business health insurance llc

5 best health insurance companies for small businesses

More and more people are deciding to become entrepreneurs. Approximately 19% of working-age adults in the U.S. were in the process of starting a business or running a business less than 42 months old, according to the 2023 Global Entrepreneurship Monitor report.

As your business grows and you bring on workers, you may need to provide benefits. Businesses with fewer than 50 employees aren’t required by law to provide health insurance benefits, but health insurance is a highly-desired benefit. To attract and maintain a talented workforce, providing benefits may be essential. 

We identified the leading providers based on their availability, plan options and customer satisfaction ratings (see our full methodology ): 

The 5 best small business health insurance providers for 2024

Best overall: blue cross blue shield, best for added benefits: kaiser permanente.

• Best for Micro businesses: UnitedHealthcare

Best for Small to Midsize Companies: Cigna

Best for comparison shopping: small business health options program (shop).

*Last updated March 12, 2024

If you’re shopping for coverage, finding the right provider can be daunting. To help you narrow down your options, we selected the five top providers of small business health insurance: 

About: Blue Cross Blue Shield (BCBS) is a corporation made up of 34 independent and locally-operated BCBS companies. Combined, BCBS provides coverage for 114 million people, or about one-third of Americans. 

BCBS is a leading provider for small business health insurance, giving coverage to employees of 6.9 million small business employers. 

• Minimum number of employees: Varies by state, but typically employers need at least one or two employees
• Availability: 50 states
• Customer support: Customer support is provided by the independent BCBS organization behind the health plan. For example, small businesses in Florida can get coverage through Florida Blue, and they’d contact Florida Blue directly for help with policies and payments. Customer support is reachable through online portals or phone. 

Our verdict

Blue Cross Blue Shield is one of the few providers that has insurance options in all 50 states, so it’s a good choice for businesses nationwide. Its independent BCBS companies typically have options for small to midsize companies. Whether you have one employee or 100, you can likely get coverage through BCBS, and you can choose a network plan that fits your budget and employee needs. 

About: Kaiser Permanente is one of the nation’s largest providers of not-for-profit health plans, serving 12.5 million members. Kaiser isn’t available everywhere; its plans are only available in California, Colorado, Georgia, Hawaii, Oregon, Virginia, Washington, and the District of Columbia. 

In states where Kaiser is available, it’s a top-ranked insurer for customer satisfaction. J.D. Power selected Kaiser as the top provider in several states, and its plans are highly rated by the National Committee for Quality Assurance. 

• Minimum number of employees: As little as one
• Availability: 8 states and the District of Columbia
• Customer support: Customer service is provided through the Kaiser subsidiary serving your location, but you can typically get help through the online portal or by phone. 

Our verdict 

If you live in one of the states where Kaiser Permanente operates, it can be a good choice for employers looking to offer robust coverage to their employees as a recruitment or retention tool. With its plans, you can give your employees the convenience of telehealth visits and supplemental benefits, including acupuncture, chiropractic care, and dental and vision coverage. 

Best for Micro Businesses: UnitedHealthcare

About: UnitedHealthcare is a major health insurance provider that insures 27.3 million people. It has plan options in all 50 states, including plans for small business owners and individuals. Its small business plans allow employers to give employees multiple options, and it has robust educational tools online you can use to learn more about insurance coverage for small businesses. 

• Minimum number of employees: As little as two
• Customer support: With UnitedHealthcare, there is a small business online portal you can use to get quotes and view plan options. If you proceed with purchasing coverage for your employees, you’ll be connected to a dedicated service representative, and you can get assistance by phone or email. 

UnitedHealthcare is best for micro business owners, or those who own a business with fewer than 10 employees. Its small business store is available to small business owners with two to 50 employees, and you can use the tool to get quotes and see what deductible, copay and premium amounts are common in your area. If you find coverage that suits your needs, you can purchase coverage directly through the store. 

About: Cigna is a global health services company with health insurance options for small to mid-sized businesses throughout the country. Its plans include medical, pharmacy and behavioral health benefits, with multiple plan tiers. 

• Customer support: Cigna has an online portal for employers, but you must contact a Cigna Healthcare representative via phone to get details on pricing and plans in your area. 

If you have a growing business, Cigna could be a useful option. Whereas some providers only offer coverage for employers with fewer than 50 employees, Cigna has options for small to midsize businesses, allowing you to get coverage for up to 499 employees. Its plans include benefits like virtual care and it offers multiple plan tiers, including high-deductible health plans. 

About: SHOP is a program that helps small business owners provide health and dental coverage to their employees. It’s available to businesses with between one and 50 full-time employees, and it gives you more control; you can decide to offer your employees one plan, or you can give them a choice of several options. 

• Customer support: You can compare prices and plan online, or you can contact a SHOP broker for personalized assistance. 

SHOP is a marketplace that was created through the Affordable Care Act (ACA). Through SHOP, employers can compare plans and prices from leading providers in their area. With SHOP, you can control how much you pay toward employee premiums, and you may be eligible for valuable tax credits that are only available to employers who enroll in SHOP plans. 

What to know about health insurance for small businesses

If you are a business owner with 50 or more employees, the law requires you to offer coverage to your employees. 

By contrast, those with fewer than 50 employees aren’t required to provide health insurance. But even if you aren’t legally obligated to provide coverage, it can be a smart idea as a recruitment and retention tool. In fact, studies, including one conducted by Avalere Health and funded by the U.S. Chamber of Commerce, have shown that offering health insurance benefits produces a strong return on investment and increased productivity.  

You may also qualify for valuable tax credits if you offer health insurance benefits. The Small Business Health Care Tax Credit is worth up to 50% of the costs of your employees’ premiums. To qualify for the tax credit, your business must meet the following criteria: 

• You have fewer than 25 full-time employees
• The average annual salary of your workers is about $56,000 or less
• You cover at least 50% of your employees’ premiums 
• You offer coverage through SHOP to all of your full-time employees 

How to choose a small business health insurance company

When shopping for a small business health insurance provider, consider the following variables: 

Employee size: Each provider has its own employee requirements. In general, you’ll need between one and 50 employees to qualify for small business health insurance. 

Availability: While some providers offer coverage nationwide, others are more limited in scope, only issuing policies in certain states. Similarly, some plans allow workers to receive care in any state, but some plans have more restrictive local networks. 

Customer support tools: Most insurance providers require you to work with an agent or broker to get details about cost and plan options. But some companies have online tools and platforms that allow you to get quotes and view your options on your own.

