Setting out to launch a startup? After adding up payroll, equipment, and production costs alone, the business of starting up can be quite pricey. So much so, that you may be looking to cut corners wherever you can. Well, we’re here to tell you that the one thing you should not look to cut spending on is insurance.
That’s right, it may not be as exciting as that eco-friendly packaging deal or as consumer-facing as that first paid partnership–but it’s all the more worthwhile long term. Here’s why:
You see, startup insurance protects your investment, your potential as a business, and your people. You simply should not operate without it. And now it’s time for the good news: the best startup insurance doesn’t need to blow your monthly budget. In fact, the top provider on our list happens to be known for affordability. So exhale! And take a look at our choices for best insurance companies for startups:
The Best Startup Insurance
- Best Overall: Embroker
- Best General Liability: Thimble
- Best Commercial Auto: CoverWallet
- Best Cyber Liability: Hiscox
- Best Professional Liability: Embroker
- Best Product Liability: CoverWallet
- Best Business Owner’s Policy: Embroker
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Embroker: Best Startup Insurance Overall
Embroker, an insurance provider that could once be described as “the new kid on the block,” launched seven years ago and works with leading business insurance carriers to provide industry-specific protection. With over 25 types of insurance policies offered, Embroker has become a top choice for all kinds of businesses, including startups in software, tech, as well those “difficult-to-place” or emerging industries like crypto, cannabis, and aviation.
Embroker caters to startups by offering a specific Startup Package designed to be an all-in-one insurance bundle that’s customizable. With just one application, startups can receive plans that include up to four types of coverage. Popular bundles with Embroker include a combination of Directors and Officers, Employment Practices Liability, Tech Errors and Omission (Cyber included), and Fiduciary Liability.
We like Embroker as our top pick, because not only do they offer custom startup policies, they also are considered to offer some of the most affordable policies. Better yet, Embroker has a Startup Package Calculator that helps business owners determine how much insurance will cost before they even commit to getting a quote.
Not to mention, Embroker scores high, 5 out of 5 stars, for Customer Service on AdvisorSmith, so those who are new to the process can feel confident that they’ll get the support they need. We like that you can talk to a real, live human at any point in the insurance process, or you can speak to an expert by phone, email, chat, however. See how else Embroker ranked:
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AdvisorSmith Rating For Embroker
- Overall rating: [4.8] / 5 stars
- Coverage options: [5] / 5 stars
- Cost: [5] / 5 stars
- Ratings and complaints: [4.5] / 5 stars
- Digital experience: [4.5] / 5 stars
- Customer service: [5] / 5 stars
» Read our Embroker Commercial Review.
Thimble: Best General Liability
Any startup should consider getting General Liability coverage. Why? Because the court costs from just one lawsuit could bury your business financially before it has even had the chance to succeed. Thimble’s general liability insurance can pay to investigate and defend claims. And along with paying for damages, policies can also cover: Bodily injury, property damage, or personal and advertising injury.
And the great thing about Thimble General Liability plans is that they are also considered relatively affordable. On average, small business owners pay around $42 per month or $504 per year for general liability insurance–and that can end up covering much more than your actual out-of-pocket cost.
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AdvisorSmith Rating For Thimble
- Overall rating: [4] / 5 stars
- Coverage options: [4] / 5 stars
- Cost: [4] / 5 stars
- Ratings and complaints: [4]/ 5 stars
- Digital experience: [4] / 5 stars
- Customer service: [4] / 5 stars
» Read our Thimble Commercial Review.
CoverWallet: Best Commercial Auto
If your business owns and/or operates vehicles, you definitely need to purchase Commercial Auto Insurance for yourself as well as any employees who will be driving an owned or rented automobile. We like CoverWallet as our top pick because unlike sole providers, they act as an aggregator to find you the best match. Commercial auto insurance can be competitive, so you want to be sure that you find the best deal with the most coverage. And CoverWallet will help you do just that.
CoverWallet will help you find the best plan for your needs and budget by ensuring the plan at the very least covers: Bodily injury, medical coverage, collisions, property damage, damage other than collisions, loading and unloading liabilities, towing and labor cost. You’ll work with a specialist that will help you choose the best match for your business from various quotes received off of just one application. Take a look at CoverWallet’s overall rating:
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AdvisorSmith Rating For CoverWallet
- Overall rating: [3.4] / 5 stars
- Coverage options: [4] / 5 stars
- Cost: [3] / 5 stars
- Ratings and complaints: [3]/ 5 stars
- Digital experience: [4] / 5 stars
- Customer service: [3] / 5 stars
» Learn more from CoverWallet.
