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Best Health Insurance Companies for Small Businesses for 2024

Blue Cross Blue Shield is our top pick for its availability and wellness programs

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We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more .

Blue Cross Blue Shield stands out as the best health insurance company for small businesses because of its range of coverage options. The company offers a nationwide preferred provider organization (PPO) network and extra benefits for employees, including an extensive discount program. 

Depending on your state, you may have a few options for finding health coverage for your employees, including through the Small Business Health Insurance Options Program (SHOP)—a government marketplace for small business health plans—and by purchasing a traditional group health plan from a broker or directly from an insurer. 

To choose the best health insurance companies for small businesses, we evaluated major health insurance carriers based on financial strength, customer satisfaction, coverage options, telehealth and wellness benefits, digital tools, and more. These are our top picks. 

  • Best Overall: Blue Cross Blue Shield
  • Best for Customer Satisfaction: Kaiser Permanente
  • Best for Part-Time and Seasonal Workers: UnitedHealthcare
  • Best for Self-Funded Plans: Aetna
  • Our Top Picks

Blue Cross Blue Shield

Kaiser Permanente

UnitedHealthcare

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The Bottom Line

Small business insurance options.

  • Frequently Asked Questions (FAQs)
  • Methodology

Best Overall : Blue Cross Blue Shield

Blue Cross Blue Shield (BCBS) offers flexible options to small business owners, including the option to access the nation’s leading PPO network. In many states, BCBS employee plans come packed with extra benefits, and most plans include an extensive discount program.

Nationwide availability

Health and wellness discounts

Workplace wellness programs in many states

Poor J.D. Power ranking in some regions

Blue Cross Blue Shield, which is also our pick for the best health insurance company overall, offers employers many options. Among them are plans that include access to the BlueCard PPO network, which gives employees coverage when traveling nationwide. In some states, BCBS offers fully insured, level-funded, and self-funded plans. Blue Cross Blue Shield is a group of companies, so benefits and plans vary by region, but many member companies offer extra benefits. 

For example, the member company Anthem provides an employee assistance program at no extra cost to help members manage stressful events, from legal issues to the search for care. In many states, BCBS plans also come with 24/7 telehealth and access to mobile app plan management. Most members also get access to Blue365, an extensive discount program that also offers a $25 gym membership in some states. 

BCBS and Anthem companies had a combined average of 3.5 stars out of 5 stars from the National Committee for Quality Assurance (NCQA), an independent body that judges insurance plans on the quality of their providers, as well as customer satisfaction. But customer satisfaction ratings vary by region. Check the 2023 J.D. Power U.S. Commercial Member Health Plan Study to see how BCBS fared in your region. While rankings are poor in many regions, BCBS was top-ranked in Florida. 

BCBS companies also have an A or A- financial strength rating from AM Best . 

Best for Customer Satisfaction : Kaiser Permanente

Kaiser Permanente has top customer satisfaction ratings from the NCQA and J.D. Power, along with an award-winning app and a suite of virtual care options.

4.2-star average NCQA rating

Top-ranked by J.D. Power in most regions where available

Administers HRAs, HSAs, and FSAs

Robust support for chronic conditions

Only available in eight states and D.C.

Kaiser Permanente has better customer satisfaction ratings than any of the major health insurance providers we reviewed, with a 4.2-star average NCQA rating and top J.D. Power rankings in four regions. The company offers employers many options. While Kaiser is known for its health maintenance organization (HMO) plans , it also offers preferred provider organization (PPO) plans . Employees can pair some plans with a Kaiser-administered health reimbursement arrangement (HRA) , health savings account (HSA) , or flexible spending account (FSA) . Members can even submit HRA and FSA claims using their mobile phone cameras. 

Free wellness coaching is included at no cost. Members who are at risk for chronic conditions are automatically enrolled in a disease management program with comprehensive support and remote patient monitoring. And Kaiser offers several additional employee benefits, including dental, vision, acupuncture, and chiropractic. Kaiser is also our top pick for the best digital tools, with an award-winning app, 24/7 virtual care, mental health apps, and online physical therapy. 

The main drawback is that Kaiser Permanente isn’t available everywhere. The company only offers plans in eight states and the District of Columbia. Kaiser does offer a SHOP (Small Business Health Options Program) plan in Georgia and Virginia.

Best for Part-Time and Seasonal Workers : UnitedHealthcare

UnitedHealthcare offers small business plans nationwide, including a unique coverage solution for contractors, part-time workers, and seasonal employees.

Offers a unique program for non-benefit-eligible workers

Offers wellness resources and incentives

A+ financial strength rating from AM Best

J.D. Power ratings vary by region

UnitedHealthcare is our top pick for small businesses with several types of employees and contractors, including part-time and seasonal workers. Its FlexWork program offers coverage for non-benefit-eligible employees nationwide. The program provides group-premium-equivalent rates for three plan types designed for different types of workers, and you can add extra benefits like $0 telehealth, dental, and vision. 

UnitedHealthcare also offers members access to Self Care (a wellness app), fitness incentives, an online weight loss program, a smoking cessation program, and more. Plus, UnitedHealthcare offers a large provider network of more than 1.3 million healthcare providers. 

UnitedHealthcare also boasts an A+ financial strength rating from AM Best and a 3.5-star average NCQA rating. Though J.D. Power ratings vary by region, UnitedHealthcare was the top-scoring company in Texas and Virginia. The company also offers SHOP plans in Maryland, Massachusetts, New York, and D.C.

Best for Self-Funded Plans : Aetna

Aetna is one of the few health insurance companies to offer self-insured plans tailored to small businesses. We also like that it offers virtual primary care and a CVS allowance.

Offers self-funded plans for up to 25% upfront savings

Offers a variety of health expense funds

Optional robust behavioral health benefits

Members of some plans can access affordable care at MinuteClinic locations

Fully insured group plans in some states don’t include MinuteClinic benefits

Self-funded plans from Aetna offer up to 25% savings upfront, plus stop-loss insurance if your claims for a particular month go over your maximum claims amount. When you renew your plan, Aetna will refund 50% of any surplus funding to you. 

Members get access to CVS Health virtual primary care plus up to a $100 allowance for health and wellness products at CVS. The company also offers HRAs, HSAs, FSAs, and retirement reimbursement arrangements (RRAs) in most states. In addition, you have the option of adding behavioral health benefits that include virtual counseling, mental health tools, and an employee assistance program. Many plans offer MinuteClinic benefits as well, but fully insured plans in some states are excluded. 