Networks: Insurance providers offer plans with different network types. Depending on the provider, you may be able to provide your workers with the following options:

• Exclusive Provider Organization (EPO): EPOs are managed care plans that only cover services if you visit healthcare providers and hospitals within the network. 
• Health Maintenance Organization (HMO): With an HMO, you’re limited to care within the network, and you must get a referral to visit a specialist. HMOs tend to be the lowest-cost option. 
• Point of Service (POS): POS plans are less expensive if you use in-network providers, but you need a referral to visit a specialist. 
• Preferred Provider Organization (PPO): PPOs are often more expensive, but they give covered persons more flexibility. In-network providers are less expensive, but you can visit out-of-network providers, and you can see a specialist without a referral. 

There’s a lot to consider when it comes to business insurance, not just health insurance for your business. Our comprehensive guide breaks down the types of insurance options — from BOP’s to general liability and others — to help you understand which policy watches your needs. We have also compiled the best insurance companies for small businesses . If you operate a jewelry retail business, you may want to consider Jewelers Mutual’s business insurance specifically designed for jewelers.

Frequently asked questions

How much does health insurance cost a small business for each of their employees.

The cost of health insurance for small business employees will vary based on a number of factors including types of plans, risk to injuries, and region in the country. According to a 2023 KFF report , the average costs per employee per month is $690.

Do I have to provide health insurance to my employees? 

You only have to provide health insurance to your employees if you have 50 or more full-time workers. Those with fewer than 50 employees aren’t legally required to offer coverage, but you may be eligible for valuable tax benefits if you do. 

What are the penalties for not offering health benefits? 

Employers with 50 employees or more that don’t offer coverage that meets minimum value and affordability standards may incur penalties. Depending on what coverage you offer, the penalty ranges from $247.50 to $371.67 per month, per full-time employee. 

What do entrepreneurs do for health insurance? 

If you don’t have any employees, you won’t qualify for group plans from small business insurance providers. However, you may be eligible for an individual health insurance plan through Healthcare.gov or your state health insurance marketplace. 

Our methodology  

We evaluated seven leading providers and marketplaces of small business health insurance. To make our selections, we evaluated each company on the following criteria: 

• Availability: Preference was given to companies operating in the majority of states. 
• Employee minimums: We looked for companies with low employee minimums, offering coverage to businesses with just one or two employees. 
• Product options: We focused on companies with multiple insurance plans, including multiple network options and tiers of coverage. 
• Customer satisfaction: Priority was given to companies with high ratings from the National Committee for Quality Assurance Ratings.

EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.

Guide to small business insurance

The 10 best insurance companies for small businesses, 5 best small business insurance companies in california of 2024, 5 best small business insurance companies in new jersey of 2024, 5 best small business insurance companies in texas of 2024, 5 best small business insurance companies in florida of 2024, 5 best small business insurance companies in new york of 2024, a comprehensive guide to small business insurance: here's how to safeguard your company, general liability vs. professional liability insurance: which one does your business need, everything you need to know about workers’ compensation: how it works, how much it costs, and who pays for it, what is bond insurance, and how can it protect your business.

• Search Search Please fill out this field.

Are Small Businesses Required to Offer Health Insurance?

How small business health insurance works, benefits of offering health insurance as a small business, types of health insurance for small businesses, finding affordable small business health insurance, choosing the right health insurance plan for your small business, resources and support for small businesses, which businesses are eligible for the small business health options program (shop), how can small businesses find the right health insurance plan, how much does health insurance cost on average for a small business per employee, the bottom line.

• Small Business

Healthcare Options for Small Businesses: A Comprehensive Guide

Offering health insurance as a small business owner can yield tangible and intangible benefits. A good healthcare plan can be a strong incentive when attempting to attract top talent to your business. Employees may feel a deeper sense of job satisfaction in knowing they have healthcare benefits if they need to use them. Employers can also benefit in the form of tax breaks.

The challenge is finding the right healthcare option to offer to your employees.

Key Takeaways

• Small businesses face challenges in providing good, affordable healthcare coverage to their employees.
• The Small Business Health Options Program (SHOP) helps small businesses provide health coverage and offers benefits such as plan comparisons.
• Small businesses should consider factors like cost, coverage options, and employee needs when selecting a health insurance plan.
• Employer-sponsored insurance plans cater to the needs of small businesses and offer various benefits and considerations.
• Offering healthcare benefits can help you attract and retain talented employees, improve their satisfaction and productivity, and contribute to your business success.

Under provisions of the Employer Mandate of the Affordable Care Act (ACA) , businesses are required to offer health insurance only if they have 50 or more full-time employees or full-time equivalent (FTE) employees. If you meet that standard, you’re considered a large employer for Internal Revenue Service (IRS) purposes.

• A full-time employee is someone who averages at least 30 hours of service per week during the calendar month, or at least 130 hours during the calendar month.
• Full-time equivalent employees refer to a group of workers who may not all be employed full-time, but whose working hours combined are equivalent to a full-time employee.

Special rules for determining full-time employee status apply to businesses that hire seasonal workers.  

Independent contractors are not considered employees, so the ACA rules for health insurance don’t apply to them. A sole proprietor running a small business may be subject to the rules, but only if they meet the 50 or more full-time employees or FTE guidelines. Self-employed business owners with no employees can enroll in healthcare plans through the federal marketplace if they need coverage for themselves or their family members.  

Small businesses that are required to offer health insurance, or that voluntarily choose to do so, are obligated to offer coverage to 95% of full-time employees and their eligible family members. Again, a full-time employee is defined by thresholds of 30 hours per week or 130 hours per month. Businesses would need to have at least one eligible full-time employee to offer coverage.

Coverage must meet two standards to be aligned with ACA requirements:

• Minimum value . An employer-sponsored plan is determined to offer minimum value if it covers at least 60% of the total allowed cost of care for covered employees, and if its benefits include substantial coverage of physician and inpatient hospital services.
• Affordability . For 2024, workplace health insurance is deemed affordable if employees’ share of monthly premiums in the lowest-cost plan offered is less than 8.39% of household income .

Affordability is based on the premium that would cover all individuals in the employee’s household. Income is calculated based on the earnings of everyone in the household who is required to file a tax return. To qualify for a federal tax credit, employers must pay at least 50% of health insurance premiums for covered employees. Employers can, however, opt to pay a larger share of the premiums so that employees have less to pay out of pocket.

Businesses are required to offer health insurance to employees when they become eligible for it. Employers can impose a waiting period before employees are eligible. The maximum allowed waiting period is 90 days.

