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Get health insurance for your small business

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

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

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

best health insurance companies for small business owners

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

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

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For companies with 51 or more employees

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

Explore products and solutions for small businesses

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

Explore a range of group health plans and network options.

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

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

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

Get more health plan resources

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

Did you know?

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

Building healthier workplaces together

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

best health insurance companies for small business owners

Video transcript

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

ONSCREEN TEXT:          Building healthier workplaces together

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

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

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

MATT: Okay, good morning, everybody.

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

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

The screen shows Matt being interviewed before a white background.

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

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

ONSCREEN TEXT:          Matt Helgeson Owner, Albert Lea Seed

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

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

ONSCREEN TEXT:          Organization Albert Lea Seed 

Location Albert Lea, MN

Industry Agriculture

Established 1923

Number of employees 40

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

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

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

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

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

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

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

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

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

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

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

ONSCREEN TEXT:        Nicole Hansen Human Resources, Albert Lea Seed

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

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

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

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

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

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

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

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

Matt: The health of our employees is critically important.

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

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

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

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

Nicole is speaking before a white background.

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

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

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

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

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

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

ONSCREEN TEXT:        There

ONSCREEN TEXT:        for

ONSCREEN TEXT:        what

ONSCREEN TEXT:        matters

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

ONSCREEN TEXT:        UnitedHealthcare

Small black text runs along the bottom of the screen.

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

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

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

ONSCREEN TEXT:        EI232767439 11/23

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Exploring coverage options for small businesses

Health insurance for businesses, group health insurance coverage.

  • Learn more about purchasing insurance through SHOP
  • See SHOP plans and prices
  • How the Affordable Care Act (ACA) affects small businesses

Health reimbursement arrangements

  • Qualified small employers
  • Individual coverage, such as Marketplace plans
  • Additional health benefits (when offered with a traditional group plan)

Health Savings Accounts and other tax-favored health plans

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums.

Refer to glossary for more details.

Health Reimbursement Arrangements (HRAs) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Unused amounts may be rolled over to be used in subsequent years. The employer funds and owns the arrangement. Health Reimbursement Arrangements are sometimes called Health Reimbursement Accounts.

best health insurance companies for small business owners

Small Business Trends

Best small business health insurance.

best small business health insurance

A small business owner easily might become overwhelmed when it comes time to buy health insurance. With so many types of small business health insurance from which to choose, and so many companies offering those benefits, where is one to begin selecting health insurance ? After all, there are a lot of health insurance acronyms to understand.

Fortunately, the decision to purchase health insurance doesn’t have to be a daunting one. With just a little bit of knowledge and some basic information about small business health insurance companies, small business owners can make the best decisions for their companies and their employees

Types of Small Business Health Insurance

Before small business owners can understand the different health insurance options and various health insurance premiums, they must first understand the different types of small business health insurance plans. There are a few types of small business health insurance, each with its own benefits, deductibles and costs.

  • HMO Plans – Health management organization (HMO) plans are limited health insurance plans with the goal of cutting healthcare costs. HMO plans work great for healthy individuals who are on a tighter budget and who are comfortable only visiting doctors within a prescribed network of healthcare providers.
  • PPO Plans – Under preferred provider organizations (PPOs), patients have access to a larger network of doctors and more flexible care options, but they also typically pay higher costs for premiums and care. PPO plans are great for those who want to shop around for doctors, who are comfortable with and able to spend more, and who might need specialized care for a medical condition.
  • POS Plans – A point of service (POS) plan combines the benefits of an HMO and a PPO. While customers still need a specialist’s referral from a primary care physician, they pay less for out-of-network medical visits. The cost of a POS generally falls somewhere in between an HMO and a PPO.
  • EPO Plans – When consumers rely on an exclusive provider organization (EPO) plan for health insurance, they are encouraged to remain within their healthcare provider network, but they don’t need to get a referral if they choose to venture beyond it. The cost-effective health insurance option offers extra flexibility to small businesses.
  • HDHP – A high deductible health plan can be a risk for those that are uncomfortable paying out of pocket for medical care. The high deductible means the plan won’t start paying toward healthcare costs until the patient has incurred at least $1,300 in expenses. These plans can be offset by establishing health savings accounts through the federal government. HSA for small businesses is a tax-advantaged account that can be contributed to by both employers and employees in conjunction with an HDHP.

Best Small Business Health Insurance

Choosing the Best Small Business Health Insurance Plans

While understanding the different types of group health insurance plans will help small business owners when selecting health insurance, choosing health insurance coverage still remains a challenge for many small business owners. What do various health insurance plans have to offer, which is the best health insurance company, and how much does small business health insurance cost from various sources? Some health insurance providers might even offer additional options like self-employed health insurance , health savings accounts, benefits of dental insurance , and vision insurance coverage.

Navigating Health Insurance for Small Businesses: Our Methodology

As small business owners, we know that finding the right health insurance is more than a corporate necessity—it’s a vital component of employee well-being and business success. With an array of options clouding the decision-making process, we cut through the fog to bring clarity on what truly matters. In this section, we lay out the essential criteria to weigh when selecting the best small business health insurance plan. Each one is rated on a scale of one to ten, with ten being reserved for the most important elements. Here’s how we break it down:

Small Business Deals

  • Scale of Importance: 9/10
  • Plans must provide comprehensive coverage that meets your employees’ health needs without imposing restrictive limits.
  • Scale of Importance: 8/10
  • The plan should offer a fair balance between cost and the benefits received, ensuring it’s a sound investment.
  • Scale of Importance: 7/10
  • A wide network of healthcare providers ensures your employees have access to numerous quality care options.
  • The ability to tailor plans to suit diverse employee needs can greatly enhance satisfaction and coverage effectiveness.
  • Insurance should not be a maze; straightforward management and utilization are key for time-strapped small businesses.
  • Scale of Importance: 6/10
  • Access to responsive customer service can streamline the resolution of issues and provide necessary guidance.
  • Feedback from current policyholders can give insights into the real-world application and satisfaction with the insurance.
  • Scale of Importance: 5/10
  • Programs that promote health and wellness can be invaluable, contributing to overall employee health and productivity.

Best Small Business Health Insurance

Best Small Business Health Insurance Companies

What are the best health insurance providers for small businesses in 2022? Small business owners must consider a variety of factors when choosing the best health insurance company, including coverage, flexibility and cost. Most health insurance companies will offer similar plans, but each will feature unique elements and pricing. A small business owner might want to offer a health insurance option that includes dental insurance or even vision benefits, or they might seek the most affordable options or the best health insurance provider for overall general health coverage.