Aetna has a 3.5-star average NCQA rating and a financial strength rating of A with AM Best. The company also came out on top in the East South Central, Northwest, and Southwest regions in the 2023 J.D. Power U.S. Commercial Health Plan Study, but ratings vary by region. Aetna offers SHOP plans in Maryland and D.C.

Blue Cross Blue Shield offers the most options for employers, with many plans providing access to the BlueCard PPO network and 24/7 telehealth, along with a variety of funding options in some states. If you’re looking for a self-funded plan, Aetna offers the best option tailored to small businesses in many states, as well as CVS benefits and optional robust behavioral health benefits. Kaiser Permanente takes the cake for customer satisfaction, with high third-party ratings and great digital tools, while UnitedHealthcare’s unique FlexWork program makes it our top pick for nontraditional employees. 

When choosing small business health insurance, you have a few options, according to Robert Slayton, an employee benefits consultant. 

Small Group Health Insurance

One option is to purchase a small group plan directly from a commercial health insurance company that serves small businesses or through a broker. “It gives the employer control over which plans to offer and [assurance] that people will remain covered while employed,” said Slayton. However, you may also need to offer COBRA or mini-COBRA plans. Mini-COBRA plans are required by some states for companies with fewer than 20 employees.

Self-Funded Plan

You may be able to save money by taking on the responsibility of paying out employee health claims yourself. This is known as a self-funded or self-insured plan, which typically relies on a commercial health insurer to administer the provider network and provide assistance with enrollment and claims processing. 

Health Reimbursement Arrangement (HRA) 

Another option is for the employer to offer a health reimbursement arrangement (HRA), which is an employer-funded group plan that pays employees back for qualified health expenses up to a certain dollar amount each year. Expenses may include premiums for an employer-sponsored plan, as well as copays and coinsurance. There are several types of HRAs, including a qualified small employer HRA (QSEHRA) for companies with fewer than 50 full-time employees. Another type is an individual coverage HRA (ICHRA), which lets employees use the funds to buy their own health insurance with pretax dollars. Funds can also be used for copays and deductibles. “[Employers] choose an amount to give each employee so that the employee can purchase coverage on their own,” said Slayton. “Employees who claim this reimbursement must have an underlying individual plan or Medicare.” 

SHOP Plan 

The Small Business Health Insurance Options Program allows you to compare small business plans offered on the ACA Marketplace and offer one or multiple options to your employees. These plans are typically the only route to the Small Business Health Care Tax Credit. However, they’re only offered on the federal marketplace in eight states and on state-run exchanges in 13 states. 

Frequently Asked Questions

Do small businesses have to provide health insurance.

If you employ fewer than 50 people full-time, you are not required to offer health insurance to your employees. But more than half of firms that size do offer it, according to the National Federation of Independent Business. A 2022 U.S. Chamber of Commerce survey found that 88% of employees rank health insurance as the most important employer-provided benefit. If you have 50 or more employees and choose not to offer coverage that meets federal standards, you’ll be required to pay a penalty called a Shared Responsibility Payment instead.

How Much Does Small Business Health Insurance Cost?

Costs vary by location and the network and coverage you choose, but on average, small businesses contributed $7,349 per single covered employee in 2023. Experts recommend keeping your total employee benefit costs between 10% to 20% of your overall revenue.

What Is a Self-Insured Health Plan?

A self-insured health plan is a type of group health insurance in which the employer collects premiums and is responsible for paying claims when employees need care. These plans can be self-administered, or the business may work with an insurance provider to get stop-loss coverage (which puts a ceiling on your risk) and administrative support. 

There are several benefits to self-funded plans. Employers can keep surplus premiums (or receive a portion returned by the stop-loss carrier), plans can be customized to a greater degree, and certain ACA provisions that lead to high costs can be avoided. Increasingly, small businesses are opting for self-funded coverage. But self-insured plans aren’t right for every business.

Can an S Corp Pay for Health Insurance?

Yes. An S corp can provide health insurance for its employees. However, most health insurance companies require you to have at least two employees to get a group plan, so if you are an S corp owner and don’t have employees, you’ll need to get individual health insurance from the ACA Marketplace. Additionally, you can’t provide an HRA to anyone with a greater than 2% stake in your company.

How We Chose the Best Health Insurance Companies for Small Businesses

We chose the best health insurance companies for small businesses by looking at our research for our list of the overall best health insurance companies and then investigating what options these insurers offer for small businesses looking to buy plans for their employees. 

To identify which health insurance companies to review for our overall winners list, we analyzed business and market insight databases, considered health insurance company market share, and researched user-generated data from Google to determine public interest and trends in health insurance companies and plans. 

We collected data from the National Committee for Quality Assurance (NCQA), an independent organization that rates healthcare plans on quality and patient satisfaction. We also gathered data from state and federal government insurance marketplace websites and databases, and directly from companies via websites, media contacts, and existing partnerships. The data collection process took place between Sept. 29 and Oct. 23, 2023.

We then developed a quantitative model that scores each health insurance provider based on 27 criteria that fall into four major categories and are crucial in evaluating the company’s offerings and benefits. We weighted the four categories as follows for this article:

  • Plan Quality & Customer Satisfaction : 20%
  • Plan Features : 40%
  • Availability : 15%

Read our full methodology for reviewing health insurance companies.

J.D. Power. “ Commercial Health Plan Member Satisfaction Declines in Key Areas, J.D. Power Finds. ”

The Commonwealth of Massachusetts. " MiniCobra Continuation of Coverage Benefits Guide ."

Healthcare.gov. " What's An Individual Coverage Health Reimbursement Arrangement (HRA)? "

Healthcare.gov. “ SHOP Marketplace Basics for Employers .”

U.S. Department of Health and Human Services. “ As a Small Business Owner, Am I Required to Offer Health Insurance to My Employees? ”

KFF. " 2023 Employer Health Benefits Survey (Section 6) ."

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Small business health insurance options

Health Benefits • January 8, 2024 at 9:45 AM • Written by: Elizabeth Walker

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If you’re a small business owner or employer shopping for employee health benefits, you may be finding it hard to grapple with the rising cost of health insurance . According to recent data , 98% of employers feel the cost of providing healthcare to their employees is excessive—and small business owners are especially vulnerable to these costs.

These increased costs, along with group health insurance’s rigid participation requirements, have given employers pause when considering offering a health benefit. But, not offering health benefits costs more in the long run because employees will look elsewhere for jobs with better benefits packages.

Fortunately, there are many affordable small business health benefits options, including alternatives to group health insurance . Below, we’ll review a wide range of coverage options and how they work, including what pros and cons employers must consider before making a decision.

