How to Choose Between Small Business Insurance Carriers

As a small business owner, much of your day-to-day life is concerned with how your business can produce the best results. But how often do you consider what happens when things go wrong? Would your business be prepared in the event of a fire, an injury, or a lawsuit?

It’s the unexpected that makes small business insurance vital to your success, and if you’re looking to insure your small business, you know there’s a lot to think about. Here we’ll outline what you should consider when choosing between small business insurance carriers. 

Learn About Different Types of Coverage

Your business’ industry, how many employees you have, what assets you possess, and many more factors will influence the types of coverage you need and the insurance carrier you choose. At the end of the day, you don’t just need coverage; you need the right coverage. 

Some common considerations for small business insurance include:

  • General Liability Insurance: This coverage protects your business from claims relating to injuries or property damage. Business owners have a duty to take reasonable steps to protect against known hazards. (Hint: slips, trips, and falls are more common than you may think.)
  • Commercial Property Insurance: There’s no question it’s important to protect your business assets. Commercial property insurance can protect against fires, storm damage, vandalism and other unfortunate events that could potentially shutter your business.
  • Business Income Interruption Coverage: Can you afford the loss of income if electrical outages following a storm force your business to close for several days? Downtime can have a huge financial impact on a business. Business interruption coverage can provide protection for the loss of business income for covered causes of loss under the terms and conditions stated in the policy.
  • Workers Compensation Coverage: If an employee is injured on the job, you want to be able to make it right. Workers compensation coverage can cover an employee’s medical expenses, lost wages and provide other benefits. This coverage is important for both protecting your business, and creating an environment where employees know you value their health and wellbeing.

There are many other kinds of coverage you should consider, like hired and non-owned auto insurance, equipment breakdown coverage, cyber liability insurance and umbrella coverage just to name a few. Learning about various kinds of insurance can ensure your business is adequately covered. When you choose an insurance carrier to cover your small business, it’s essential that they offer the type of coverage your business needs.

Know What Coverage May Be Legally Required

Depending on your industry, there may be regulations or laws requiring you to have certain kinds of business insurance coverage. In addition, property management companies and clients may only work with you if you’re properly insured.

For example, almost every state requires workers compensation coverage, so if you are found to be operating without it, or end up needing it but don’t have it, you could find your business facing legal consequences.

Finding a small business insurance agent who can help you identify what types of coverage may be legally required will be important for your overall insurance experience.

Consider Your Industry’s Unique Risks

Each industry has unique risks, from kitchen-related injuries and foodborne illnesses in restaurants, to errors and omissions in automotive garages. While you undoubtedly do everything you can to reduce these risks, the fact remains every business is liable to risks and mistakes inevitably happen. 

What isn’t inevitable is how you prepare your small business. Understanding the unique risks of your industry provides insight to potential liabilities for your business, and the coverages that can protect it.

Finding a provider that understands and is prepared to cover your industry’s unique risks is essential when choosing an insurance carrier.

Compare Notes With Similar Businesses

Professionals from other businesses in your area or industry may be happy to tell you what they know from their personal experience. Getting this firsthand knowledge about instances when similar businesses were exposed, were grateful to have coverage, or didn’t realize they needed coverage can be illuminating as you pursue coverage for your own business.

Video: “Rebuilding Business After a Fire.”

These discussions can help you learn which small business insurance carriers have a good reputation, and which one might be less than reliable. You can also look for reviews and testimonials online.

Carefully Review Coverage

While assessing insurance quotes, it’s important to note the differences in coverage.  All small business insurance policies are not created equal. Do your due diligence and look for comprehensive coverage that specializes in the needs of your unique operation. Your trusted local agent can help.

To learn more about protecting your business with Society Insurance, contact your local agent today.


As a mutual insurance company, we operate and exist for the benefit of our policyholders. For more than 100 years, Society has been helping businesses overcome the unexpected with comprehensive coverage packages and outstanding claims handling, underwriting and risk management.

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