1. United Healthcare

Best For: Extensive coverage

Often chosen as the best health insurance for small business owners, United Healthcare features a large number of in-network providers and thousands of facilities throughout all 50 U.S. states. The health insurance provider makes substantial investments in technology to meet consumer demands, and it offers effective group coverage with a large scope and positive cost to value ratio for a variety of small businesses.

2. Blue Cross Blue Shield

Best For: Data-driven healthcare solutions

Other popular health insurance providers for small businesses include Blue Cross Blue Shield , which operates through the 36 local and independent health insurance companies in all U.S. states. Health benefits from Blue Cross Blue Shield are effective options for small business owners because the brand is trusted by millions of small businesses and their employees, and the health insurance plan is one of the nation’s most popular PPO networks, with a large coverage scope and generally positive reviews.

Best For: Preventative care advantages

Providing health insurance as a small business can become a reality by choosing Humana as a small business health insurance provider. One of the largest insurance providers in America, Humana’s plans are known for their preventative care coverage and convenient plan features like wellness rewards. Humana makes it possible to offer health insurance by offering a variety of affordable plans for small business owners and their employees.

Best Small Business Health Insurance

4. Kaiser Permanente

Best For: Affordability

Small business owners in eight U.S. states and the District of Columbia can choose an affordable small business health plan from Kaiser Permanente . The largest managed care organization in the country, Kaiser Permanente offers many affordable small business health insurance plans and options. With a strong emphasis on preventative care, Kaiser Permanente health insurance customers have the chance to stay healthy.

Best For: High deductible health plan options

One of the largest companies that provide health insurance in America, Aetna features competitive and affordable health insurance options for small business employers, including funding options and wellness offerings. In addition to offering health insurance, Aetna offers self-funded coverage to small businesses, and the health insurance provider is known for its high levels of customer satisfaction.

Best For: Flexible premiums and deductibles

While only available in 10 states, Cigna is still one of the best health insurance providers thanks to its broad range of small business health insurance options that accommodate a variety of needs, as well as its flexible premium and deductible options. Cigna features a large provider network, a detailed website and outstanding customer service.

Best For: Integrated health care

The largest for-profit managed health care company in the Blue Cross Blue Shield Association, Anthem is available to customers in 14 states. The health insurance provider has one of the most extensive networks in the country, so finding a doctor is a cinch. Because Anthem takes an integrated approach to medical care through combined health plans, patient data is connected to more effectively manage care.

Best Small Business Health Insurance

What Health Insurance Companies Rank Best for Customer Satisfaction?

Both Forrester and Verint Systems have released studies ranking the nation’s top insurance payers based on customer satisfaction, with varying results. According to Forrester’s survey of more than 85,000 U.S. adults, Human ranks first for customer satisfaction, followed by Kaiser Permanente. Verint’s report , on the other hand, ranked United Healthcare first in customer satisfaction, with Humana coming in second place.

What Is The No. 1 Health Insurance Company in the United States?

With total revenue exceeding $286 billion in 2021, United Healthcare is the largest health insurance company in the United States by revenue, according to analysis by ValuePenguin. The insurer is also the largest company by membership and market share. Anthem is the second-largest health insurance provider in all three categories.

Image: Envato Elements

best health insurance companies for small business owners

Nice article. However, check on the Humana piece since they are no longer offering group health plans in AZ. It was my understanding that they have stopped writing group health plans nationwide.

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Marketplace America.org Health Insurance

Marketplace Health Insurance for the Self Employed and Small Business Owners

Navigating health coverage as a self-employed or small business owner? Discover Marketplace plans, tax benefits, and smart options in this guide.

Self-Employed & Small Business Health Insurance

One of the major expenses for not just families and individuals, but also employers and the self-employed is having access to health care. Being self-employed or owning a business can make it seem like there are limited health plan options for medical services. The federal government provides resources to help employers of a small business and the self-employed to pay for most plans.

Ways to get medical coverage as a self-employed individual or small business owner

Individual health insurance policy.

The first way to get medical coverage as a self-employed individual or owner of a small business is to buy an individual health insurance policy. These plans are regulated by state governments, so the benefits and coverage can vary state to state. Most importantly, these plans do not have to be bought through an employer, so they may be more expensive. However, the federal government offers tax breaks for self-employed individuals and small business owners who purchase their own health coverage.

Trade association

The second way to get medical insurance as a self-employed individual or small business owner is to join a trade association. Some of these organizations offer group health insurance plans to their members. The benefits and coverage can vary depending on the organization, but this may be a more affordable option than purchasing an individual health insurance policy.

Medicaid and CHIP

The third way to get medical insurance as a self-employed individual or small business owner is to participate in a government program like Medicaid, Medicare or the Children’s Health Insurance Program (CHIP). These programs are designed to help low-income families and individuals afford health care. To be eligible for Medicaid, a person must have an income that is below a certain level. For CHIP, a family’s income must be low, but not as low as it would have to be to qualify for Medicaid, Medicare is only available to people over 65 or disabled.

Marketplace Insurance

The fourth way to get health coverage as a self-employed individual or small business owner is to purchase a medical insurance policy through the Health Insurance Marketplace. The Marketplace is a place where people can shop for and compare different medical insurance plans. There are four different types of plans that are offered through the Marketplace: Bronze, Silver, Gold, and Platinum. The plans differ in how much they cover and how much you will have to pay out-of-pocket for medical services.

Healthcare sharing ministry

The fifth way to get medical insurance as a self-employed individual or small business owner is to join a health care sharing ministry. These organizations are not insurance companies, but they do provide some financial assistance with medical expenses. To be eligible, members must agree to share their medical expenses with other members of the organization.

Short-term health insurance policy

The sixth way to get medical insurance as a self-employed individual or small business owner is to purchase a short-term health insurance policy. These policies are not required to provide the same level of coverage as other types of medical insurance plans, but they can be useful for people who need temporary coverage. For example, if you are between jobs or waiting for your Marketplace health insurance to start, a short-term health insurance policy can help you pay for medical expenses.

No matter which way you choose to get a health plan as a self-employed individual or small business owner, it’s important to make sure that you have coverage that meets your needs. You can use the resources on Healthcare.gov to find out more about your options and to compare different medical insurance plans. You can also contact your state’s Department of Insurance for more information.