Takeaways from this blog post: Many small businesses may have trouble offering traditional health benefits due to increased annual costs and rigid participation requirements. There are affordable alternatives to group health insurance, such as health reimbursement arrangements (HRAs), that small businesses can use to provide employees with tax-free reimbursements for healthcare expenses. Taxable health stipends can also help employees with their medical costs. Small employers can also consider offering self-funded health insurance, which allows businesses to assume the financial risk of providing healthcare benefits to their employees and save on monthly payments for premium costs. However, it also carries the risk of larger-than-expected claims.

Learn how to use health reimbursement arrangements to your advantage in our guide

Do small businesses need to offer health insurance?

Before we dive into your options, let’s review why some small businesses need to offer affordable healthcare in the first place.

With so many businesses offering a traditional health insurance coverage option, it might seem that all employers must provide a group health plan. However, that isn’t the case .

Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees (FTEs) must provide an affordable benefit with minimum essential coverage (MEC) and minimum value to their employees. If they don’t, they’ll be subject to a tax penalty.

Even if the federal government doesn’t require you to offer health benefits to your employees, it can help you attract and retain top talent by improving employee satisfaction and morale.

If you must offer health coverage, it doesn’t have to be one of the traditional types of health insurance, like group plans. Offering a health reimbursement arrangement (HRA) is another way to give your employees access to healthcare. We’ll review common types of HRAs and other affordable options in the sections below.

Option 1: Small group health insurance

The traditional choice for most businesses is a group health insurance policy. Employers choose the group health plan for their organization and provide the coverage to employees and, potentially, employees’ spouses and dependents. Companies with between two and 50 full-time employees (or as many as 100 in some states) can purchase a small group health insurance for employees to increase satisfaction and retention.

Small employers offering small business health insurance pay a fixed premium for the policy. Sometimes, they pass on a portion of the premium cost to employees. Employees are responsible for copays and deductibles associated with the range of services they receive.

Businesses typically purchase health coverage through an insurance company, licensed agent, broker, or the public Small Business Health Options (SHOP) marketplace 1 . SHOP provides affordable health insurance and dental coverage, but you’ll need to ensure you qualify for a small business health insurance plan before you enroll.

Traditional group health insurance can be a good choice for small businesses because it's relatively easy to obtain, and most employees are already familiar with this type of plan.

However, employee premium prices with group medical plans can be costly. In 2023, employers contributed about $6,575 each year toward each employee’s single coverage premiums and about $17,393 per employee with family coverage premiums 2 . This is more expensive than many alternatives.

If your organization has fewer than 25 employees and you purchase a SHOP plan, you may qualify for the Small Business Health Care Tax Credit, which can provide some relief for rising premium costs. But there are other ways to offset the costs of group health insurance.

Pairing an integrated HRA with small group health insurance

If you want a group health insurance plan but also want to offset your employees' out-of-pocket healthcare costs, a group coverage HRA (GCHRA), also known as an integrated HRA, is a great supplement.

Because of their lower cost, many organizations offer high-deductible health plans (HDHPs). However, there’s a reason they’re less expensive: they cover less than other policies.

Small businesses can offer a GCHRA to mitigate some of that loss. With a GCHRA, you offer your employees a monthly allowance of tax-free money in addition to the group policy. Employees then pay for their out-of-pocket healthcare expenses, and the business reimburses them up to their allowance amount. While you can offer a GCHRA alongside any group health plan, employers will see the most cost savings with an HDHP.

Unlike health savings accounts (HSAs), unused HRA funds stay with you if the employee leaves your company.

Generally, employees use the HRA to cover expenses like copays, deductibles, routine care, doctor visits, and prescription drugs. All items listed in IRS Publication 502 and the CARES Act, other than insurance premiums, are available for reimbursement. Still, you can choose to limit this list or require an explanation of benefits (EOB) for out-of-pocket expenses.

Reimbursements made through a GCHRA are free of payroll tax for the business and its employees. They’re also free of annual income tax for employees.

In addition, businesses can structure their employee eligibility requirements as long as employees participate in the group policy.

Option 2: Individual coverage HRA (ICHRA)

Another health benefit plan option for small employers is the individual coverage HRA (ICHRA). An ICHRA is an alternative to traditional group health insurance you can leverage as your only health benefit or an option for employees who don’t qualify for your group health plan.

With an ICHRA, you can reimburse the cost of individual health insurance premiums and—if you choose to—any eligible out-of-pocket health costs. The ICHRA works well for employers of all sizes because it has no minimum or maximum participation requirements.

With an ICHRA, employers offer employees a monthly allowance of tax-free money. Employees then enroll in an individual health insurance policy, and the business reimburses them up to their allowance amount.

The ICHRA has no contribution limits, and depending on your benefit’s design, businesses can offer different allowance amounts based on unique employee classes . It’s only available to employees enrolled in individual coverage; employees enrolled in a spouse's group health insurance policy can't participate.

As long as the ICHRA is affordable, it can help organizations with 50 or more FTEs satisfy the ACA’s employer mandate.

Option 3: Qualified small employer HRA (QSEHRA)

A QSEHRA is a formal, IRS-approved benefit for employers with fewer than 50 FTEs. A QSEHRA works much like an ICHRA, with a few exceptions.

Unlike an ICHRA, employees don’t need qualifying individual health insurance to participate. Reimbursements will be free of income tax for employees if the employee has a policy that meets MEC, including a spouse’s or parent’s group plan.

Also, unlike the ICHRA, QSEHRAs come with annual allowance caps that employers can’t exceed. A QSEHRA does not have a minimum allowance requirement, so employers can set their own budget and define a monthly allowance for their employees as long as it doesn’t exceed the cap.

Employees can use the allowance to purchase a health policy from a public exchange , health insurance company, or broker and out-of-pocket medical expenses that best fit their needs.

QSEHRAs also offer value to small businesses in unique situations, such as those with employees included on a spouse’s or parent’s group policy or who have employees without insurance.

Option 4: Self-funded health insurance

If you’re looking to offer a group plan but find that working with an insurance carrier won’t give you the control and flexibility you want, you can consider offering a self-funded plan. Some small businesses choose self-insured plans to avoid expensive monthly premiums and other restrictions.

With a self-insurance arrangement, the business assumes the financial risk of providing healthcare benefits to employees. This means that rather than paying a fixed premium to an insurance company, the business pays for each employee's out-of-pocket claim as it arises.

Under this arrangement, you’ll draft plan documents that will outline eligibility requirements and covered benefits. Typically, an employer sets up a trust fund to earmark money the company and its employees contributed to pay these claims. Businesses may also pair the fund with a stop-loss insurance policy that limits the businesses’ potential risk.

