Coverage Includes | Best For |
|---|---|---|---|
| Simply Business | $25/month | General liability, professional liability, BOP | Budget-conscious entrepreneurs |
| Hiscox | $30/month | General liability, errors & omissions, cyber | Freelancers & online businesses |
| NEXT Insurance | $20/month | Liability, commercial auto, workers’ comp | Sole proprietors & tradespeople |
| The Hartford | $40/month | Liability, property, workers’ comp, umbrella | Mid-sized businesses |
| Progressive Commercial | $35/month | Liability, commercial auto, employee coverage | Businesses with fleets or trucks |
Note: Prices are estimates and vary by industry, location, and risk level.
How to Choose the Best Small Business Insurance
Here are some key steps to help determine your small business insurance needs:
- Assess Your Risks – Identify potential risks your business may face (e.g., customer injury, employee accidents, cyberattacks).
- Know Your Legal Requirements – Certain states or industries may require specific policies like workers’ compensation or commercial auto.
- Compare Quotes – Use services like Simply Business Insurance to compare policies and rates.
- Read the Fine Print – Always check exclusions, coverage limits, and deductibles.
Benefits of Cheap Business Insurance (Without the Risk)
Everyone wants cheap business insurance, but low price shouldn’t mean low protection. Here’s how to get affordable coverage without cutting corners:
- Choose a Business Owner’s Policy (BOP) that bundles general liability and property insurance.
- Pay annually instead of monthly for discounts.
- Increase your deductible slightly to lower your premium.
- Use a digital-first insurer like NEXT or Simply Business for better pricing.
Frequently Asked Questions (FAQs)
1. How much is business insurance for a small business in 2025?
The average small business insurance cost ranges from $20 to $60 per month, depending on the coverage type, industry, and location.
2. Do I need business insurance if I’m a sole proprietor?
Yes, even as a sole proprietor, you are liable for damages or legal claims. Small business insurance protects your personal assets.
3. What is the most important type of business insurance?
General liability insurance is essential for most small businesses as it covers common risks like customer injury or property damage.
4. Is Simply Business Insurance legit?
Yes, Simply Business Insurance is a licensed insurance broker in the U.S., working with top-rated carriers to provide competitive quotes.
5. Can I get business insurance online?
Absolutely. Providers like NEXT, Simply Business, and Hiscox offer fast online applications with instant coverage.
Final Thoughts
Choosing the best small business insurance in 2025 doesn’t have to be overwhelming. With digital-first platforms like Simply Business Insurance and NEXT, getting affordable and reliable coverage is easier than ever. Compare your options, evaluate your small business insurance needs, and secure your business future with confidence.