Tax Implications

Individuals who are self-employed can deduct the cost of their health insurance premiums on their taxes. The IRS notes that this deduction is available whether you purchase a medical insurance policy through the Health Insurance Marketplace, a private company, or a government program like Medicaid or Medicare.

To deduct the cost of your health insurance premiums, you will need to fill out Form 1040 and include Schedule C. On Schedule C, you will list the amount you paid for health insurance premiums under the “Insurance and Other Expenses” section. The amount you can deduct is limited to the amount of profit you made from your business. So, if your business had a net loss for the year, you would not be able to deduct the cost of your health insurance premiums.

Self-employed individuals and small business owners have several options for obtaining health insurance. They can purchase a policy through the Health Insurance Marketplace, participate in a government program like Medicaid or Medicare, join a health care sharing ministry, or purchase a short-term health insurance policy. Tax deductions are available for the cost of health insurance premiums.

Here are a few things to keep in mind when shopping for medical insurance:

1. Make sure the plan covers the essential health benefits and preventive care required by the Affordable Care Act. These include hospitalization, prescription drugs, maternity and newborn care, mental health and substance abuse services, and more.

2. Consider your family’s health needs when choosing a plan. If you have young children, for example, you may want to find a plan that offers good coverage for pediatric care.

3. Compare premiums, deductibles, and other costs. Be sure to factor in your budget when choosing a plan.

4. Check whether the plan has a network of doctors and hospitals you can use.

5. Read the plan’s fine print to understand what is and isn’t covered.

With so many different medical insurance plans available, it can be difficult to know where to start. The best place to start is by using the federal government’s Health Insurance Marketplace.

How small businesses and the self-employed get health coverage through the federal government health insurance marketplace

The Health Insurance Marketplace is a website where you can shop for medical insurance. It’s open to everyone, regardless of whether you get your medical insurance through your job, Medicare, Medicaid, or another source.

If you’re self-employed or own a small business with fewer than 50 employees, you may be able to get a health plan through the Small Business Health Options Program (SHOP).

SHOP plans are available through the Health Insurance Marketplace. You can use the Marketplace to compare plans and prices, and apply for subsidies you may qualify for to secure a more affordable service.

You can also get help from a navigator or broker. These are people who can guide you through the process of choosing and enrolling in a medical insurance plan.

The open enrollment period for the Health Insurance Marketplace is from November 1 to December 15 each year. If you enroll during this time, your coverage will start on January 1 of the following year.

You can also enroll in a medical insurance plan outside of the open enrollment period if you have a qualifying life event, such as losing your job or getting married.

Types of health Insurance plans for small businesses and the self-employed

There are a few types of plans available through the Health Insurance Marketplace:

1. Marketplace plan: These are medical insurance plans offered by private companies that have been approved by the government.

2. Medicaid and Children’s Health Insurance Program (CHIP) plans: These are government-sponsored medical insurance programs for low-income people.

You can compare plans and prices on the Health Insurance Marketplace website. You can also find out if you qualify for subsidies to help lower your costs.

SHOP plans are available through the Health Insurance Marketplace. You can use the Marketplace to compare plans & prices and apply for subsidies to help lower your costs.

Federal government websites

To search for other information you can visit the official Federal Government website of the united states government for health and human services:

https://www.hhs.gov/programs/health-insurance/index.html

https://www.healthcare.gov/self-employed/coverage/

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Best Small Business Insurance Companies of February 2024

NEXT wins with low-cost coverage and an easy application process

best health insurance companies for small business owners

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

After extensive research, our experts found that Next is the best business insurance company overall because it offers a wide range of policy types and an easy online application process that lets you sign up in about 10 minutes. To choose the best commercial insurance companies for small businesses, we evaluated 19 national and regional insurers on 53 criteria in the following categories: cost, quote and application experience, customer satisfaction, coverage, accessibility, and financial stability.

best health insurance companies for small business owners

Best Small Business Insurance Companies of February 2024: Compare Coverage & Prices

  • Best Overall: Next
  • Best for Independent Contractors: Hiscox
  • Best Restaurant Insurance: Huckleberry
  • Best for Financial Stability: biBERK
  • Best Budget Coverage: Thimble
  • Best Workers' Compensation Insurance: The Hartford
  • Best for Larger Small Businesses: Chubb
  • Highest Customer Satisfaction: State Farm

Use an insurance marketplace like Insureon to get matched to the best provider for your business.

  • Our Top Picks

Huckleberry

The Hartford

  • See More (5)
  • Compare Providers

Bottom Line

What is small business insurance.

  • Types of Small Business Insurance
  • Pros and Cons
  • How Much Is Small Business Insurance?
  • How to Choose

Frequently Asked Questions

  • Methodology

Best Overall : Next

Next Insurance

Next provides a way to get a wide range of affordable small business insurance coverages entirely online in about 10 minutes. But you also have the option of speaking with a U.S.-based advisor in your area.

Offers a live certificate of insurance for easy sharing

Allows you to customize your business insurance policy with a variety of coverages

100% online quote and application with assistance available

Fewer specialized coverages than some other companies

Next offers a wide array of commercial insurance coverage types, which can be purchased online for same-day coverage. Next offers a business owner’s policy (general liability insurance and commercial property insurance), commercial auto insurance, workers' compensation coverage, professional liability insurance, tools & equipment insurance, and more.

The company also offers a variety of digital policy management tools, including the ability to share a live certificate of insurance and quickly add an additional insured, free of charge. Monthly payments are available, and eligible customers can save up to 25% with discounts.

Next Insurance has an A- (Excellent) financial strength rating with AM Best.  However, other companies offer more enhancements and specialized coverages, such as cyber liability insurance .

Based in Palo Alto, California, Next was founded in 2016 and uses artificial intelligence and machine learning to streamline the insurance buying process. In November 2023, it raised $265 million in funding from Allstate and Allianz X—one of the largest rounds of funding raised in the insuretech industry that year, according to Crunchbase. The deals include a strategic partnership with Allstate to develop new commercial auto insurance products.

Best for Independent Contractors : Hiscox

Hiscox offers several solutions for freelancers that make the company our top pick for the best independent contractor insurance among small commercial insurance providers.