Third-party administrators (TPAs) manage claims and other filings. Small businesses can save money with a self-funded health insurance plan, especially administrative costs. According to the Self-Insurance Educational Foundation 3 , cost savings in non-claims expenses compared to group health insurance can range from 10% to 25%.

However, self-insurance is risky, and larger-than-expected claims could put a small business out of business. For this reason, self-funded health insurance is more common among larger firms. The average size of larger companies with self-funded medical care is 300 to 400 employees.

Option 5: Health stipends

Finally, health stipends are another option for small businesses to help their employees with medical expenses.

Businesses can offer stipends upfront or through a reimbursement model similar to an HRA. With a reimbursement system, employers grant employees an allowance that they can use to cover their medical expenses, and employees receive that allowance after they incur an eligible expense.

Employers are in control of employee classes and allowance amounts. When an employee submits a request for reimbursement, employers simply approve the amount for qualifying expenses.

Health stipends can reimburse employees for health insurance premiums plus out-of-pocket costs relating to medical care. This can also include expenses incurred by your employees’ supplemental plans , like monthly premium amounts for vision coverage and dental insurance, or other healthcare costs major medical insurance doesn’t fully cover, like mental health services.

Stipends aren’t subject to as many regulations as an HRA or traditional group health insurance. It’s important to note that with a stipend, you can’t require proof of health insurance or receipts for medical expenses listed in IRS Publication 502 from employees. A stipend also doesn't satisfy the ACA’s employer mandate for organizations with 50 or more FTEs.

It’s also helpful to know that if you have employees who receive premium tax credits , their stipend allowance won’t interfere with their premium tax credit eligibility like a formal health benefit.

Stipends are also flexible in that they can even work alongside group health insurance or an HRA. However, the IRS considers stipends taxable income . While you won’t have to withhold any taxes for your employees, you’ll have to pay payroll taxes. Your employees will then pay income taxes when they file their tax returns.

It may seem tricky for small businesses to find affordable benefits, but luckily, several small employer health insurance options can provide comprehensive coverage. Whether you offer SHOP coverage, an HRA, a health stipend, or a self-funded plan, understanding your options is the first step to finding the right policy for you and your employees.

PeopleKeep’s benefits administration software makes offering perks easy. Schedule a call with our personalized benefits advisors to learn more about HRAs or stipends.

This blog article was originally published on January 6, 2020. It was last updated on January 8, 2024.

1. https://www.healthcare.gov/small-businesses/choose-and-enroll/shop-marketplace-overview/

2. https://www.kff.org/report-section/ehbs-2023-summary-of-findings/

3. http://www.siefonline.org/docs/self.pdf

Ready to enhance your employee benefits with PeopleKeep?

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Elizabeth Walker

Elizabeth Walker is a content marketing specialist at PeopleKeep. She has worked for the company since April 2021. Elizabeth has been a writer for more than 20 years and has written several poems and short stories, in addition to publishing two children’s books in 2019 and 2021. Her background as a musician and love of the arts continues to inspire her writing and strengthens her ability to be creative.

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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.

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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.

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Nick Soman

Hot Trends Transforming Small Business Health Insurance

In an ever-evolving healthcare landscape, small businesses are witnessing significant changes in how health insurance is structured, delivered, and managed. This comprehensive exploration delves into the current trends shaping small business health insurance, offering valuable insights for business owners.

Trend 1: Personalized Health Insurance Policies

Embracing Customization: The shift towards personalized health insurance policies is a key trend. Insurers are now using AI and machine learning to develop customized policies, taking into account the specific characteristics and needs of each small business. This technology allows for an analysis of various factors, including business size, industry-specific risks, employee health profiles, and past claims data, leading to more accurately tailored coverage options.

Advantages for SMEs: Customized policies offer significant advantages to small and medium-sized enterprises (SMEs). These tailored solutions can result in more effective coverage, potential cost savings, and greater flexibility to accommodate changes within the business. For instance, a small digital marketing firm with a young workforce might benefit from a policy that focuses more on mental health and wellness programs, reflective of the specific health needs and preferences of its employees.

Real-World Examples: Consider a small construction company that adopted a customized policy addressing the higher physical risks associated with the industry. This policy not only provided better coverage for work-related injuries but also resulted in lower premiums due to its targeted nature. Another example is a rapidly expanding e-commerce business that utilized a scalable health insurance plan, adapting seamlessly to its growing workforce and changing risk factors.

Trend 2: Digital Transformation in Insurance

Digitalization in Insurance: Digital transformation is reshaping the accessibility and management of health insurance for small businesses. The advent of mobile apps and online platforms has simplified policy comparison, management, and claims processing, making it easier for business owners to handle insurance matters efficiently.

Improving Efficiency and Flexibility: Digital tools are contributing to improved cost efficiency and greater policy flexibility. Small businesses can now manage their policies more dynamically, adjusting coverage as their business needs change, such as during peak seasons or periods of expansion.

Overcoming Digital Challenges: While digitalization offers many benefits, it also poses challenges like ensuring data privacy and user adaptation to new technologies. Advanced cybersecurity measures, such as encryption and secure cloud storage, and the development of user-friendly digital interfaces are being employed to address these issues. Furthermore, the introduction of IoT devices in commercial property insurance offers more precise risk assessment and policy customization.

Trend 3: Rise in Affordable Small Business Health Insurance Options

Affordability through Competition: The health insurance market for small businesses is becoming more competitive, leading to more affordable options. This is partly due to the emergence of insurtech startups, which are introducing innovative and cost-effective insurance solutions.

Government Influence and Policies: Government initiatives play a significant role in enhancing the affordability of health insurance for SMEs. Tax incentives and subsidies for small businesses that provide health insurance to their employees are examples of such supportive measures.

Innovative Insurance Models: New models of health insurance focused on affordability and accessibility are emerging. Cooperative insurance models, where small businesses band together to negotiate better rates, are becoming more popular. Additionally, integrated models that combine traditional insurance with health savings accounts (HSAs) offer both coverage and financial flexibility.

Integrating Key Questions and Insights

Importance of Health Insurance for Small Businesses: Offering health insurance is crucial for small businesses. It aids in attracting and retaining skilled employees, promotes a healthy workforce, and can be a key differentiator in a competitive market.

Strategies for Cost Reduction: To reduce insurance costs, small businesses can explore personalized policies, join cooperative insurance models, and utilize digital tools for efficient policy management.

Essential Insurance Types for Small Businesses: Apart from health insurance, small businesses typically need liability insurance, worker compensation insurance, and, depending on their operations, commercial auto insurance.