Employees can make changes to their plan if they qualify for a special enrollment period , which is triggered by a life change. For example, a covered employee who has a child would qualify for a special enrollment period to add a new baby to their plan. Employers must provide a special enrollment period of at least 30 days to employees who are eligible to change their plans.

Offering health insurance to your employees, whether you’re obligated to do so by ACA rules or not, can help your business and your workers in many ways. Here are some of the main advantages of including health insurance as part of an employee benefits package.

• Attract top talent . Job seekers may be more inclined to pursue career opportunities with businesses that offer attractive benefits, including health insurance.
• Increase retention . A good health insurance plan may be an incentive for employees to remain loyal to your business, rather than moving on to another company.
• Qualify for tax breaks . Eligible businesses can qualify for the small business healthcare tax credit , which is worth up to 50% of employer-paid premiums. Tax credits reduce your tax liability dollar-for-dollar.
• Strengthen your business . Offering health insurance to employees could lead to a stronger business overall if workers experience greater job satisfaction, miss fewer days of work because they’re able to get adequate healthcare when they need it, and are more productive while on the job.

Eligible small businesses will need to file IRS Form 8941 , Credit for Small Employer Health Insurance Premiums, to qualify for this tax benefit.

Small business owners may choose from multiple types of health insurance plans. Understanding how they compare is important when choosing a plan.

• PPO plans : Preferred provider organization (PPO) plans allow covered individuals to pay less out of pocket for care when they use in-network doctors, hospitals, and providers. Employees would still be able to seek care out of the network, but will pay more for it.
• HMO plans : Health maintenance organization (HMO) plans can have lower out-of-pocket costs for covered employees, but are more restrictive regarding which doctors, hospitals, and providers you can visit. HMO plans are often focused on wellness and preventative care.
• EPO plans : Exclusive provider organization (EPO) plans only cover healthcare costs when an employee uses an in-network provider. These plans can allow exceptions for emergencies.
• HSA-qualified plans : HSA-qualified plans or high-deductible health plans carry higher deductibles, but offer employees access to a Health Savings Account (HSA) . An HSA offers triple tax benefits to employees in the form of deductible contributions, tax-deferred growth, and tax-free withdrawals when the money is used for eligible healthcare expenses.
• POS plans : Point of service (POS) plans have lower out-of-pocket costs when employees use in-network providers. One key thing to note: These plans require a referral to see a specialist.
• Indemnity plans : Indemnity plans allow covered employees to visit any doctor, hospital, or healthcare provider, with costs covered by the plan once they meet a certain deductible. These are sometimes called fee-for-service plans since they require employees to pay premiums, deductibles , and co-insurance .

Affordability is likely to be a key concern when choosing a health insurance plan for your employees. The plan needs to be affordable for them to meet ACA standards, but it also needs to be affordable for your business if you’ll be paying some of the premium costs.

Here are some tips for finding affordable small business health insurance.

Use the Small Business Health Options Program (SHOP)

The Small Business Health Options Program (SHOP) is designed for small employers who want to provide health and/or dental insurance to their employees. You’ll need to be eligible for SHOP to purchase insurance through the program. You’re eligible if:

• Your business has one to 50 full-time equivalent employees.
• You plan to offer coverage to all full-time employees.
• You anticipate enrolling at least 70% of the employees to whom you offer insurance.
• Your business has an office or employee work site in the state whose SHOP you plan to use.

There are certain benefits associated with using SHOP to find health plans. Business owners can:

• Easily compare pricing and coverage for multiple plans in one place
• Opt to offer more than one plan to employees
• Choose how much to pay toward premiums
• Establish an appropriate waiting period for offering coverage to eligible employees

All of the information you need is centralized, but if you need help making sense of any of it, you can work with a SHOP-registered insurance agent or broker.

Use a PEO Service

A PEO, or professional employer organization, helps small businesses get the insurance they need. Effectively, when you join a PEO, you enter into a co-employment agreement. All of your employees then get access to the health plan options extended to other businesses that have joined the PEO.

You don’t give up any control over the running of your business, but joining a PEO makes that company the employer of record for your employees. Joining a PEO could offer your employees a wider range of plans to choose from, and it can take the guesswork out of trying to choose a plan on your own.

Partner with Purchasing Alliances

Purchasing alliances or cooperatives comprise multiple businesses that come together to purchase insurance collectively. Joining an alliance not only may offer more possibilities in terms of the types of coverage and plans you’ll have access to, but also could save money if you’re able to get access to affordable health insurance that isn’t available elsewhere.

One of the most important things to consider about joining a purchasing alliance is the types of businesses it serves. The more similar that member businesses are in terms of structure and number of employees, the more likely that the plans offered will reflect the needs of the member group as a whole.

Finding the right health insurance plan can be challenging, as there are a multitude of factors to consider, the first being where to buy coverage. Small businesses with fewer than 50 employees can look for options through SHOP or get help from a SHOP-registered broker or agent. Larger businesses can shop for plans with the help of an agent or PEO, or contact insurance companies directly.

When comparing small business health insurance plans, it’s important to consider:

• Premium costs
• Coverage options
• Network providers
• Employee needs

Business owners who are looking for plans through SHOP can easily compare coverage and prices for plans available in their area. All you’ll need to do is enter your ZIP code to see what options you might have.

As you look at SHOP plans, here are some other considerations to keep in mind:

• Will you offer one plan or a choice of plans?
• Will coverage be limited to medical only, or will you add dental coverage?
• How much of employee premiums do you plan to pay?
• Will you offer coverage to full-time employees only or include part-time workers?
• When will the coverage begin?
• What waiting period will you impose before employees can become eligible for coverage?

There are four types of plans offered through SHOP: bronze, silver, gold, and platinum. The amount employees pay depends on the plan, with the highest employee contribution at the bronze level and the lowest at the platinum level. Once you choose a plan and are ready to enroll, you can do so through a registered SHOP agent or broker, or the insurance company.

Some states have their own websites for SHOP enrollment, which you’ll need to use to choose a plan.  

Navigating healthcare rules and coverage options can be confusing for new and seasoned business owners alike. If you’re interested in getting more information about what’s required under the ACA or how to find health coverage as a small business owner, you might find these resources helpful:

• Health insurance for your business and employees (HealthCare.gov)
• How to enroll in SHOP insurance (HealthCare.gov)
• Small Business Healthcare Tax Credit and the SHOP Marketplace (IRS.gov)
• Employer Shared Responsibility Provisions (IRS.gov)
• Small Business—Get Answers Page (HealthCare.gov)

Small businesses are eligible for SHOP insurance plans if they have one to 50 employees. If you’re eligible, you don’t need to wait for an open enrollment period to start offering coverage to your employees.