Customization options for independent contractors

Monthly payments with no fees

Offers short-term liability insurance

Higher than expected number of complaints with the NAIC

Hiscox offers a straightforward business owner’s policy (BOP) that can be customized with business interruption insurance, electronic data loss insurance, professional liability insurance, and more.

You can also choose standalone policies for professional liability and general liability insurance, and you can get either coverage on demand for short-term projects. Plus, Hiscox allows you to pay for your business insurance policy in monthly payments, which can help freelancers better manage their cash flow. 

Hiscox has an A (Excellent) rating with AM Best, indicating excellent financial strength; however, the company received somewhat more complaints than expected over the last three years given its size. This indicates that Hiscox may have issues with customer satisfaction, although the company did receive fewer complaints each year, indicating improvement. BOPs start at around $500 per year.

You can get a quote online or speak with an agent by phone. You can also file claims online or by phone. Claims services can be accessed online 24/7.

With roots dating back to 1901, Hiscox USA is based in Atlanta. It is part of the Hiscox Group, an international company with more than 3.000 employees.

Best Restaurant Insurance : Huckleberry

Huckleberry offers a suite of essential restaurant insurance and food business insurance coverages that are suitable for brick-and-mortar restaurants, caterers, food trucks, and more.

BOP policies underwritten by Markel and Chubb

100% online quote and application

Wide range of customization options

Doesn’t offer employee benefits packages

Huckleberry, which is a broker that works with Chubb and Markel for its BOP policies, offers a restaurant endorsement as an add-on to its business owner’s policy. It’s a bundle of food-specific coverages that includes spoilage coverage, food contamination insurance, and ordinance or law equipment coverage, among others. Plus, you can add workers' comp, commercial auto, and liquor liability coverage to customize your business insurance policy as needed.

Most policies are underwritten by Markel or Chubb. Both companies have excellent financial strength ratings from AM Best. Like Next Insurance, Huckleberry offers an entirely online quote and application process that allows you to get coverage for your small business quickly. And you can get a certificate of insurance online to share with clients in less than a minute.

Huckleberry’s BOP includes general liability, commercial property, and business interruption insurance at a reasonable price. For example, a BOP for a food truck starts at $42 per month.

Founded in 2017 in San Francisco, Huckleberry is now owned by payroll company Paychex, which operates the Paychex Insurance Agency.

Best for Financial Stability : biBERK

biBERK has an A++ (Superior) financial strength rating from AM Best, the highest rating available, offers a wide range of industry-specific coverages, and is backed by Berkshire Hathaway.

Backed by Berkshire Hathaway Group

Online quote and application

Excellent customer service reviews

Dozens of endorsements to enhance a BOP

Doesn’t offer group employee benefits

biBERK Business Insurance is part of Berkshire Hathaway Group, which has decades of experience in the commercial insurance industry. BiBerk’s underwriters are all rated A++ (Superior) by AM Best, indicating a superior ability to meet financial obligations to policyholders.

What’s more, you can get a quote and apply to receive coverage instantly, entirely online. Policyholders have great things to say about the service and coverage on third-party websites like Trustpilot, where it has a 4.2-star average review.

biBERK can meet the needs of most small businesses, offering many commercial insurance options, such as business owner’s policies, commercial auto insurance, workers' compensation insurance , umbrella insurance, professional liability insurance, and general liability policies. You can add risk-specific endorsements and industry endorsements to your business owner’s policy, such as liquor liability and cyber liability coverage as well. BiBerk BOPs start at about $500 per year.

BiBerk was founded in 2015 and is based in Omaha, Nebraska.

Best Budget Coverage : Thimble

Thimble Insurance

Thimble offers on-demand policies for general liability insurance starting at $17 per month.

Offers monthly and on-demand coverage options

Liability policies start at $17 per month

Offers event insurance

Occurrence-based policies

Excellent reviews on Trustpilot

Doesn’t offer commercial auto insurance

Thimble is a great option for small businesses that need quick, temporary, affordable small business insurance, particularly those looking to purchase coverage for an event or on an on-demand basis. The company’s business owner’s policy includes general liability, commercial property insurance, and business interruption insurance, and you can also add professional liability, workers' compensation, and business equipment protection. 

Customers on Trustpilot have great things to say about the ease of the application process. You can get a quote and purchase coverage online or in the app. Several reviews also pointed out that Thimble’s customer service team was communicative and responded quickly.

Thimble works with several different insurance companies, each of which has an AM Best rating of at least A- (Excellent). Thimble policies are occurrence-based , which provides more robust coverage than claims-made policies. You’re covered for incidents that occurred while your business insurance policy was in force, even if you’ve since canceled it.

Thimble, which has been selling small business insurance since 2018, was bought by Arch Insurance in April 2023. Thimble is based in New York City.

Best Workers' Compensation Insurance : The Hartford

The Hartford has been around since 1810 and is one of the largest providers of workers' compensation insurance in the country.

Pay-as-you-go billing options

Access to a network of over 1 million providers

2nd-highest financial strength rating

Start claims online

Poor J.D. Power ranking

The Hartford is a top pick among small business insurance providers for the best workers' compensation insurance . The company provides a large network of doctors and nurse case managers to help your employees get healthy, and pay-as-you-go billing options.

When you choose to pay as you go, your premiums are based on actual payroll rather than estimates, which prevents overpayment. The Hartford also allows you to easily start a claim online. And the company uses data analytics to provide injured workers with a toolkit to aid in faster recovery. 

The insurer has an A+ (Superior) financial strength rating from AM Best; however, the company was ranked below average in the J.D. Power 2023 U.S. Small Commercial Insurance Study.

The Harford is based in Hartford, Connecticut.

Best for Larger Small Businesses : Chubb

Chubb is ideal for larger small businesses because it supports businesses with revenue up to $30 million and offers a very wide range of coverage options.

Supports businesses with up to $30 million in revenue

Few complaints relative to Chubb’s market share

Highest financial strength rating

Many enhancements to customize a BOP 

Must speak with an insurance agent to start your business insurance policy

Chubb is one of the largest carriers (by annual premiums) of commercial insurance and has a well-regarded small business owner's policy. The company has relatively high revenue limits for its small commercial business owner's policies and offers a wide array of customized endorsements for a broad range of industries.

You can enhance your business owner’s policy with electronic data liability coverage, professional liability insurance, a variety of property add-ons, crime coverage, equipment breakdown coverage , earthquake coverage (in certain states), and more. Workers' compensation, umbrella, commercial auto, and cyber risk coverages are also available.

