Best Small Business Insurance in Washington D.C.
The District of Columbia currently requires businesses with employees to carry workers’ compensation insurance. In addition, businesses that own and operate cars, trucks and other vehicles on public roads are required to be covered by automotive liability insurance.
Regardless of the district’s requirements for insurance, it’s important that you secure business insurance that fits your business’s needs.
In this review, we’ll explore the best small business insurance in Washington D.C. and share what makes them the right choice.
Recommended: Next Insurance offers dedicated small business insurance to Washington D.C. small businesses.
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Next Insurance
4.75/5 |
BEST FOR SMALL BUSINESS OWNERS
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Tivly
4.5/5 |
BEST OVERALL INSURANCE MARKETPLACE
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The Hartford
4/5 |
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Hiscox
4.25/5 |
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CNA
3.75/5 |
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We narrowed our search down to our top 5 insurance carriers in Washington D.C. and then closely analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited to.
We also identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.
Our Best Washington D.C. Business Insurance Providers for 2023:
- Next Insurance: Best online business insurance with fast and simple sign-up.
- Tivly: Best small business insurance marketplace.
- The Hartford: Offers specialized coverage and custom packages.
- Hiscox: Good for micro businesses.
- CNA: Great for tech companies.
1. Next Insurance: Best Insurance for Small Business
Next Insurance has streamlined the process of getting business insurance coverage completely online and in just a few minutes. Named one of the “Top 50 Disruptors of 2022” by CNBC, Next Insurance uses AI and machine learning to provide the best small business liability insurance options catered to unique business needs.
We consider Next to be the best business insurance company for business owners looking to get fast, affordable, quality coverage without walking into an agency or sifting through aggressive sales pitches. Next Insurance not only offers the most common types of small business insurance but also offers specific insurance products by industry in each state, instant digital certificates of insurance (COI) downloads, and more to make the process easier than ever. Using their user-friendly mobile app, you can easily pay premiums, access policy documents, and even file liability claims on the go with rapid response times.
Due to their focus on small businesses exclusively, we found their rates to be slightly lower on average than larger insurance providers.
Next Insurance Featured Coverages
- General Liability Insurance
- Business Owner’s Policies (BOPs)
- Commercial Auto Insurance
- Commercial Property Insurance
- Professional Liability Coverage (Errors and Omissions Insurance)
- Hired & Non-Owned Auto Insurance
- Liquor Liability Insurance
- Tools & Equipment Insurance
- Workers’ Compensation Insurance
PROS
- Same-day insurance coverage
- iOS/Android app for easy access to your COI, to file claims, and to change policy type
- Get a quote and purchase a policy in less than 10 minutes
- Easy-to-use scheduler so your insurance can start on a precise date
- Competitive premiums designed for small businesses
- Customizable policies
- Convenient online chat support
CONS
- No brick-and-mortar locations/branches for in-person transactions
- Some specialized types of insurance coverage, like key person insurance, are not available
Find the Right Coverage for Your Business
Next Insurance is a fully online provider dedicated to low-cost, high-protection coverage for small businesses. Get a quote instantly.
2. Tivly: Best Business Insurance Marketplace
If you’re looking for a marketplace with the best quotes for business insurance, Tivly takes the gold. Tivly has gathered a wide range of small business insurance companies in one place to help you narrow down the search for a policy that meets your business's unique needs. Small business owners that may be considered high risk can find what they are looking for with Tivly.
It's important to note that Tivly is an insurance marketplace instead of an individual provider. The goal of this company is to make your search more simple by showing you the top business insurance policies for your situation and streamlining the signup process. By submitting one online form, you'll receive multiple quotes for commercial insurance products from several competitors, most of whom are on this list. You'll also get a quick rundown of each policy so that you know exactly what you're signing up for.
Tivly Featured Coverages
- General Liability Insurance
- Lost Income Insurance (Business Interruption Insurance)
- Business Hazard Insurance
- Commercial Property Insurance
- Business Owner’s Policy
- Commercial Auto Insurance
- Workers’ Compensation Insurance
- Commercial Umbrella Insurance
- Professional Liability Insurance
PROS
- Great customer service
- Live and rapid phone support from 8:00 a.m.–8:00 p.m. Monday to Saturday
- Easy-to-navigate website
- Offers a lot of information about their different insurance options
- Works with numerous partners to provide coverage for various types of businesses
- Great pricing options
CONS
- Policies are issued by other insurance providers, not Tivly.
Your Business Needs Insurance
Find out which policies your business needs and how much it will cost by getting a free quote.