Small business owners can find the best health plan by first understanding what they and their employees may need. Businesses that are SHOP-eligible may look to the federal marketplace first to compare plans. Alternatively, businesses of any size may consult a private insurance agent or broker to help them make sense of the different health plan options that are available.

On average, the annual premium for single coverage for covered employees at small firms was $8,722 in 2023. The average premium cost was slightly lower for covered employees at large firms: $8,321. The average premium was $23,621 for family coverage at small firms and $24,104 for covered employees at large firms.

Health insurance is a requirement for some small business owners, but it may be optional for others. Offering health insurance, whether you’re required to do so or choose to, could help your employees and your business thrive.

When searching for coverage, it’s important to shop around to find the best health plan options for small businesses so that you can make an informed decision for your business.

Internal Revenue Service. “ Affordable Care Act Tax Provisions for Large Employers .”

Internal Revenue Service. “ Determining If an Employer Is an Applicable Large Employer .”

HealthCare.gov (Health Insurance Marketplace). “ Health Coverage If You’re Self-Employed .”

Internal Revenue Service. “ Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act .”

HealthCare.gov (Health Insurance Marketplace). “ Minimum Value .”

HealthCare.gov (Health Insurance Marketplace). “ Affordable Coverage .”

Internal Revenue Service. “ Small Business Health Care Tax Credit Questions and Answers: Calculating the Credit .”

HealthCare.gov (Health Insurance Marketplace). “ Exploring Coverage Options for Small Businesses .”

HealthCare.gov (Health Insurance Marketplace). “ Special Enrollment Period (SEP) .”

Connecticut State Office of the Health Care Advocate. “ How Indemnity Plans Work .”

HealthCare.gov (Health Insurance Marketplace). “ How to Pick a Health Insurance Plan .”

HealthCare.gov (Health Insurance Marketplace). “ How to Enroll in SHOP Insurance .”

HealthCare.gov (Health Insurance Marketplace). “ Find Out If Your Small Business Qualifies for SHOP .”

HealthCare.gov (Health Insurance Marketplace). “ How to Offer SHOP Health Insurance to Your Employees .”

Kaiser Family Foundation. “ 2023 Employee Health Benefits Survey .”

• Self-Employment: Definition, Types, and Benefits 1 of 20
• What Does It Mean to Be a Self-Employed Person? 2 of 20
• Independent Contractor: Definition, How Taxes Work, and Example 3 of 20
• What Is a Freelancer: Examples, Taxes, Benefits, and Drawbacks 4 of 20
• Gig Economy: Definition, Factors Behind It, and Criticism 5 of 20
• California Assembly Bill 5 (AB5): What's In It and What It Means 6 of 20
• 5 Challenges for Self-Employed Finance Professionals 7 of 20
• Healthcare Options for Small Businesses: A Comprehensive Guide 8 of 20
• Best Health Insurance Companies for the Self-Employed 9 of 20
• Choosing Disability Insurance for Self-Employed Individuals 10 of 20
• How to Get a Mortgage When Self-Employed 11 of 20
• Money Guide for Self-Employed Parents 12 of 20
• How to Calculate Your Self-Employed Salary 13 of 20
• SEO for Small Businesses: Everything You Need to Know 14 of 20
• How to Build Your Own Retirement Plan 15 of 20
• How Social Security Works for the Self-Employed 16 of 20
• Saving for Retirement When You Don't Have a Regular Job 17 of 20
• Simplified Employee Pension (SEP) IRA: What It Is, How It Works 18 of 20
• A 401(k) Plan for the Small Business Owner 19 of 20
• SEP IRA vs. Solo 401(k): Which Is Better for Business Owners? 20 of 20

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• Skip to main content
• SHOP Marketplace

Get health insurance for your small business

Health insurance is a critical factor for small businesses to help retain and recruit employees and sustain productivity and satisfaction. UnitedHealthcare offers a range of group health insurance options designed to help your small business save money and support your employees’ health and well-being.

Request a quote for your small business (2-50 employees)

Simply complete a quick form to get started with a quote for your small business. A UnitedHealthcare representative will get in touch and work with you to help find group health insurance options that best fit your business.

View plans or request a quote (2-50 employees)

To get more details on health insurance options for your small business, click on your state below. In markets where the Small Business Store is available, 1 you will be directed there. In markets where the Small Business Store is not available, you can request a quote from UnitedHealthcare.

• Connecticut
• District of Columbia
• Florida (North)
• Florida (South)
• Massachusetts
• Mississippi
• New Hampshire
• New York (upstate)
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• U.S. Virgin Islands
• West Virginia
• Back to top

For companies with 51 or more employees

Find the right medical plans for your employees and your business, plus supplemental plans for dental, vision, disability and more.

Explore products and solutions for small businesses

There's not just one way we work to help small businesses like yours. By offering benefits packages designed to improve employee experience and help employers manage cost, there's a number of products and solutions that may be right for your business.

Explore a range of group health plans and network options.

Discover how integrated pharmacy benefits from OptumRx may help lower costs for you and your employees.

Enhance your employees’ specialty benefits package with vision, dental, financial protection plans and more.

See how we are guiding employees to the behavioral care they need.

Get more health plan resources

Find information to help you and your employees get the most from their health benefits.

Did you know?

UnitedHealthcare’s employer-sponsored insurance plans serve groups that fall into three categories: Small Group plans refer to employers with up to 100 employees; Key Accounts is for employers with 101 to 5,000 employees; and National Accounts serves employers with more than 5,000 employees.

Building healthier workplaces together

A small business with about 40 employees shares why working with UnitedHealthcare has enabled them to provide a health plan that delivers on what matters to their employees.

Video transcript

Instrumental music plays throughout. Three white lines curl across a blue background. Blue text centers a white screen.

ONSCREEN TEXT:          Building healthier workplaces together

Upbeat music plays to a montage of shots from employees working in warehouse, a forklift, a man outside, seed being filled into a bag, a white truck driving through plains, and a blonde-haired woman smiling.

The screen dissolves into white with the blue United U logo appearing in the center.

Inspirational music begins playing as we see an aerial view of the Albert Lea Seed Plant. The scene switches to an aerial view of a baseball field, then to the Albert Lea Seed Plant entrance. The view moves inside where Matt Helgeson speaks to a circle of employees in the warehouse.

MATT: Okay, good morning, everybody.

We've got trucks at the dock today, so it's going to be a busy Monday.