Chubb can offer an instant quote, and policies are generated instantly, but you will need to speak with an insurance agent to start your coverage.

Chubb has an A++ (Superior) financial strength rating from AM Best and is ranked second for customer satisfaction in the J.D. Power 2023 U.S. Small Commercial Insurance Study. Chubb Insurance Group is based in Warren, New Jersey.

Highest Customer Satisfaction : State Farm

State Farm is one of the top-ranked companies for customer satisfaction in the J.D. Power 2023 U.S. Small Commercial Insurance Study and offers coverage for virtually any industry.

Customizable business owner’s policies with many coverage options

State Farm has been meeting the needs of small businesses since 1935 and has superior ratings. The company has an A++ (Superior) financial strength rating with AM Best , which indicates a superior ability to pay claims.

It's also ranked second in the J.D. Power 2023 U.S. Small Commercial Insurance Study. NAIC data reveals that State Farm has had just slightly fewer complaints than expected for its commercial liability policies. But, you’ll need to talk to an insurance agent to get coverage. Some business owners may prefer handling the entire transaction online.

The company’s BOP covers commercial property insurance and general liability insurance, plus loss of income, equipment breakdown, and money and securities protection at no extra charge.

You can add professional liability to the package as well. In addition, you can get commercial auto coverage, workers' compensation insurance, and many more coverages. You can also work with State Farm to provide benefits for your employees, such as group life, disability, and health insurance.

State Farm was founded in 1922 in Bloomington, Illinois.

Compare the Best Small Business Insurance Providers

The size of your small business may dictate the type of business insurance you need and which insurance company is best for you. For a low-cost BOP and quick online coverage, compare quotes from Next, Huckleberry, and BiBerk. Independent contractors and event workers will be best served by Hiscox or Thimble. Consider The Hartford and BiBerk if you’re most concerned with workers' compensation. If you need extensive coverage, including an employee benefits package, you’ll be best served by companies like State Farm and Chubb. 

Keep in mind, you may have specialized coverage needs for your industry that a standard business owner’s policy doesn’t include. Some companies offer more enhancements than others. When narrowing down your options, ensure you choose a provider that protects your business from common risks in your industry. 

Business insurance, sometimes called commercial insurance, covers your business's assets and income in case of unexpected events during normal business operations, such as lawsuits, natural disasters, or accidents. There are many types of commercial insurance for businesses, including coverage for property damage, legal liability, and employee-related risks, among others. A business owner's policy (BOP) includes general liability coverage, business property coverage, and business interruption coverage.

You may also want to add other kinds of coverage such as for commercial cars, errors and omissions, and key employees.

What Types of Small Business Insurance Are There?

Pros and cons of small business insurance, pros of small business insurance.

  • Protects company assets : Business insurance protects your company’s financial assets from losses resulting from damage to your property or third-party negligence claims. 
  • Safeguards employees : Workers’ compensation insurance pays the cost of medical treatment and lost wages for workers injured on the job. 
  • Fulfills legal or contractual obligations : State laws may require you to buy workers’ compensation, auto liability, or other types of insurance. Likewise, contracts you sign may require you to buy specific kinds of insurance, such as general liability or auto liability insurance. 
  • May boost the company’s reputation : When your business is insured, it’s a sign to customers and business associates know that you care about your company and managing its risks.

Cons of Small Business Insurance

  • Cost: Business insurance premiums can be a significant expense, especially for a small company.
  • Exclusions, limitations, and availability issues : All insurance policies exclude or restrict coverage for some risks. Insurers may refuse to cover some risks you want to insure or they may limit coverage you feel you need. 
  • Documentation requirements : Whether you’re applying for new insurance or filing a claim under an existing policy, you must comply with the insurer’s documentation requirements. Some insurers’ requirements can be cumbersome.
  • Adjustment and payment delays : Once you’ve suffered a loss, you must file a claim and wait for an adjuster to assess the damage before making repairs. If the adjuster is slow to respond, repairs and claims payments may be delayed.

How Much Does Small Business Insurance Cost?

Investopedia's research into six insurers found that a business owner's policy starts at $300 to $500 a year. The lowest premiums for professional liability also ranged from $300 to $500, and premiums for general liability insurance started at $200 to $400.

The price of a commercial insurance policy depends on several factors:

Industry or Profession

The type of business you have impacts your amount of risk. A construction company,  garage , or restaurant will have many more liability risks than a  retail store  or office, for instance. Also, your business type may be required by law to have certain types of coverage.

Business Location

Businesses in high-crime areas or places prone to natural disasters will likely pay more for commercial property insurance than those in low-risk areas. State regulations and whether you rent or own your space also help determine your costs.

Claims History

If you have a history of claims in the past, insurers may consider you a higher risk and charge you more.

Number of Employees and Customers

The cost of workers' compensation insurance is based on the number of workers your business employs. Also, if you have a large customer base, that exposes your business to more liability and property risks. 

Coverage Needs

Choosing higher annual aggregate liability limits will increase your premiums, as will choosing a $0 deductible for your property insurance. 

How Do I Know If I Need Small Business Insurance? 

Whether your business needs insurance depends on the nature and size of your operations and the laws in your state. Most businesses need general liability insurance to protect themselves from third-party bodily injury or property damage claims. You should consider buying liability coverage if you manufacture or sell products, invite customers to your premises, or provide services at customers’ locations. 

If your business owns buildings or other property that you use in your operations, you should consider buying property insurance. A commercial property policy protects your business against physical damage to property by a fire or other covered peril. It may also cover income you lose as a result of the physical damage. 

Do you use cars or trucks in your business? If so, state law may require you to buy auto liability insurance . You’ll need to insure the vehicles under a commercial (not personal) auto policy. If you employ workers, state laws may require you to buy workers’ compensation insurance . And if your business involves offering advice or providing a professional service, you should consider buying professional liability insurance . Also called errors and omissions insurance , professional liability insurance covers third-party claims against your business for financial losses resulting from malpractice, errors, or mistakes you allegedly made while performing a professional service.

Expert Insight

“If you’ve just started a business and are wondering about insurance, don’t assume your homeowners or renter’s policy will cover your business activities. Check with your insurer. If you employ workers, you’ll probably need to buy workers' compensation insurance. You should also consider general liability insurance, which protects your business from claims involving slip-and-falls and other common workplace accidents. As your business grows and accumulates assets, you may need additional coverages like commercial property and business auto insurance.”