3. The Hartford: Good for Specialized Insurance
The Hartford is a great insurance solution for businesses that need specialized insurance coverage. Though the insurance may not cover every type, as services like Tivly do, The Hartford offers customized insurance packages with only the coverage you need, which can save you hundreds long-term. The Hartford has served millions of small businesses for over 200 years while maintaining a great reputation for delivering some of the best specialized commercial insurance coverages and rates.
The Hartford Featured Coverages
- Business Owner’s Policy
- Commercial Auto Insurance
- General Liability Insurance
- Commercial Property Insurance
- Lost Business Income Insurance
- Business Interruption Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Cyber Insurance
- Commercial Umbrella Insurance
- Employment Practices Liability Insurance
PROS
- Long history with an A+ financial strength rating through A.M. Best
- Many small business insurance types
- Named "World’s Most Ethical Company" by Ethisphere Institute
- BOP insurance combines general liability and business property insurance together
- Easy online quotes
CONS
- Not a good option if you prefer an industry-specific insurer
- Poor J.D. Power's "Small Commercial Insurance Study" reviews
- Complaints through the National Association of Insurance Commissioners.
Read our full The Hartford Small Business Insurance review.
4. Hiscox: Great for Micro-Businesses
Hiscox is the best small business insurer for micro-businesses since they have helped thousands of small and micro-businesses get insured. Hiscox has a dedicated team of small business professionals who focus only on helping small businesses get the right types of coverage at the best prices.
Hiscox Featured Coverages
- General Liability Coverage
- Professional Liability Coverage
- Business Owner’s Policy
- Short-Term Insurance Policies
- Cyber Insurance
- Workers' Compensation Insurance
- Coverage for 180+ professional services
Read our full Hiscox Small Business Insurance review.
5. CNA: Good for Tech Companies
CNA offers the best insurance for online businesses, offering cyber risk insurance solutions. If your company deals in personal or financial information or may be at risk of data breaches or online attacks, CNA offers comprehensive cyber liability policies at the best prices. We like CNA because they offer three cyber risk insurance options, as well as other niche insurance products not found with other providers.
CNA Featured Coverages
- Cyber Risk Policies
- Commercial Auto Insurance
- General Liability Policies
- Equipment Breakdown Insurance
- Inland Marine Policies
- Professional Liability and Management Insurance
- Ocean Marine Insurance
- Business Property Coverage
- Surety Insurance
- Umbrella and Excess Casualty Insurance
- Workers’ Compensation Coverage
PROS
- Specializes in business insurance
- Covers small-, mid-, and large-sized businesses
- Covers over 180 niche businesses
- Eighth largest business insurance provider in the US
- High ratings from all major insurance rating agencies
- 24-hour claims assistance
CONS
- The online quote generator doesn’t always work
- A small number of customer reviews
Read our full CNA Small Business Insurance review.
Small Business Insurance Review Methodology
Choosing the best business insurance comes down to five things:
- The type of business you have
- The type of coverage you need
- Which provider offers the best value
- Easy-to-navigate simple claims process
- Great customer service
First, we narrowed it down to the five best small business insurance providers, most of whom offer online quotes so that you can get coverage and a certificate of insurance for your business today.
Then, we analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited for small business owners.
Finally, we've identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.
Washington D.C. Business Insurance Requirements and Resources
Washington D.C. Insurance Requirements
Employers in Washington D.C. must carry workers’ compensation insurance, even if they have just one employee. Otherwise, they must have the approval of the District’s Office of Workers’ Compensation to be self-insured. Also, a business with vehicles must only use and operate those vehicles on public roads if the vehicles carry auto liability insurance with the minimum coverage prescribed by District law.
The District’s Compulsory/No-Fault Motor Vehicle Insurance Act also requires every person applying for vehicle registration or a reciprocity sticker in the District to have valid vehicle liability insurance.
Commercial Auto Insurance
Automotive liability insurance is required by any vehicle to be operated on the District of Columbia’s public roads. Such liability insurance must have a minimum coverage of 25-50-10:
§ 31–2403: Compulsory/No-Fault Motor Vehicle Insurance
Each owner of a motor vehicle which is required to be registered or for which a reciprocity sticker is required in the District shall maintain insurance required by § 31-2406. This insurance shall be in effect continuously during the motor vehicle’s period of registration or reciprocity.
§ 31–2406: Availability of required and optional insurance and benefits
Each insurer selling motor vehicle insurance in the District shall be required to offer insurance which shall provide … the minimum amount of … liability insurance … [of] $10,000 for property damage in any 1 accident … the minimum amount of 3rd-party personal liability coverage … shall be $25,000 per person injured in any 1 accident and $50,000 for all persons injured in any 1 accident.