Dynamics of the SME Insurance Market: The SME insurance market is experiencing growth, driven by the demand for personalized and digitally accessible insurance solutions. Insurers are increasingly adopting data analytics for risk assessment and policy customization.

Addressing Insurance Needs and Challenges: Common insurance needs for businesses include liability, property, and worker compensation insurance. In 2023, challenges for insurers include adapting to digital transformations, managing rising claim costs, and complying with regulatory changes.

Addressing Relevant Questions

Why Health Insurance Matters for Small Businesses: Offering health insurance is vital for small businesses to attract and retain talent, ensure employee well-being, and maintain a competitive edge.

Cost-Reduction Strategies: Small businesses can reduce insurance costs by opting for personalized policies, participating in cooperative insurance models, and leveraging digital tools for efficient policy management.

Insurance Types for Small Businesses: Essential insurance types for small businesses include health, liability, worker compensation, and, depending on the business nature, commercial auto insurance.

SME Insurance Market Dynamics: The SME insurance market is growing, driven by the demand for personalized, digital solutions. Insurers are increasingly focusing on data-driven risk assessment and policy customization to cater to the unique needs of SMEs.

Common Insurance Needs and Challenges: Besides health insurance, businesses commonly require liability and worker compensation insurance. Challenges for insurers in 2023 include adapting to digital transformations, managing rising claim costs, and complying with regulatory changes.

In conclusion, the health insurance landscape for small businesses is witnessing a rapid transformation, influenced by trends in personalization, digitalization, and affordability. For small business owners, staying informed and adaptable is key to navigating these changes effectively. Embracing these emerging trends is essential for securing efficient and sustainable health insurance solutions, and ensuring the protection and well-being of businesses and employees. As the industry continues to evolve, proactive engagement and informed decision-making will be crucial for small businesses to leverage these trends to their advantage.

In this dynamic environment, small business owners must partner with knowledgeable insurance brokers who can provide tailored guidance and support. These professionals can help navigate the complex maze of options, ensuring that businesses choose policies that align with their specific needs and budget constraints. Furthermore, ongoing education and awareness about changes in health insurance regulations and market trends are vital. Subscribing to industry newsletters, attending webinars, and joining business forums can be beneficial in staying ahead of the curve. Ultimately, the ability of a small business to adapt its health insurance strategy to these evolving trends can be a critical factor in its overall success and sustainability. By being proactive and informed, small businesses can not only safeguard their financial health but also foster a more secure and supportive environment for their employees.

Beginner's guide to achieving fitness goals with realistic planning, personal assessment, and sustained motivation.

The 10 best insurance companies for small businesses

Running your own business can be satisfying with the perks of being your own boss, higher potential of success, and independence. But it also has its own challenges and stresses. One of the most significant challenges is protecting your business from liabilities or losses, which is why small business insurance is so important. Whether you’re the victim of a data breach or a customer is injured on your premises, the right insurance policy provides peace of mind and keeps your business operational.

To help you find the best insurance for your company, we evaluated 22 insurance companies based on their available coverages, customer service and financial stability ( view our full methodology ) and identified the top 10 small business insurers.

The 10 best small business insurers of February2024

  • Best overall: State Farm
  • Best for customer service: Nationwide
  • Best for financial stability: Chubb
  • Best for commercial auto coverage: Allstate
  • Best for coverage add-ons: The Hartford
  • Best for landlord coverage: American Family
  • Best for data breach or cyber insurance: Travelers
  • Best for policy discounts: Farmers
  • Best for home-based businesses: The Hanover
  • Best insurance marketplace: CoverHound

Whether you’re a solopreneur or you manage a growing team, running your own small businesses is a booming trend. The Economic Innovation Group reported that Americans submitted 5.5 million new business applications in 2023, an increase of 8% from the prior year. 

For new business owners and those who have been managing a company for years, it’s a good idea to shop around periodically and review your business insurance needs to ensure you have adequate coverage. To help you get started, here are our picks for the best small business insurers of 2024.

1. Best overall: State Farm

About: Founded in 1922, State Farm has been providing insurance coverage for over 100 years, and it has an outstanding reputation in the insurance industry. It has the highest-possible AM Best Financial Strength Rating of A++, signaling its financial stability and reliability, but it also stands out due to its innovative products, award-winning mobile app, online platform, and other tools. And it also has high scores for customer support. 

  • Am Best Rating: A++ (Superior) 
  • J.D. Power Customer Satisfaction Index Ranking: 2nd out of 13 issuers
  • Number of Small Business Products: 14 small business insurance products and add-ons
  • Customer support:  State Farm’s customer support is available via chat or phone, or you can contact a local agent; State Farm has over 19,000 agents in the U.S. 

Our verdict

State Farm is best for companies in a broad range of industries, from bakeries to plumbing. It is particularly useful for newer companies or business owners who are unsure of what kind of coverage they need; State Farm has several tools— including a simple online quiz— that can help you identify what insurance products and add-ons are right for your business. State Farm has comprehensive solutions, including coverage for liabilities, property, employees and even life insurance for the business owner. 

2. Best for Customer Service: Nationwide

About: Nationwide has been in operation since 1925, and it provides customers with a variety of insurance products, including both personal and business coverage options. For small business owners, Nationwide offers a broader-than-usual range of insurance solutions, including business liability coverage, workers’ compensation insurance and commercial umbrella policies. 

  • Am Best Rating:   A (Excellent) 
  • J.D. Power Customer Satisfaction Index Ranking: 1st out of 13 issuers
  • Number of Small Business Insurance Products: 14 
  • Customer support:  Nationwide allows business owners to get quotes online, or you can connect with an agent over the phone or in person. 

Our verdict 

Nationwide is best for small business owners with fewer than 100 employees and under $5 million in revenue because that’s the company’s requirements for its business owners policies (BOPs).  BOPs are packages of coverage that combine business liability, commercial property, business income and equipment breakdown insurance into one policy. 

Nationwide has an outstanding reputation for customer service, and you can reach customer support in several different ways. Additionally, the company has many optional add-ons you can use to customize your policy for added protection. 

3. Best for Financial Stability: Chubb

About: Chubb is a major insurer for both small and large businesses. It has a separate website and division for small businesses, with products specifically designed for small business owners, such as BOP and general liability coverage. 

  • AM Best rating: A++ (Superior) 
  • J.D. Power Customer Satisfaction Index Ranking: 9th out of 13 issuers
  • Number of small business insurance products: 7
  • Customer support:  You can contact Chubb customer support through a local agent or by phone.