— Marianne Bonner , Investopedia insurance expert, consultant, and former commercial insurance underwriter

Small-Business Insurance News

Most small businesses have general liability coverage, but other types of insurance are less popular, according to a survey by Hiscox. The company said results showed that 75% of the respondents were underinsured. The 2023 Hiscox Underinsurance in Small Business Report surveyed 1,000 small businesses and found that:

  • 65% had general liability coverage
  • 45% had property insurance
  • 35% had workers' compensation insurance
  • 32% had professional liability insurance

Among those who had insurance, 68% said they bought it because they worried about the consequences of a claim. Only 20% said they got it because a partner or vendor required it.

How to Choose a Small Business Insurance Company

Here’s a step-by-step process for choosing the best insurance company for your small business:

  • Ask trusted colleagues, business associates, or other business owners for recommendations. 
  • Check online reviews of business insurers. This list is a good start, but check out reviews from several sources and compare the results. Look for insurers that rate highly in several reviews.
  • Consider market share rankings from sources like the National Association of Insurance Commissioners . While large insurers aren’t necessarily better, most have a long track record and are financially stable.
  • Review J.D.Power’s customer satisfaction rankings of small business insurers.
  • Consider your preferred method of buying insurance. Do you want to buy a policy directly from an insurer or through an agent? Do you prefer buying insurance online or in person?  
  • Once you have some insurers in mind, evaluate their financial strength by reviewing data from rating agencies such as AM Best and Moody’s Investors Services .
  • Get quotes from the insurers you’ve selected (or their representative agents) and compare the results. When deciding between insurers, consider the coverages, limits, deductibles, and other features each offers, not just the price.

Is Business Insurance Required?

Generally, business insurance is optional unless it’s required by state law or the terms of a contract. For example, many states require workers’ compensation insurance or auto liability insurance if your company owns vehicles you use for business. Or a business contract you sign may require certain insurance. Say you own an electrical contracting business. You sign a deal with a general contractor in which you agree to install electrical panels in a building the contractor is constructing. The contract requires you to have general liability, auto liability, and workers' compensation insurance in place before you begin any work.

What Does Small Business Insurance Cover?

A business owner’s policy includes general liability insurance, commercial property insurance, and, often, business interruption insurance. General liability insurance covers lawsuits when your business is responsible for harming a third party. Commercial property insurance covers damage to your building. Business interruption insurance helps replace business income after a covered loss.

What Does Small Business Insurance Exclude?

Small business insurance excludes anything that you don’t specifically buy coverage for. For example, if you buy a business owner’s policy, but it doesn’t specifically include business personal property coverage, you won’t get coverage for the items inside your office or warehouse after a loss. There are also some disasters that are not typically covered. For example, you’ll need an endorsement to cover earthquakes and flooding. Certain catastrophic events, like war, won’t be covered at all. Commercial policies also won’t cover a loss if it’s covered by another policy.

What Is the Average Cost of Small Business Insurance?

The lowest annual premium for small business insurance is around $300 for a business owner’s policy, according to our research. That includes some commercial property coverage in addition to general liability coverage. But the premium you’ll pay for small business insurance will depend on the coverages you choose and their limits, what your business sells and how much it earns, your location, and whether you operate out of a rented or owned space.

Do I Need Small Business Insurance If I Work From Home?

If you have a home-based business, you still may need business insurance. Your homeowners policy may not be enough to cover your business equipment, inventory, or data, so you may need a separate business property insurance policy. You'll also want a liability policy if you're sued for damages caused by your products, services, or advice. And you may need business interruption insurance to cover losses from a natural disaster, theft, or equipment breakdown. Finally, if you have remote employees, you may need employers' liability insurance to cover you if they get injured, sick, or die because of their work.

Do I Need Small Business Insurance If I Have an LLC?

Yes, you need business insurance to protect your limited liability company (LLC) from lawsuits and property losses. Your personal assets are protected from lawsuits against your LLC, but that protection doesn’t extend to the LLC itself. Suppose a customer is injured at your business premises and sues your LLC for compensation. If your business has no liability insurance, it will have to pay legal fees and any damages or settlements awarded by a court. 

Your LLC may also be subject to property damage losses if it owns buildings, equipment, or other property that is damaged in a fire, say. Your LLC will have to use company assets to pay for repairs. You can protect your LLC from unexpected losses by purchasing general liability and commercial property insurance.

Is Small Business Insurance Tax-Deductible?

Small business insurance premiums are generally tax-deductible if the insurance is considered "ordinary and necessary" for your business. This includes premiums for liability, commercial property, malpractice, workers' compensation (when required by law), commercial auto, business interruption, and overhead insurance. Life insurance for officers and employees if you aren't a beneficiary is also deductible. And if you're self-employed, you may be able to deduct premiums for health, dental, and qualified long-term care insurance for you, your spouse, and your dependents.

Insurance Companies Our Experts Reviewed

We researched and reviewed 18 companies to find the best eight companies you see above on this list. The companies that didn't make it to our list didn't score as well as competitors on one or more of our criteria, including measures of quality, cost, coverage, and customer experience.

These are the companies we researched:

NEXT Insurance, Chubb Ltd., CoverWallet, Thimble, Nationwide, biBerk, Hiscox, AmTrust Financial, Huckleberry, Insureon, The Hartford, Farmers, Geico, Travelers, Progressive, CNA, Liberty Mutual, State Farm

Guide to Small Business Insurance

  • What is business insurance?
  • What is business liability insurance?
  • What is a Business Owner's Policy (BOP)?
  • How much does small business insurance cost?
  • Types of business insurance
  • Best General Liability Insurance for Small Businesses
  • Best Commercial Business Insurance
  • Best Sole Proprietor Insurance
  • Best Business Owner’s Policy Insurance
  • Best Health Insurance Companies for Small Businesses

Why Trust Our Expert Small Business Insurance Reviews

Investopedia launched in 1999, and has been helping readers find the best small business insurance since 2020. We conduct extensive research to provide unbiased, comprehensive reviews to ensure you make the right decisions for your needs.

How We Choose the Best Small Business Insurance Companies

In order to compile our list of the best commercial insurance companies for small businesses, we developed a comprehensive methodology. To identify which companies and criteria to include in our review, we analyzed business and market insight databases, considered commercial insurance company market share, looked at search data from Google, and reviewed company product pages and agents' guides to assess important product features.  