Workers’ Compensation Insurance
District law requires all businesses with employees to carry workers’ compensation insurance. There is no threshold. The requirement is triggered by having just one employee:
§ 32–1503: Workers’ Compensation - Coverage
(b) Every employer subject to this [law] shall be liable for compensation for injury or death without regard to fault as a cause of the injury or death.
§ 32–1534: Security for payment of compensation
(a) Every employer shall secure the payment of compensation under this [law] by insuring and keeping insured the payment of such compensation with … any person or fund, while such person or fund is authorized: (A) under the laws of the United States, the District of Columbia, or of any state, to insure workers’ compensation; and (B) by the Mayor to insure payment of compensation under this [law]; or … by furnishing satisfactory proof to the Mayor of his financial ability to pay such compensation and receiving an authorization from the Mayor to pay such compensation directly.
§ 32–1501: Definitions
(10) “Employer” includes any individual, firm, association, or corporation, or receiver, or trustee of the same, or the legal representative of a deceased employer, using the service of another for pay within the District of Columbia.
Data Breach Insurance
Washington D.C.’s data breach notification law imposes a duty on a business that owns or handles data that includes personal information to notify the persons if the security of the data has been breached.
This obligation to inform DC residents their data has been compromised raises the likelihood those residents will seek legal redress. Unless a business can prove it took reasonable steps to protect the data, it could face ruinous claims for compensation. DC businesses will mitigate such adverse effects, however, by carrying data breach insurance to cover legal fees and possible compensation costs.
§ 28–3852: Notification of security breach
Any person or entity who conducts business in the District of Columbia, and who, in the course of such business, owns or licenses computerized or other electronic data that includes personal information, and who discovers a breach of the security of the system, shall promptly notify any District of Columbia resident whose personal information was included in the breach.
Any person or entity who maintains, handles, or otherwise possesses computerized or other electronic data that includes personal information that the person or entity does not own shall notify the owner or licensee of the information of any breach of the security of the system in the most expedient time possible following discovery.
Washington D.C. Insurance Resources
FAQs - Office of Workers’ Compensation
Workers' Compensation - Department of Employment Services
Department of Motor Vehicles - Vehicle Insurance
Workers' Compensation Program - DC Office of Risk Management
Executive Office of the Mayor
Types of Washington D.C. Business Insurance
General Liability Insurance
The vast majority of Washington D.C. companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries.
General liability insurance is one of the most important types of business insurance your company can purchase.
Business Owner’s Policy
A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.
Commercial Auto Insurance
You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.
Workers’ Compensation Insurance
Washington D.C. requires businesses with any full- or part-time employees to carry workers’ compensation insurance. The threshold is one employee. It’s a good idea to subscribe to such insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.
Employee Health/Life/Disability Insurance
Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate Washington D.C. insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.
Professional Liability Insurance
Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes.
Professional liability insurance includes errors and omissions (E&O) insurance.
Data Breach Insurance
If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases.
Cyber Liability Insurance
Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.
Commercial Crime Insurance
Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.
Fiduciary Liability Insurance
Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly.
Third parties like out-of-company consultants and benefit plan administrators are usually not protected.
Directors and Officers Insurance
Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.
Executive Risk Coverage
Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.
FAQ
Do I need business insurance in Washington D.C.?
Yes. In Washington DC, it is essential to have business insurance. Any business operating in the District will be exposed to a variety of risks, which should be guarded against with the appropriate policy. Major risks include fraud, particularly fraud resulting from data breaches, and injury or damage sustained by customers or members of the public that occurred through employee negligence.
Moreover, perils such as fire or flood damage can ruin a business. A policy that offers compensation may be the only way to save a business if such hazards materialize.
How much does business insurance cost in Washington D.C.?
Business insurance costs in Washington DC vary according to the type of business, the size of the business, and its location.
A construction business will find that its insurance premiums are much higher than those of an accounting office. A business with dozens of employees or many vehicles will have greater insurance costs than the mom-and-pop down the road. And a standalone downtown business will probably have to pay more for liability insurance than one located in a mall with security.
A business owner’s policy costs $100–$300 a month. Workers’ comp in the District costs around $600 per employee a year, while commercial auto insurance can cost around $150 a month.
Why do I need small business insurance?
Some professions or business contracts require that you have business insurance. If this doesn’t apply to you, insurance is still a critical component of your business portfolio. Your policy is there to protect your company and its assets from unexpected lawsuits and claims.
What kind of business insurance do I need?
The type of business insurance you need depends upon the products or services you offer and how your business is structured. Every business should have a general liability policy. If you have business tools, equipment, or vehicles, you’ll want to consider covering those assets as well.
Do I need insurance for my LLC in Washington D.C.?
In short, yes. While incorporating as an LLC in Washington D.C. protects your personal assets, your business assets are still at risk in the event of a claim or lawsuit.