We've got trucks on the scale as well, so we'll need a couple samples pulled up.

The screen shows Matt being interviewed before a white background.

MATT: Albert Lea Seed has been in business for almost 100 years,

A blue bar slides into the bottom left of the screen, containing white text.

ONSCREEN TEXT:          Matt Helgeson Owner, Albert Lea Seed

MATT: and today our focus is distributing seed throughout the Upper Midwest and throughout the country.

A white text box with the Albert Lea Seed logo scrolls down from the top left of the screen.

ONSCREEN TEXT:          Organization Albert Lea Seed 

Location Albert Lea, MN

Industry Agriculture

Established 1923

Number of employees 40

Music continues. We see Matt checking seed and then a man pouring seed into a bag in a warehouse.

Matt: One of our key focuses is distributing an organic and non-GMO seed to farmers who are under those production methods.

We see Matt and another man examining seeds in a field.

MATT: Many of our seeds that we offer here are produced by local farmers.

Those seeds include soybeans especially, and also small grains; things like oats, wheat, barley, and rye.

We see palettes of bags of organic grain seed and barley. Scene cuts to a white truck driving on a dirt road in the fields.

MATT: Those relationships with our customers matter to us, and they matter to the farmer, and so we try to offer honest advice and seeds in which the quality we believe is truly there.

Matt gets out of truck and shakes hands with another man in a field. Matt and a man inspecting crop.

Nicole Hansen begins speaking. We see the Albert Lea Seed building sign, then Nicole speaking to employees in the warehouse, handing out open enrollment booklets. A white UnitedHealthcare U logo is at the bottom right corner of the screen

NICOLE: Good morning, everyone. I'm going to briefly talk to you guys this morning about open enrollment for 2022. I'm going to hand out some booklets for everyone.

The screen changes to Nicole Hansen interviewing before a white background. A blue bar slides into the bottom left of the screen, containing white text.

ONSCREEN TEXT:        Nicole Hansen Human Resources, Albert Lea Seed

NICOLE: A lot of people are surprised to hear that the Albert Lea Seed House even offers benefits just because we're such a small employer and we're not actually required to offer any type of health insurance.

Nicole continues speaking while we see a montage of a forklift in the warehouse.

NICOLE: We want the best for our staff and for their families. We take a lot of pride in not having high turnover rates, and that's because of how we treat our employees and how comfortable they feel with us.

The screen switches back to Nicole in front of a white background.

NICOLE: We meet with our broker every year, the controller and I do, and we're always looking at a plan that's going to impact our staff in the most positive way.

Nicole continues speaking while we see a montage of employees working with seed in the warehouse.

NICOLE: Which one is going to cover them is depending on what's going on in their life and make a positive impact on them and their families.

Matt begins speaking and we see a montage of workers in the warehouse.

Matt: The health of our employees is critically important.

The screen changes to Matt being interviewed in front of a white background.

MATT: The UnitedHealthcare plan has been very beneficial for all of our employees here.

While Matt is speaking, we now see a montage of employees at work and the white UnitedHealthcare U logo in the bottom right corner.

MATT: The incentives for employees to improve their health and have more of a preventative concept is really important.

Nicole is speaking before a white background.

NICOLE: The incentive program that's offered through UnitedHealthcare is a huge success with all of my staff here.

While she is speaking, we see Nicole and Matt walking and talking outside.

NICOLE: They love the incentive for them to get up and get moving. It gives them a great feeling, and they love the extra cash flow into their HSA. These plans that we offer through UnitedHealthcare are very important to us because happier employees are more productive employees, which are healthier employees.

The screen is changing back to Nicole speaking in front of a white background

NICOLE: And that's exactly what we strive for here at the Albert Lea Seed House.

Blue text flashes quickly on screen, centering a white background.

ONSCREEN TEXT:        There

ONSCREEN TEXT:        for

ONSCREEN TEXT:        what

ONSCREEN TEXT:        matters

A blue u-shaped logo appears against a white background, followed by text.

ONSCREEN TEXT:        UnitedHealthcare

Small black text runs along the bottom of the screen.

ONSCREEN TEXT:        All trademarks are property of their respective owners.

ONSCREEN TEXT:        Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates.

ONSCREEN TEXT:        © 2023 United HealthCare Services, Inc. All Rights Reserved. 23-2747306

ONSCREEN TEXT:        EI232767439 11/23

• Open a New Account

The Lively Blog

SIGN UP FOR OUR

Stay up to date on the latest news delivered straight to your inbox

Health Insurance Strategies for LLC Owners

Kate Dore · December 10, 2019 · 3 min read

As a small business owner, offering employees affordable health insurance may be one of your biggest concerns. The expense of covering employees—including your own family—can be costly. Paying for health insurance can be challenging, but as a business owner, there are many other things you have to consider. The government has different regulations you must follow depending on the structure of your business. If you have a limited liability corporation (LLC), here are some specific details you should know.

What is a limited liability corporation (LLC)?

When you launch a business, you have several options on how to structure the company. Each of these business structures may have various legal and tax implications, depending on where you live.

One popular business structure is a limited liability corporation or LLC. This is for people who want legal separation from their business—without the higher costs of other business entities. It’s easy to form an LLC, and you may enjoy the flexibility of filing taxes as a single-member LLC (basically a sole proprietor), partnership, S corporation, or C corporation. Each of these options impacts your company’s options for health insurance.

Health insurance options for LLC owners

After setting up your company's business structure, you may be wondering if you can qualify for health insurance through your LLC.

The short answer: it depends.

The company’s tax filing will impact your options. They may fall into one of two categories—either you buy health insurance individually or qualify for a company group health insurance plan.

Here’s a breakdown of each option:

LLC filing as a sole proprietor - If you're a single-member LLC, taxed as a sole proprietor, you personally won’t qualify for a group health insurance plan through your company. However, you can still purchase a policy on your own. It can be expensive to cover the premiums, but fortunately, you can deduct 100% of the cost on Schedule 1 of your tax return.

LLC filing as a partnership - If the company is a partnership with two or more owners, also called “members”, you may have the option of qualifying for the company’s group insurance plan—or, you can buy health insurance on your own. If you purchase insurance on your own, you may deduct 100% of the cost like sole proprietors. The tax deduction for a company plan happens on Form 1065 and Schedule K and K1.

LLC filing as an S corporation - For S corporations, the company may deduct health insurance premiums for employees or shareholders. If shareholders own more than 2 percent of the company, the business must add the cost of premiums to the shareholder’s W-2. If the shareholder qualifies, they may also deduct the expense on Schedule 1.