As a business owner, you hope your business will be in operation for years to come, so you want to know your insurer will be able to protect you for the long-term. Chubb has the highest-possible AM Best rating of A++ (Superior), indicating that it should be able to honor any claims today and in the future.

4. Best for Commercial Auto: Allstate

About: Allstate is known for both its personal and business insurance, but it may be an especially appropriate choice for those who need commercial auto coverage. Allstate insures a wide variety of vehicles, including box trucks and service utility trucks. 

  • AM Best rating:   A+ (Superior)
  • J.D. Power Customer Satisfaction Index Ranking: 5th out of 13 issuers
  • Number of small business insurance products: 6
  • Customer support: Customer service is available through a local agent, phone or online chat. 

If you have a fleet of commercial vehicles for deliveries, moving inventory or shipping supplies, Allstate can provide necessary protection. Through Allstate, your vehicles will be protected with liability, collision, comprehensive and uninsured/underinsured motorist protection. Plus, you can also get rental car coverage to keep your business in operation if one of your vehicles is damaged in an accident 

5. Best Coverage Add-Ons: The Hartford  

About: The Hartford is a leading commercial insurance provider, offering both commercial business insurance and employee benefits. The Hartford has robust coverage options, including specialized insurance policies for a broad range of industries and optional add-ons you can use to customize your coverage. 

  • AM Best rating: A+ (Superior)
  • J.D. Power Customer Satisfaction Index Ranking: 10th out of 13 issuers
  • Number of small business insurance products: 17
  • Customer support:  The Hartford’s customer support is available through phone or local agent.

The Hartford is an insurance company best-suited for business owners in specialty industries, such as shipping companies that send goods overseas or those that operate in areas prone to flooding; the Hartford has commercial flood insurance and inland marine insurance options, which aren’t commonly found from all insurers. 

6. Best Landlord Coverage: American Family

About: American Family has been in operation since 1927, and it sells personal, business and farm and ranch policies. For landlords that rent out houses, condos or apartment buildings, American Family has unique options to protect your building structures, and offer liability coverage. 

  • J.D. Power Customer Satisfaction Index Ranking: 7th out of 13 issuers
  • Customer support:  You can reach American Family’s customer support through an agent or by phone. 

Getting adequate coverage as a landlord can be challenging, so American Family may be a valuable resource. Its complete coverage option for landlords provides comprehensive insurance, and includes an extensive loss control program to reduce potential losses in the future. 

7. Best for Data Breach or Cyber Insurance: Travelers

About: Travelers has a longstanding history and presence globally; it operates offices and has agents in the U.S., Canada, the United Kingdom and Ireland. Besides essential business insurance products like business owner’s policies and general liability, it also has specialized options for a range of industries, including companies who do most of their business online and need cyber insurance. 

  • AM Best rating: A++ (Superior)
  • J.D. Power Customer Satisfaction Index Ranking: 12th out of 13 issuers
  • Number of small business insurance products: 14 
  • Customer support:  Travelers insurance policies are sold through independent agents, and the agent is who you can go to with any questions about coverage.

If you’re part of the 29% of businesses that conduct business online, Travelers provides cyber insurance coverage and added features for digital businesses.  In addition to cyber insurance, it also provides customers with cyber security training modules, risk assessment tools and other resources to help you protect your business. 

8. Best for Policy Discounts: Farmers

About: Farmers Insurance can trace its history to 1928, and it offers a variety of business insurance products for small businesses. And it has a larger-than-usual number of discount options which can make your small business insurance policy more affordable, including: 

Corporation discount: If your business is a corporation, you can save 15% on your premiums. 

Vehicle safety discount: If you have commercial vehicles with safety features like lane departure notifications, you may qualify for added savings. 

Multi-policy discounts:  If you purchase multiple insurance products, such as BOPs, worker’s compensation or personal auto or homeowners insurance, you may qualify for a reduction in your premiums. 

  • AM Best rating: A (Excellent)
  • J.D. Power Customer Satisfaction Index Ranking: 4th out of 13 issuers
  • Customer support: Farmers’ customer support is available via chat, phone or agent. You can reach customer service Monday through Friday, from 7:00 a.m. through 11:00 p.m. CST, and Saturday and Sunday from 8:00 a.m. through 8:00 p.m. CST. 

Small business owners looking to save money may benefit from Farmers’ small business insurance. Particularly if you have a corporation, need to purchase a BOP or have commercial auto vehicles, Farmers’ discounts can be especially valuable. 

9. Best for Home-Based Businesses: The Hanover

About: Founded in 1852, The Hanover is one of the oldest insurance companies on our list. It has coverage options for both personal and business insurance. The company has several specialized small business insurance products, including four separate packages for those who run home-based businesses. 

  • AM Best Rating: A (Excellent)
  • J.D. Power Customer Satisfaction Index Ranking: Not rated 
  • Number of small business products: 12
  • Customer support:  Customer support is available via phone or agent. 

If you have a home-based business, such as listing your property on homeshare sites, tutoring or graphic design, The Hanover could be a good match. It has several packages designed for the unique needs of home-based businesses of different sizes, ensuring you have protection for your business, inventory, equipment and any clients. 

10. Best Insurance Marketplace: CoverHound

About: CoverHound is an insurance marketplace that connects users to personal and business insurance policies. It sells policies to residents of all 50 states, and it partners with major insurers like Chubb, Liberty Mutual and Nationwide. 

  • Number of small business products: 13
  • Number of partner carriers: 7
  • Customer support: You can reach CoverHound’s customer service team via email, phone or secure message. Customer support is available Monday through Friday, from 10:00 a.m. through 8:00 p.m. EST. 

CoverHound is a good match for people looking to purchase coverage quickly and streamline their research efforts; you can get quotes from several major insurer carriers at once. Once you find a match you like, you can buy a policy online, and it will go into effect in as little as 24 hours.

What to know about Small Business Insurance  

As a business owner, you likely need some kind of small business insurance. But what kind of coverage depends on the type of business you run, its size and its revenue. 

The most common small business insurance products include: 

  • Business owner’s policy (BOP): A BOP is a basic package of business insurance products combined into one policy. It combines essentials like property insurance, liability coverage and business interruption insurance. 
  • Commercial auto: If you make deliveries, transport clients or use vehicles for other business operations, you’ll likely need a commercial car insurance policy. 
  • Liability insurance: Liability insurance protects you against lawsuits resulting from bodily or personal injuries or property damage incurred by clients or vendors in dealing with your business.  
  • Property insurance: Property insurance is a must if you have valuable equipment, supplies or a physical business space; it protects you from losses that may occur due to storm damage, fires or theft. 
  • Workers compensation : If you have employees, you’ll likely need to get workers’ compensation coverage to protect your employees in cases of work-related injuries or illnesses. 
  • Errors and omissions (professional liability) insurance: Businesses that give advice, such as financial planners, or provide physical care need professional liability insurance. It covers your legal expenses and other fees if you’re sued due to negligence or a failure to provide services. 

