Best Startup Business Insurance

Simply Business earned our top spot for the best small business insurer for startup companies due to its affordability and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, Nationwide and biBerkK.

*All scores were based on a startup business with two employees across professional liability, general liability, workers' comp and BOP policies.

Based on our study of business insurance pricing, Simply Business offers the cheapest overall commercial insurance for startup companies for general liability and BOP coverage. However, this applies only to startup companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.

With an average monthly rate of $14, Simply Business offers the lowest-cost general liability insurance for startup companies. Even so, consider getting quotes from the next-most-affordable insurers: Nationwide and Hiscox.

For startup businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $6 per month or $67 yearly. However, you may find more affordable rates with Progressive Commercial, Simply Business, Hiscox and The Hartford.

The Hartford offers the most affordable professional liability insurance options for startup companies, with low average monthly rates of $64. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Hiscox.

Simply Business provides the most affordable business owner's policy (BOP) coverage for startup companies, with an average yearly cost of $257 for bundled general liability and property protection. That's a savings of roughly $106 annually compared to Nationwide, the second most affordable option.

Most startup companies need to carry workers' comp insurance if they have employees, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts require businesses to carry general liability insurance before starting work. A surety bond is also necessary in certain industries, especially when contracts require guarantees of service or compliance.

Startup service types are ranked by risk exposure, from highest to lowest.

Reducing risk helps minimize insurance costs and avoid claims.

Simply Business is the best insurer for startup business insurance, and it offers the cheapest option overall. We also recommend getting quotes from The Hartford and Nationwide.

The following section addresses frequently asked questions about insurance options for startup businesses.

Startups face unique insurance challenges from limited cash flow, evolving business models, and growth that changes your risk profile faster than established companies experience. We designed this research to identify which insurers offer the best combination of affordable coverage and flexible service for new businesses navigating uncertain first years.

We selected the best business insurer for startup companies using four weighted criteria: Affordability (50%) measures how competitive a company's costs are compared to competitors based on our base profile for four core coverage types. Customer Service (30%) scores providers on overall satisfaction using industry studies, customer review forum ratings, and public forum sentiment analysis from sites like Reddit. Coverage (15%) evaluates flexibility, payment options, and actual coverage breadth. Financial Stability (5%) uses AM Best and Moody's ratings to assess how likely a company is to pay claims.

All pricing is based on a three-person business with two employees, $1 million per occurrence and $2 million total per year for all coverage types except BOP, which includes the same limits plus $5,000 of business property coverage. This profile uses $150,000 in payroll and $300,000 annual revenue, representing the vast majority of small businesses across all states.

Why these weights matter for startups: Premium costs directly impact survival when you're operating on limited capital and uncertain revenue. Every dollar spent on insurance is a dollar not available for product development, marketing, or hiring. Customer service carries substantial weight because startups need insurers who understand evolving business models and adjust coverage as you pivot or scale. Coverage flexibility matters because your insurance needs change rapidly as you grow from a home office to commercial space or add employees and expand operations. Financial stability rounds out the evaluation, ensuring your insurer can pay claims when business interruption or liability issues threaten your startup's future.