LLC filing as a C corporation - If you file taxes as a C corporation, the company may deduct the full cost of employee health insurance on Form 1120. Employees may enjoy the benefit of health insurance tax-free.

Seek guidance for your company’s health insurance

Most small business owners don't have tax or legal expertise, which is why you may need local guidance. Before choosing a business entity, speak with a local attorney who can share state-specific advice. After that, you can work with a local tax professional on the best options for filing taxes as an LLC. They can walk you through your company's health insurance goals—and how each option may impact your taxes.

Kate Dore is a Nashville-based freelance personal finance writer and Candidate for Certified Financial Planner™ Certification. She teaches financial literacy with Junior Achievement and serves as Director of Public Relations for the Financial Planning Association of Middle Tennessee. Her work has been published in Business Insider, Financial Planning Magazine, and Simple Money Magazine.

2024 and 2025 HSA Maximum Contribution Limits

Lively · May 9, 2024 · 3 min read

On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Interpreting Indiana's conflict between health insurance and health care in 2024

Editor's Note: The following is part of a class project originally initiated in the classroom of Ball State University professor Adam Kuban in fall 2021. Kuban continued the project this spring semester, challenging his students to find sustainability efforts in the Muncie area and pitch their ideas to Ron Wilkins, interim editor of The Star Press, Journal & Courier and Palladium-Item. This spring, stories related to health care will be featured.

In the U.S. health care industry, individuals with chronic diseases make up 86% of health care costs, according to a 2020 article published on the National Library of Medicine's website , and chronic disease is one of the main variables that increase health care utilization.

The more chronic diseases you have, the more money you are going to be spending on health care, according to an article in the Journal of the American Medical Association.

Conversely, insurance companies inherently want to avoid high-risk individuals who could potentially cost their company the most money, meaning that these "vital few" are the exact same group that health insurance agencies are attempting to avoid.

For individuals like export manager Pamela Stevens, this means being stuck between two complex industries that are both driven to extract a profit from their customers.

Stevens suffers from a combination of Raynaud's syndrome, polymyositis and scleroderma. Dealing with three separate autoimmune diseases on a daily basis, Stevens remains one of the "vital few" year after year.

“People are afraid to go to the doctor,” Stevens said. “It’s not patient care; it’s a business.”

In the state of Indiana , companies with fewer than 50 full-time employees are not required to provide health insurance. If you found yourself in this position without qualifying for company-provided insurance, you could face crippling medical debt.

Fortunately for Stevens, she qualifies for company-sponsored health insurance coverage.

Stevens explained that, with insurance, she still paid $2,224 out of pocket for her medications and $2,316 out of pocket in copays in 2023.

According to the National Institute of Health , the average amount spent on health care for patients with at least two chronic conditions in the United States is $4,385, and the expenditure increases by an average rate of 20.25% per additional chronic condition that a patient possesses.

Additionally, for the "vital few," the National Association for Chronic Disease notes that health care costs for those with chronic conditions are five times higher than those without such a condition.

The iron triangle of health care: Quality, access and cost

John Horowitz, interim department chair of economics at Ball State University, explains that the health care system can generally be broken down into a single concept: the iron triangle. Quality, access and cost are the three pillars of this notion with each one directly and indirectly affecting the other pillars.

“If you try to bring down costs, you might also be getting rid of a lot of access,” Horowitz said.

The idea of the health care system being broken down into this simple idea is simultaneously what makes the industry so complex.

In 1987, fellow economist Thomas Sowell posited a similar idea in his book, A Conflict of Visions: Ideological Origins of Political Struggles.

“There are no solutions,” Sowell wrote. “There are only trade-offs.”

This idea rings especially true for the health care industry.

“For example, take the case of Medicaid,” Horowitz said. “Medicaid tells doctors what they’re going to pay them, and Medicaid pays really low rates. What is the incentive to take Medicaid patients?”

A 2022 study from the RAND Corp. showcased a similar problem for Medicare patients, finding that Indiana residents who are not in Medicare-paid hospitals nearly quadruple the amount of money that Medicare beneficiaries paid for the same services.

Similarly, insurance companies are asking themselves the same question when faced with potentially high-risk customers.

“Hospitals make most of their money on a few patients,” Horowitz said. “Patients who — for the insurance companies — are the highest cost.”

Dawn Velasquez, fellow of the Society of Actuaries, affirmed the idea that insurance companies themselves are often used as scapegoats for larger issues within the healthcare industry.

"The whole system is broken,” Velasquez said. “Take pharmaceuticals, for example; they can basically charge whatever they want. My family can make it because we work for large corporations that offer good employee-sponsored health insurance plans, but what about people who don't?"

Stevens, whose father and brother are both doctors, shares a similar notion.

She explained that problems often arise when health care entity mergers push physicians out of their private institutions to work within their system.

“These conglomerates that are merging are forcing private physicians to join,” Stevens said. “Then these medical entities are charging an arm and a leg for procedures; some patients can’t afford to get the care they need. They want to push you out so they can get another bed available for someone right behind you.”

Mergers play a role

According to the American Medical Association , the percentage of physicians working in private institutions fell by 13% between 2012 and 2022.

Private physicians often join larger conglomerates to take advantage of economies of scale by merging for potential cost savings and to increase the likelihood of achieving higher reimbursement levels.

In a 2022 study conducted by UC Berkeley's Petris Center , researchers found that hospital mergers in Indiana were linked to a 10.6% increase in hospital prices for Hoosiers.

The Indiana legislature looked to tackle this issue early in its 2024 session with Senate Bill 9 .

The bill, which was signed by Gov. Eric Holcomb on March 13 after approval in both houses, forces health care entity mergers that meet or exceed $10 million to notify the attorney general’s office 90 days before a deal can be settled to allow time for state regulators to review the deal and its potential impact.

The new law expands on recent progress made within the Hoosier state after 2023 House Bill 1004 was passed last year in an attempt to protect patients by providing an oversight taskforce to monitor patients' costs, as well as monitor Medicaid reimbursements in the state.

When you use links on our website, we may earn a fee.

• Best General Liability Insurance for Small Business

As a small business owner, it’s important to have the right types of insurance to protect your company from potential risks. General liability insurance is one of the most essential policies, which covers your business against third-party claims of bodily injury, property damage, and advertising injury, other than auto or aviation accidents and employee injuries.

When shopping for a general liability insurance provider, there are a few things to consider, like coverage options, cost, and customer service. To help you find the best general liability insurance for small businesses, we rated and reviewed some of the top insurers.