Besides those basic coverage options, you can often customize your policy by adding additional coverages to your policy. Common add-ons include: 

  • Cyber liability: If you do most of your business online, handle sensitive information or store customer data like email dresses or payment information, you’ll need a cyber liability policy. These policies provide protection in cases of hacks or data breaches that compromise sensitive information. 
  • Business interruption insurance: If your business operations are interrupted and you lose revenue for a covered reason, such as building damage after a fire, business interruption coverage provides you with some compensation. 

How to choose a small business insurance company

To choose a small business insurer, consider the following factors: 

  • Company size: Some insurers specialize in policies for freelancers or solopreneurs, while others may offer policies to businesses with 20 to 100 employees. Your company size — and how much you expect it to grow — will affect which insurer is a good fit. 
  • Equipment and buildings: If your business operations involve a brick-and-mortar store or warehouse, equipment, vehicles and several employees, you’ll need a much more robust policy than someone operating a small, online business from their home office. Depending on your company’s operations, you may even need specialized coverage add-ons, such as cyber insurance or commercial auto coverage. 
  • Risks: Businesses vary in risk based on their industry and business model. For example, an academic tutoring business will likely have less of a liability risk than a roofing company. Think about what risks your company faces, such as what kind of equipment you work with, how often clients or customers will come onto your property and if you handle sensitive information. 
  • Cost: Small business insurance can vary significantly in cost between companies, so it’s a good idea to get quotes from several leading small business insurers to find the best deal. 

If you’re still unsure about which types of insurance products are right for you, take a look at our comprehensive guide to small business insurance .

Frequently asked questions

What does business insurance cover.

Business insurance coverages and exclusions vary by policy; a basic BOP covers the following: 

  • Property insurance for the business’ buildings and equipment
  • Business interruption insurance for the loss of earnings that may occur from fires, storm damage or other major disasters
  • General liability protection that covers your legal responsibility if another party is injured or experiences damages from your business

What is general liability insurance? 

General liability protects you from losses related to injuries, property damage or misleading advertising. If you have clients who visit your business premises — and therefore are at risk of becoming hurt in an accident on your property — general liability coverage is a necessity. 

How much does business insurance cost? 

The cost of coverage depends on a wide range of factors, including your company size, industry and location. In general, you should expect to pay anywhere from $500 to $5,000 per year for a basic business owners policy (BOP). 

Our methodology  

We reviewed 22 insurance providers and insurance comparison marketplaces to help you find the best small business insurer for your unique needs. To evaluate the companies and come down with our final list, we ranked the companies based on the following factors: 

  • Financial stability: We looked for companies with AM Best Financial Strength Ratings of A (Excellent) or better. 
  • Availability and eligibility: Preference was given to companies that issue policies in the majority of the U.S. states., and that insured companies with one to 100 employees. 
  • Product options: We looked for companies that offered at least 10 small business insurance products, including essentials like BOPs, commercial liability and business property coverage. 
  • J.D. Power ranking: Companies with scores above the study average were given extra weight. 
  • Online quote availability: Companies that allow customers to get small business insurance quotes were given additional consideration. 
  • Complaint index: We reviewed the complaint index, number of commercial liability complaints and types of complaints submitted about each company to the National Association of Insurance Commissioners (NAIC). 
  • Potential discounts: We looked for companies that offered at least one discount option for small business insurance customers. 

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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.

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How to Choose a Health Insurance Plan for Your Small Business

A s a small business owner, you're no doubt aware that it's important to not only attract solid talent, but do what you can to retain talented employees. And a good way to do that is to make sure you're offering a nice benefits package. That package might include a retirement savings plan you help contribute to, paid vacation time, and health insurance.

Now, you should know that if you run a business with fewer than 50 full-time employees, you're technically not required to provide health insurance. But that doesn't mean you shouldn't.

Healthcare can be an astronomical expense in the absence of insurance. And even if you're willing to raise salaries in lieu of providing insurance, you may find that prospective employees are turned off by the prospect of having to go out and purchase health coverage themselves.

Of course, choosing a health plan for your business isn't exactly an easy thing to do. Here are some tips for navigating the process.

1. Decide how much you're willing and able to spend

Within the realm of small business health insurance, there's a range of plans. As you might imagine, costlier plans tend to offer superior coverage, while those that are less expensive don't offer as much to participants.

It's important to be realistic about how much you can afford to spend on health insurance. As a smaller operation, you can't benefit from the bulk rates a company with 12,000 employees might snag. So you'll need to take a look at your banking records and see what's realistic, keeping in mind that you'll likely be picking up a large share of those premium costs.

2. Figure out if you want a high-deductible insurance plan

High-deductible health insurance plans can be burdensome for participants -- especially those with family members who tend to get sick often. But the costs for these plans can be more reasonable, as plans with higher deductibles tend to come with lower premiums. That's something to keep in mind if you'll be covering those premiums at 100%.

Also, if you offer a high-deductible plan, it may allow you to offer a health savings account in conjunction with that plan. That could make it easier for your employees to cover their medical costs while reaping tax savings.

3. Consider partnering up with an insurance broker

As a small business owner, you may not be all that well-versed on health insurance options. But it's the job of an insurance broker to walk you through your options and do research on your behalf, so you can focus on running your business. Not only might an insurance broker help you find the right plan, but they can generally help you get set up so you don't find yourself lost in a sea of paperwork.

Whether a health insurance plan is something you're looking to offer because it's a requirement or because it's a benefit you want to provide, it's important to find the best plan for your company. Take your time in making that decision so you and your employees wind up happy with it.

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How to Choose a Health Insurance Plan for Your Small Business

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Contractor Insurance: What It Is, How to Get It

Rosalie Murphy

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Contractor insurance protects your construction business in case of lawsuits, on-the-job injuries, damage to your equipment and more. You may be required, either by law or the company that hired you, to have this coverage.

Most contractors need several business insurance policies to protect against these different risks, but you can usually buy them together from the same insurance company. Here’s how to find the best contractor insurance for you.

Are you a contractor but don’t work in the construction industry? Check out our guide to independent contractor insurance for more information.

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What is contractor insurance?