With those findings in mind, we spent three months digging up information about 53 features on 19 insurance companies, including ratings for financial strength by  AM Best , customer satisfaction rankings in the J.D. Power 2023 U.S. Small Commercial Insurance Study, and individual customer complaints reported to insurance state commissioners and recorded by the  NAIC (National Association of Insurance Commissioners) . We also considered nationwide availability; whether an online quote and application are available; and policy-specific features, including claim limits, cost, and coverage exclusions.

The criteria determine how easy it is to procure a small business insurance policy from the company, the quality of that policy relative to its cost, and how likely customers are to be satisfied with the purchase process and their experience as a policyholder. We ranked each company according to the following categories and weights:

  • Quote and application experience: 25%
  • Plan quality and customer satisfaction: 15%
  • Coverage: 15%
  • Accessibility: 10%
  • Financial stability: 10%

Companies that make coverage widely available, have a streamlined quote and application process, offer robust features, and have strong ratings for financial stability and customer satisfaction topped our list. For more information, read our full small business insurance methodology

Next Insurance. " Business Insurance for 1300+ businesses ."

AM Best. " AM Best Assigns Credit Ratings to Next Insurance US Company ."

Crunchbase. " Small Biz Insurer Next Insurance Raises $265M ."

AM Best. " Hiscox Insurance Company Inc ."

NAIC. “ Hiscox Insurance Company, Inc .”

AM Best. " AM Best Affirms Credit Ratings of Chubb Limited and Its Subsidiaries ."

AM Best. " Markel Insurance Company ."

AM Best. " AM Best Affirms Credit Ratings of Berkshire Hathaway Homestate Insurance Company and Its Affiliates ."

Trustpilot. " biBerk Business Insurance ."

Trustpilot. " Thimble Reviews ."

Thimble. " Insurance Ratings ."

Arch Insurance. " Arch Insurance Acquires Thimble ."

The Hartford. " Our History ."

J.D. Power. “ 2023 U.S. Small Commercial Insurance Study .”

Chubb. " Business Policy Insurance Policy ."

Insurance Information Institute. " Facts and Statistics: Commercial Lines "

State Farm. " Product Growth ."

Businesswire. " AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Its Subsidiaries ."

NAIC. “ State Farm Fire & Cas Co National Complaint Index Report .”

Hiscox. " 2023 Hiscox Underinsurance Report ." Pages 3-4.

IRS. " Publication 535 (2022), Business Expenses ."

best health insurance companies for small business owners

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When it comes to choosing a health insurance package for your business, the devil is in the details. Depending on your business’s characteristics and employee makeup, one form of health benefit will meet your needs better than another.

Below are some of the key criteria you should use to select the best type of health insurance for your small business.

Business size.

Most types of health insurance vary in their ability to serve your needs depending on how many employees you will be covering. This first point of consideration is not only an indicator for how much you should budget toward health insurance, but it also determines which insurance types you qualify for.

For example  Many small businesses are unable to meet minimum participation requirements or afford traditional group health insurance. In this case, a health reimbursement arrangement (HRA) will likely be the better option.

Types of employees

The next point of consideration is the types of employees you hire. If your business primarily hires seasonal, full-time employees, you’ll likely choose a different insurance solution than a company that hires non-seasonal employees.

Businesses operating in more than one state

One more consideration to make is whether or not the company has employees based in multiple states. In these cases, businesses often have a hard time finding a single, traditional group policy that works for all eligible employees, and must find an alternative solution as a result, or offer multiple group health policies, which is not feasible for most businesses.

Below, the most common types of insurance are listed with use-case examples and considerations:

Traditional group health insurance.

Traditional group insurance is one of the most common health benefits that businesses in the United States use. It is typically purchased through an insurance broker and administered through an insurance company. Group health insurance plans function by distributing the cost of healthcare across the company’s employees participating in the plan. Therefore, the larger the employee base, the lower the overall premium cost will be for employees.

For example: If a company has very few employees, and someone must have an expensive procedure done, the cost of insurance will go up significantly the next year. However, companies with a lot of employees will not experience the same sharp increases in insurance premium costs year over year.

Another point of consideration that businesses should make before offering a group health insurance plan is their available budget. According to the Kaiser Family Foundation , in 2019, the average business offering traditional group health insurance paid 71% of individual plans, equating to an average of $5,946 per year (this data includes all business sizes offering traditional group health insurance). And in order to be competitive, some small- to medium-sized businesses investigating group health insurance policies cannot afford this solution.

For large businesses, however, traditional group health insurance is better understood and more commonly offered than other insurance benefits. For this reason, many large employers choose to offer group policies simply because they are easier to communicate to potential employees than other insurance solutions.

Health Reimbursement Arrangements (HRAs)

Health reimbursement arrangements (HRAs) are just what they sound like, a reimbursement for health expenses. In this arrangement, employees shop for and purchase their own health insurance policies and submit the expenses to the employer for reimbursement.

One important advantage to HRAs is the tax-free nature of the reimbursements . Employers make the reimbursement payments without paying payroll tax, and employees receive the money without having to pay income tax. In this scenario, the employer and employee save a combined 35% on taxes.

For some small employers, this insurance benefit is more preferable to group health insurance for a few reasons:

  • Employees have the freedom to choose a health plan that fits their needs best
  • For small companies, both the employee and employer pay less per individual premium plan
  • Employers set a guaranteed reimbursement allowance cap, helping keep them on budget
  • There are 6 different types of HRAs that employers can choose from to fit their specific needs

While there are several different types of HRAs, the two most commonly-used HRAs for small employers are the qualified small employer HRA (QSEHRA) and the individual coverage HRA (ICHRA).

The QSEHRA is restricted to businesses with fewer than 50 employees and that do not already have a group health insurance plan. With the QSEHRA, employers reimburse employees for individual health insurance plans as well as eligible out-of-pocket expenses . Therefore, the QSEHRA is beneficial for employees that have their own plan, are on a spouse’s plan, or simply want to use the reimbursement for out-of-pocket expenses. In addition, employers have the power to dictate the allowance cap and whether or not they want to restrict the HRA to insurance premiums or also include out-of-pocket expenses.

Use case 1: an employee could use the QSEHRA to pay for a portion of their spouse’s insurance premium and use the rest of the allowance to pay for medications, co-pays, and other out-of-pocket expenses.