Table of Contents

The Hartford  »

Over 200 years in business

Wide variety of coverage options

Online claim reporting

24/7 customer service

Below-average customer satisfaction rating

Not available in all states

The Hartford offers the best general liability insurance for small businesses overall. The company has been in business for more than 200 years, and it currently insures more than 1.5 million small business owners across the U.S.

General liability insurance from The Hartford covers your business against third-party claims of bodily injury, property damage, advertising injury, and other risks. The company serves dozens of different professions, including architects, interior designers, lawyers, schools, hair salon owners, biotech companies, and others.

The Hartford has an excellent selection of coverage options. In addition to general liability insurance, you can get workers’ compensation, commercial auto insurance, home-based business insurance, inland marine insurance, management liability insurance, surety bonds, and other policies you might need.

You can get quotes online, and The Hartford has an online claim reporting system. If you need help filing a claim or have questions about your coverage, you can reach a customer service agent 24/7.

You can purchase general liability insurance from The Hartford in most states. However, the company doesn’t sell insurance in Alaska or Hawaii.

Read more in our The Hartford review .

General liability policies start at $17 per month

Purchase coverage in minutes

Short-term coverage available

Unlimited COIs

Fewer coverage options than some other insurers

No commercial auto insurance

Thimble doesn’t underwrite its own insurance policies

Thimble has some of the most affordable general liability insurance for small businesses. According to Thimble’s website, its general liability insurance policies start at just $17 per month. However, most small business owners pay an average of around $42 per month for general liability insurance.

One of the most unique features of Thimble is the flexibility of coverage. You can purchase insurance for a year, month, or even a day, depending on your business’s needs. It’s easy to get a quote online and purchase coverage within minutes. Plus, you can modify your policy, pause it, or cancel your coverage at any time.

Once you have general liability insurance, you can access your certificate of insurance (COI) instantly and share it with as many clients as you need, at no extra cost.

Thimble offers a good selection of coverage options, but not as many as some competitors. Depending on your state, you can get business equipment protection insurance, workers’ compensation insurance, product liability insurance, cyber insurance, hired and non-owned auto insurance, and a few others.

Nationwide  »

Highest J.D. Power rating for overall customer satisfaction

Offers employee benefits packages

Covers a variety of industries and professions

Multiple endorsements available for general liability insurance

Some policies are not underwritten by Nationwide

Might need to contact an agent to purchase a policy

Nationwide stands out for its superior customer satisfaction. In J.D. Power’s 2023 U.S. Small Commercial Insurance Study , Nationwide ranked first place for overall customer satisfaction out of 13 insurers. Nationwide’s score is 883 out of 1,000, which is much higher than the study average of 847.

Nationwide offers excellent general liability insurance coverage for small business owners in a variety of industries. Some of the covered professions include florists, dry cleaners, gift shops, retail stores, auto shops, contractors, wholesalers, restaurants, and HVAC businesses.

Several endorsements can be added to a Nationwide general liability insurance policy, such as hired and non-owned auto insurance, fire legal liability insurance, directors and officers liability insurance, products and completed operations liability insurance, and umbrella liability insurance.

Another benefit of Nationwide is that it offers employee benefits packages. If you want to provide supplemental health insurance, life insurance, or other benefits to your employees, Nationwide has options for you.

Some of Nationwide’s business insurance policies are underwritten by partner companies. However, Nationwide only works with reputable underwriters, like Hiscox and Liberty Mutual , which have strong financial stability ratings.

Learn more in our Nationwide review .

Basic general liability policies provide more coverage than what other insurers offer

Sells short-term liability insurance through Thimble

Offers online quotes

Fewer endorsements than some other insurance companies

Doesn’t sell coverage in Alaska

Small business owners who want general liability insurance with the most comprehensive coverage should consider Hiscox. A standard general liability policy from Hiscox provides more coverage than what other insurers offer, such as supplement payments when you’re facing a claim and worldwide insurance coverage for certain incidents.

If you own a consulting or technology services business, a general liability insurance policy from Hiscox includes all the basic coverages plus $25,000 in electronic data liability coverage.

Another benefit of Hiscox’s general liability insurance is that coverage is automatically extended to your employees. If you have part-time workers, temporary workers, or volunteers, their actions are covered under your basic general liability insurance policy.

In terms of endorsements, Hiscox offers the most common options, like professional liability, cyber security, workers’ compensation, and commercial auto insurance. Hiscox also sells short-term liability insurance underwritten by Thimble if you only need coverage for a certain period of time.

Hiscox has been in business since 1901 and has more than 500,000 small business customers. You can purchase small business insurance from Hiscox in every state except Alaska.

Read more in our Hiscox review .

Insures many different industries, including self-employed business owners

Most claims are decided within 48 hours

Easy to file claims online

Offers live chat during business hours

Operates entirely online

Fewer specialty coverage options than some competitors

Next Insurance is a great option for small business owners who are self-employed. Whether you’re a solopreneur or have a team of 10, you can get the coverage you need. And, you can customize your policy with endorsements for the most tailored protection.

Next sells general liability insurance to more than 1,300 businesses, including freelance writers, Amazon sellers, therapists, fitness instructors, actors, event planners, motivational speakers, pressure washing services, and hundreds of others.

Besides general liability insurance, Next offers several other types of business insurance, like commercial auto insurance, professional liability insurance, business owner’s policies, cyber insurance, umbrella insurance, liquor liability insurance, contractor license bonds, and tools and equipment coverage.

Next operates entirely online and through its mobile app, but you can chat with a live agent if you need assistance. It’s easy to file a new claim or check the status of an existing claim online or in the app. Next strives to resolve all insurance claims within 48 hours, so you can expect to be reimbursed for losses promptly.

What Is General Liability Insurance and How Does It Work?

General liability insurance covers small businesses against third-party claims of bodily injury, property damage, and advertising injuries like libel and slander, other than auto or aviation accidents and employee injuries. Specifically, it will cover your financial responsibilities, such as medical expenses to another person, and your legal fees and court costs.

If your business is accused of a third-party liability claim, you can report it to your insurance company. After the insurance company investigates the claim, they will determine an appropriate settlement. The insurer will cover the settlement, as well as your legal fees, minus any deductibles.

Here’s an example of how general liability insurance works: Imagine you own a beauty salon and a customer slips on a wet floor. They get hurt and need medical attention. If they claimed that your business was responsible for their injury, your insurance company would cover a settlement with the customer and pay for your legal defense.

How Much Does General Liability Insurance Cost?