» Read our CoverWallet Commercial Review.
Hiscox: Best Cyber Liability
Hiscox, a provider with a trusted name in business insurance, is known to put a strong focus on providing coverage to smaller businesses and those just starting out. Rightly so, Hiscox has also landed as the best Cyber Liability provider on our Small Business list too.
Hiscox can help you protect your business from malware and hackers, very real risks in today’s marketplace. Not only will a Cyber Liability policy with Hiscox provide coverage for things like breach costs, cyber extortion and crime, business interruption and data recovery, but the provider also offers access to Hiscox CyberClear Academy, an online suite of training modules designed to reduce the risk of cyber incidents. Check out their overall AdvisorSmith rating:
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AdvisorSmith Rating For Hiscox
- Overall rating: [2.5] / 5 stars
- Coverage options: [4] / 5 stars
- Cost: [2] / 5 stars
- Ratings and complaints: [2.5] / 5 stars
- Digital experience: [3] / 5 stars
- Customer service: [1] / 5 stars (20% of overall rating)
» Read our Hiscox Commercial Review.
Embroker: Best Professional Liability
Our overall top choice for Best Insurance Companies for Startups, we gave the category of Best Professional Liability to Embroker too. Embroker says that they help business owners get the right professional liability insurance to properly protect your business from civil lawsuits for negligence, common mistakes, malpractice and misrepresentation claims.
Beyond purely monetary-based claims, E&O policies will protect you from less tangible issues, like loss of reputation or emotional distress, too. Embroker recognizes the ambiguity around these claims types and will work with you to ensure your policy covers as much as it can and should.
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AdvisorSmith Rating For Embroker
- Overall rating: [4.8] / 5 stars
- Coverage options: [5] / 5 stars
- Cost: [5] / 5 stars
- Ratings and complaints: [4.5] / 5 stars
- Digital experience: [4.5] / 5 stars
- Customer service: [5] / 5 stars
» Read our Embroker Commercial Review.
CoverWallet: Best Product Liability
The second time CoverWallet appears on our best list for startup insurance companies, we consider them a leader in Product Liability, because of their ability to garner and evaluate various quotes in an expedited manner.
Product liability insurance will protects your company from claims that a product you manufactured or sold caused physical harm or property damage to someone else’s property. Without product liability insurance, your business may be forced to pay for costly general liability claims connected to product faults out of your pocket–so this kind of insurance is as essential as any.
Again: here’s how the provider stacks up:
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AdvisorSmith Rating For CoverWallet
- Overall rating: [3.4] / 5 stars
- Coverage options: [4] / 5 stars
- Cost: [3] / 5 stars
- Ratings and complaints: [3]/ 5 stars
- Digital experience: [4] / 5 stars
- Customer service: [3] / 5 stars
» Learn more from CoverWallet.
» Read our CoverWallet Commercial Review.
Embroker: Best Business Owner’s Policy
Finally, we ranked Embroker as a top provider of Business Owners Policies.
Embroker’s BOP package encompasses the insurance policies that the majority of business owners need to have. To make life easier for startups already juggling a ton, Embroker bundles these coverages and sells them as one product.
With Embroker you can create a custom BOP and choose your limit and deductible to meet your business needs.Typically, Embroker’s Business Owners Policy (BOP) includes market-leading commercial property, general liability, and business interruption insurance.
AdvisorSmith Rating For Embroker
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- Overall rating: [4.8] / 5 stars
- Coverage options: [5] / 5 stars
- Cost: [5] / 5 stars
- Ratings and complaints: [4.5] / 5 stars
- Digital experience: [4.5] / 5 stars
- Customer service: [5] / 5 stars
» Read our Embroker Commercial Review.
Overview: Best Startup Insurance Companies
When starting your research, we suggest checking out Embroker for the best startup insurance. You’ll get instant and custom quotes that you can compare with other companies’ policies. From there, shop around, apply elsewhere for additional quotes, and get quotes either in-person or online. Whatever you do, spend time searching what will be the best fit for your startup, because finding a partner who will grow with you will lead to the best outcomes for your startup.