Contractor insurance is usually a package of insurance policies that protects your business from financial losses in case someone files a claim against you.

Most contractors need general liability insurance and inland marine insurance. Whether you need other types of coverage depends on how big your company is, what’s required in your state and what kind of work you do, among other factors.

Contractor insurance is important in situations like:

You accidentally cause damage to a customer’s home or belongings while repairing one of their appliances.

Your materials are stolen out of your truck.

A customer accuses you of faulty work and files a lawsuit.

What does contractor insurance cover?

Contractor insurance can include several different types of business insurance . Your construction business might need:

Your contract may also require you to purchase a surety bond . Surety bonds act as promises that, if you can't complete the work you were hired for, the bondholder — usually an insurance company — will make whoever hired you financially whole.

How much does contractor insurance cost?

Median costs for contractor insurance can add up to as much as $595 per month, according to business insurance marketplace Insureon. That estimate is based upon purchasing multiple individual policies, though, and you may not need all that coverage.

Insureon reports the following median costs of insurance policies for contractors:

Less than $70 per month for general liability insurance.

$275 per month for workers’ compensation insurance.

$150 per month for commercial auto insurance.

Less than $15 per month for contractors’ tools and equipment insurance, which is a kind of inland marine insurance.

$85 per month for professional liability insurance.

How much business insurance costs can vary widely depending on how big your business is, where you’re located and whether you’ve filed insurance claims in the past. Policies with higher limits or lower deductibles are usually more expensive.

There’s variation within the construction industry, too. For example, roofers may pay twice as much for general liability insurance as plumbers and five times as much as sheet metal contractors, according to Insureon. That’s because roofing comes with higher risks — both for injury and for causing damage to customer property.

Insurance companies tell you how much contractor insurance will cost when they give you a quote. NerdWallet recommends comparing several quotes to find the best coverage for your business at the best price.

» MORE: How to get construction business insurance

Where can you get contractor insurance?

Lots of insurance companies sell the policies that contractors need. Which company fits your needs best depends on how quickly you need to shop.

If you need coverage right away, consider:

Thimble . If you’re the person hiring other contractors, you can use Thimble to make sure they have insurance that complies with your requirements. And if you’re the contractor who needs coverage, you can purchase a temporary or ongoing policy through Thimble.

Next Insurance . If you want coverage tailored to your specialty, Next sells insurance packages for everyone from drywall contractors to welders. Once you buy a policy, you can share certificates of insurance digitally with clients and contractors who request them.

Both Thimble and Next sell insurance entirely online. You can get a quote online by entering information about your business. If you decide to buy the quoted policy, you can do so online right away.

If you have more time and want hands-on support, consider:

Nationwide . If you want to customize your policy — like setting a per-project policy limit or adding pollution coverage, which is usually excluded from commercial general liability policies — Nationwide’s contractor insurance may be a good fit. Nationwide also sells construction bonds.

The Hartford . If you want a business owner’s policy, The Hartford offers one with lots of add-ons tailored to contractors — like coverage for your tools and equipment and protection against damage to property you’re installing.

Nationwide and The Hartford’s contractor insurance policies are sold through independent agents. A local insurance agent can help you figure out what policies you need and compare quotes from these providers and others.

Nationwide, The Hartford and Next are all included in NerdWallet’s picks for the best construction insurance companies .

On a similar note...

Healthcare in Moscow

health insurance for small construction business

This guide was written prior to Russia's 2022 invasion of Ukraine and is therefore not reflective of the current situation. Travel to Russia is currently not advisable due to the area's volatile political situation.

Healthcare in Moscow is organised by the Moscow Health Department. While public healthcare facilities are available, most expats seek out private healthcare at international medical centres. Expats are advised to take out private medical insurance if it is not provided to them by their company.

Subsidised healthcare is provided to everyone living in the country, paid for by the state and the mandatory health insurance system. That said, professionals in the state system are likely to speak little to no English. 

There are several private medical centres in Moscow where English is spoken and where the healthcare is on par with expat standards. These clinics are generally very expensive, so it is highly recommended that expats take out private medical insurance to cover medical costs in Moscow. Most insurance coverage plans will also include evacuation cover for emergencies or life-threatening situations. 

Recommended hospitals in Moscow

Alliance medicale.

www.alliancemedicale.ru Address: Kutuzovsky Ave, 1/7

Intermed Center American Clinic

www.en.intac.ru Address:  4 Monetchikovsky Lane, 1/6, Building 3

International Clinic MEDSI

www.medsi.ru Address:  26 Prospekt Mira, Building 6

European Medical Center

www.emcmos.ru Address:   5 Spiridon'yevskiy Pereulok, Building 1

Further reading

►For more on the Russian healthcare system see our Healthcare in Russia page.

Expat Interviews " The standard is high, but health insurance is essential − both international and local cover tend to be adequate and similar for routine things." Read more about Stephen, a British expat, and his  experience living in Moscow . 

Are you an expat living in Moscow?

Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Moscow. Please contact us if you'd like to contribute.

Expat Health Insurance

Cigna Global Health Insurance. Medical insurance specifically designed for expats. With Cigna, you won't have to rely on foreign public health care systems, which may not meet your needs. Cigna allows you to speak to a doctor on demand, for consultations or instant advice, wherever you are in the world. They also offer full cancer care across all levels of cover, and settle the cost of treatments directly with the provider. Get a quote from Cigna Global
Aetna Aetna International, offering comprehensive global medical coverage, has a network of 1.3 million medical providers worldwide. You will have the flexibility to choose from six areas of coverage, including worldwide, multiple levels of benefits to choose from, plus various optional benefits to meet your needs. Get your free no-obligation quotes now!

Moving Internationally?

International Movers. Get Quotes. Compare Prices. Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget. Get your free no-obligation quotes from select removal companies now!
Free Moving Quotes ReloAdvisor is an independent online quote service for international moves. They work with hundreds of qualified international moving and relocation companies to match your individual requirements. Get up to 5 free quotes from moving companies that match your needs. Get your free no-obligation quotes now!

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Small towns in Idaho are working to expand intelligently to accommodate increasing populace

By Ken Levy and Marc Lutz // February 16, 2024 //

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Homes are in various stages of construction in Star just off New Hope Road. Like other small towns throughout Idaho, Star is seeing large growth in its population. (PHOTOS: Marc Lutz, IBR)

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IMAGES

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  26. Moscow Office

    Monday - Friday: 8:00 am-5:00 pm. Saturday - Sunday: Closed. Closed on holidays. Some services are only available by phone. Please call first before going to an office. Services Phone Numbers. Child and Family Services. 208-882-0670. View Details.