Best Small Business Insurance in Washington
The State of Washington currently requires businesses to have both workers’ compensation insurance (if they have employees) and commercial auto insurance (if they have vehicles used for business purposes).
Regardless of the state’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 and share what makes them the right choice.
Recommended: Next Insurance offers dedicated small business insurance to Washington 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 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 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 Business Insurance Requirements and Resources
Washington Insurance Requirements
Washington requires all owners of motor vehicles to have automotive liability insurance on those vehicles. Businesses with any employees are also required to carry workers’ compensation insurance.
Commercial Auto Insurance
To operate a motor vehicle in Washington State requires that that vehicle carry automotive liability insurance, although the requirement is worded in a way that suggests it is the driver rather than the vehicle that is insured. But automotive insurance covers a vehicle, and may cover any driver of that vehicle who drives with the owner’s consent. Here is the relevant section:
46.30.020: Liability insurance or other financial responsibility required
(1)(a) No person may operate a motor vehicle … in this state unless the person is insured under a motor vehicle liability policy with liability limits of at least the amounts provided in RCW 46.29.090.
To meet legal requirements, an insurance policy must provide, at a minimum, 25-50-10 coverage, i.e. at least $25,000 for bodily injury or death of one person, with a limit of $50,000 per accident, and at least $10,000 for damage or destruction of property.
46.29.090: Liability Limits
(1) No policy … is effective … unless issued by an insurance company … authorized to do business in this state … nor unless such policy … is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than twenty-five thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, to a limit of not less than fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident, and if the accident has resulted in injury to, or destruction of, property to a limit of not less than ten thousand dollars because of injury to or destruction of property of others in any one accident.
Workers’ Compensation Insurance
Washington State does not allow private workers' compensation coverage. Instead, an employer must purchase coverage from the state’s Department of Labor & Industries or be certified as self-insured. The Department of Labor & Industries (LnI), Insurance Services Division, manages the Washington State Fund from which compensation is paid.
To obtain workers’ compensation coverage through the Washington State Fund, an employer must open an account by completing and returning a Business License Application. A certificate of insurance coverage is then issued, which must be displayed conspicuously in the workplace.
51.04.120: Certificate of coverage required
Any employer other than a self-insurer … shall, under such rules as the department shall prescribe, apply for and obtain from the department a certificate of coverage.
Data Breach Insurance
Washington State’s data breach notification provisions place an obligation on businesses that own, license, maintain or possess data that may include personal information to notify those persons if their data has been breached.
This statutory obligation to inform residents of the state if their data is compromised exposes businesses to the risk of facing claims of negligence in civil court. Such claims, particularly if they emanate from many individuals, can deplete a business’ financial resources since the business will have legal fees and may have to pay compensation. Accordingly, Washington State businesses should consider carrying data breach insurance to mitigate the effects of such an occurrence.
19.255.010: Personal information—Notice of security breaches
Any person or business that conducts business in this state and that owns or licenses data that includes personal information shall disclose any breach of the security of the system to any resident of this state whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person and the personal information was not secured. Notice is not required if the breach of the security of the system is not reasonably likely to subject consumers to a risk of harm. The breach of secured personal information must be disclosed if the information acquired and accessed is not secured during a security breach or if the confidential process, encryption key, or other means to decipher the secured information was acquired by an unauthorized person.
Any person or business that maintains or possesses data that may include personal information that the person or business does not own or license shall notify the owner or licensee of the information of any breach of the security of the data immediately following discovery, if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person
Washington Insurance Resources
Employers’ Guide to Workers’ Compensation Insurance in Washington State
Washington State Department of Licensing - Mandatory Insurance
Washington State Department of Labor & Industries
Washington State Department of Commerce - Small Business Services
Washington Secretary of State - Corporations & Charities
Types of Washington Business Insurance
General Liability Insurance
The vast majority of Washington 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 requires all businesses with one or more full or part-time employees to carry workers’ compensation 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 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?
Yes. Every Washington business needs insurance to guard against the risks to which it is exposed. For example, a business may be strictly liable, that is liable without being at fault if an employee injures a customer intentionally or negligently. Or a business may experience a loss of income due to the closure of a main access road undergoing maintenance.
Also, business activities affect risk. The activities performed by plastic surgeons are a great deal riskier than those performed by deli owners. Regardless of what your business does, it is likely to need some form of liability insurance apart from mandatory auto and workers’ comp insurance.
How much does business insurance cost in Washington?
Business insurance costs vary according to the size of a business, its location and the type of activities it carries out. Some businesses will be faced with certain risks, e.g. the risk of defective products, while others will not. Even where two businesses face the same risk, the degree of that risk may vary considerably.
A good example is workers’ compensation insurance that varies directly with the size of the workforce. All of these factors make it difficult to estimate business insurance costs.
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?
In short, yes. While incorporating as an LLC in Washington protects your personal assets, your business assets are still at risk in the event of a claim or lawsuit.