To keep your general liability insurance in force, you must pay a monthly or annual premium. According to The Hartford, the average premium for general liability insurance is $1,057 per year or $88 per month.

However, premiums are personalized for every business based on a variety of different factors, such as:

• Business size
• Years in business
• Coverage limits
• Insurance claim history

To get the most accurate cost for your business, you’ll need to get a quote directly from the company you’d like to use.

Features To Consider When Buying General Liability Insurance

Every general liability insurance policy is slightly different. When purchasing general liability coverage, there are a few important things to consider:

General liability insurance policies have a coverage limit, which is the maximum amount of money the insurer will pay for claims. Most general liability policies have a per-occurrence limit and an aggregate limit.

The per-occurrence limit is the most the insurer will payout for all claims resulting from one incident. The aggregate limit is the maximum amount the insurer will pay for all claims filed during the policy period (usually one year).

When shopping for general liability insurance, make sure to choose a policy that provides sufficient coverage limits for your business’s needs and unique risks. For example, if you own a construction company, you may need higher coverage limits than a self-employed social media manager.

Also, keep in mind that policies with higher coverage limits will have higher premiums.

One of the most important factors to consider when shopping for general liability insurance is the premium. The cost of general liability insurance depends on many different factors and is personalized for every small business.

Before you choose a general liability insurance policy, it’s a good idea to get customized rate quotes from several different insurance companies. Comparing quotes from multiple insurers will help you find the most affordable policy for your business and your coverage needs.

Most insurance companies allow you to pay your general liability insurance premium on an annual or monthly basis. You must continue to pay your premium on time in order to keep your policy in force. If you fall behind on your payments or stop making your payments altogether, the insurer can cancel your coverage.

Every insurance company has a different process for handling claims. While many insurance providers allow business owners to file claims online, some companies require you to file claims by contacting an agent.

If you prefer to manage your policy and claims without the help of an agent, consider choosing an insurance company that has an online and/or mobile claim reporting process. We found that Next and Thimble have some of the best online claim handling.

One of the best resources to consult when choosing a general liability insurance company is J.D. Power’s 2023 U.S. Small Commercial Insurance Study . Claim satisfaction is one of the criteria used to generate the study rankings, and it can give you a good idea of which companies excel at claims handling.

When evaluating general liability insurance companies, check each company’s financial stability rating. You can find an insurance company’s financial strength score from independent agencies like AM Best and Fitch.

Choose an insurance provider that has a strong financial stability rating, which means it has an excellent ability to meet policyholder obligations and pay claims. If a company has a poor financial strength score, it could indicate issues with settling claims or even a risk of bankruptcy.

How To Choose the Best General Liability Insurance

Follow these steps to choose the best general liability insurance for your small business:

• Review coverage options: Find out what coverage options the insurance company provides. You can check to see what endorsements can be added to a general liability insurance policy and what other insurance products are sold. For example, if you want to offer benefits to your employees, see if the insurer offers group insurance policies.
• Check for exclusions: Every general liability insurance policy has some exclusions and limitations. Read the fine print before you purchase a policy and make sure you won’t be affected by any excluded losses.
• Get customized quotes: Get rate quotes from a few different insurance companies before you purchase coverage. Aim to compare quotes from at least three insurance providers to see which one can offer you the best deal.
• Read customer reviews: It can be helpful to read customer reviews to see what current and past policyholders think about the company. This is a good way to identify consistent complaints, especially around customer service or claim handling.

Alternatives to General Liability Insurance for Small Businesses

There are no direct alternatives to a general liability insurance policy. However, some small business owners can benefit from a business owner’s policy (BOP). A BOP is a bundle that includes general liability insurance and commercial property insurance. BOPs are usually cheaper than purchasing these two policies separately.

The Bottom Line

Overall, The Hartford has the best general liability insurance for small businesses. The company has more than 200 years of experience selling insurance and it currently serves over a million small business owners. The Hartford offers a variety of coverage options and it has 24/7 customer service.

While The Hartford stands out as the best provider overall, the right general liability insurance company for your business may be different. Before you purchase a policy, it’s a good idea to review several insurance companies to find the best one for your business’s coverage needs and budget.

How We Chose the Best General Liability Insurance Companies

To choose the best general liability insurance for small businesses, we started by reviewing 10 different insurance companies that offer this type of coverage. Then, we assessed each one based on important factors, like coverage options, financial strength, customer satisfaction, claim processing, coverage limits, and availability. We also paid attention to the types of business insurance that each company sells, and prioritized insurers that offer other products that can be beneficial to small business owners.

Another thing we considered was the industries and professions that each insurance company serves. Most companies we reviewed sell general liability insurance to a wide variety of business types, but some offer a bigger variety than others. For instance, some insurers automatically cover home-based businesses, while others require an add-on if you run a business out of your home.

WHY SHOULD YOU TRUST US?

Our insurance contributors and editors have years of experience researching and reviewing insurance companies. Elizabeth Rivelli, the author of this guide, has been covering insurance and reviewing insurance providers for about five years. Her specific areas of expertise include commercial insurance, car insurance, health insurance, and life insurance. As a small business owner herself, Elizabeth understands the importance of having the right insurance protection, even if you’re in a low-risk industry.

General Liability Insurance FAQ

A general liability insurance policy typically covers third-party claims of bodily injury, property damage, and advertising injury, other than auto or aviation accidents and employee injuries. If your business is accused of one of the claims, your general liability insurance policy will cover a settlement or judgment with the other party, as well as your legal defense and court costs.

Most small businesses can benefit from general liability insurance. This type of insurance covers many of the most common risks that all small business owners can face. While general liability insurance is not legally required, it may be required by some of your clients. It might also be required by landlords if you want to lease a commercial office space.

Most general liability insurance policies have a per-occurrence limit and an aggregate limit. You can find your policy’s coverage limits by reviewing your insurance binder or policy statements. Depending on your insurance company, you might be able to access these documents online, or you may need to request a copy from your insurance agent.

The process of filing a general liability insurance claim differs based on the insurance company. In most cases, you will need to report the claim to your insurer using an online form or by calling an agent directly.

You must complete the claim paperwork and submit documentation for the claim, such as communication with the person suing your business or photos of property damage. Once the claim has been investigated and approved, the adjuster will determine a settlement and reimburse you for legal expenses.

About Our Team

Elizabeth rivelli.

Contributor

Stephen Yao , Ph.D.

Insurance Reviewer

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.

An official website of the United States government

Here's how you know

Official websites use .gov A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS A lock ( ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.