Use case 2: employers can also restrict the QSEHRA to only apply toward the employee’s self-acquired insurance plan, and offer different allowance amounts to single employees and employees with families.

Businesses that exceed 50 full-time equivalent employees and have a group health insurance plan should look into the ICHRA (next).

The ICHRA is a health insurance benefit for companies of all sizes which focuses specifically on reimbursing employees for money spent on health insurance premiums. In this HRA, employers can choose to offer the ICHRA as a standalone benefit, or couple it with their own group health insurance policy.

The ICHRA is a new type of HRA that becomes available on January 1, 2020. With it, employers who were previously restricted from the tax advantages and budgetary control of the QSEHRA will now have those same privileges through the ICHRA.

Another difference from the QSEHRA is there are no allowance caps for how much an employer can reimburse their employees for. And, instead of being restricted to two employee types for setting allowance amounts, employers can use the 11 employee classes designated by the IRS.

  • Full-time employees
  • Part-time employees
  • Seasonal employees
  • Temporary employees who work for a staffing firm
  • Salaried employees
  • Hourly employees
  • Employees covered under a collective bargaining agreement
  • Employees in a waiting period
  • Foreign employees who work abroad
  • Employees in different locations, based on rating areas
  • A combination of two or more of the above

Health Insurance Stipend

Businesses that simply want to provide financial support for health expenses to employees can use a health insurance stipend . With this benefit, employers simply add a line item to payroll checks that are labeled separately from the income amount. Health insurance stipends work well for employers that don’t have enough budget to offer a more formalized health benefit.

Although health insurance stipends allow employers to operate on a lower budget than other insurance solutions, they have their drawbacks. For example:

  • Health insurance stipends are considered income and are not tax-advantaged funds
  • Because health insurance stipends do not offer tax-advantaged funds, job-applicants are more likely to prioritize jobs with more competitive benefits packages
  • There is no guarantee the funds will be used for health care costs

HSA vs. Health Insurance Stipend

A health insurance stipend is not an HSA and differs significantly. With a stipend, the employee is merely receiving additional income through payroll. In this situation, neither the employer nor the employee qualifies for tax savings. With an HSA, however, money is placed into a government-regulated savings account, is tax-advantaged, can be used for investments and even retirement. In fact, many financial advisors suggest maxing out HSA contributions each year over contributing additional money to a 401K.

Before you choose a health insurance benefit for your business, first use the following points of consideration to select the right health benefits option for your business:

  • Businesses with more than 50 employees cannot offer the QSEHRA
  • Any size business can offer the ICHRA, but are restricted to reimbursing insurance premiums only
  • Group health insurance can be very expensive for small businesses
  • Many businesses initially plan on setting exclusive rules for who they will offer health insurance benefits to. It is important to ensure the proposed restrictions are legal before moving forward
  • Another common issue that employers face is getting employees to participate in the benefit. Business owners should work to ensure employees participate in the benefit or make alterations to make it more appealing.

What Are HSAs, and How Can They Help You Save on Taxes? Would you like to enjoy tax savings while putting money aside for your healthcare costs, both now and in retirement?

The Startup Roadmap: Accounting, Insurance, and Legal Considerations In this module of the SCORE Startup Roadmap, you’ll establish your administrative and operational structure and processes.

Copyright © 2023 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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health insurance for small business owners

Health Insurance for Small Business Owners: What Are The Best Options?

To function successfully, small businesses require a healthy workforce capable of managing day-to-day tasks. This might mean keeping yourself healthy, or it could include a group of employees. Thankfully, the Affordable Care Act (ACA) provided sweeping changes to how health insurance for small business owners works.

If you operate a small business with 50 or more full-time employees, you’re legally required to provide health insurance.

If you operate a small business with 50 or more full-time employees, you’re legally required to provide health insurance. If you read the fine print, your health plan must be “affordable,” meaning no employee spends more than 9.5% of their household income on premiums.

Even if you are the very definition of a small business, with fewer than 50 full-time employees, health insurance is a sound investment. It is a safeguard to protect both you and your burgeoning company.

As a small business owner with much to manage, how do you locate and arrange an affordable health insurance plan?

How Can Small Business Owners Obtain Health Insurance?

When setting up a small business, your to-do list can be overwhelming. Obtaining health insurance for your small business may seem extra daunting. However, this task may not be as intimidating as you think. Small business owners have a few health insurance options, including:

  • Individual Marketplace: If you are the sole employee of your small company, a personal policy purchased via healthcare.gov will suffice. Even better, depending on your location, you may be eligible for tax credits when you buy a health coverage plan.
  • Private Plans: Another worthwhile option to explore is a private individual plan through a primary health insurance carrier, such as Blue Cross Blue Shield. You will not receive the same tax credits, but you will receive health care coverage explicitly built with you and your needs in mind.
  • Trade Association: If your small business is part of a broader industry, say, plumbing, you may be eligible to take part in professional trade associations. In this case, all members buy into a group insurance policy, so everyone taking part pays a little. You could easily save thousands of dollars per month.
  • Medicare: Medicare has seniors’ well-being in mind. If you are of age and met your Medicare tax contribution burden, you may be eligible for a Medicare health insurance plan for small business owners.

Alternatively, if you run a small business with multiple employees, you may qualify for:

  • Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): Your small business would essentially set aside funds every month for each employee’s healthcare allowance. If an employee submits proof of their healthcare costs, it reimburses them via the fund.
  • Small Business Health Insurance Program Marketplace: Like the individual or private plan marketplace, the small business marketplace offers health insurance plans designed for 1 to 50 full-time employees.
  • Private Group Plans: If all else fails, you may be eligible for a private group health coverage plan through a nationwide health insurance carrier. As most offer programs that scale with your business.

Health insurance for small business owners can vary greatly, so be sure to consider all of these options carefully. Start your search well before the open enrollment period to avoid rushing into a plan.

What Are Some of the Best Plans for Small Business Owners?

best health insurance companies for small business owners

There are thousands of local and national health insurance companies operating in the U.S. today. Chances are you meet the criteria for one or more. But first, you need to find a health insurance plan for small businesses that makes sense.

Here are a few of the top health insurance providers for businesses:

  •  Blue Cross Blue Shield
  • United Healthcare

Each one offers varying healthcare plans , affordable pricing options, and substantial plan benefits that both you and your employees may take advantage of in the long-run.

The key when purchasing health insurance coverage as a small business owner is to shop around. When you call a health insurance provider, you are not signing a contract—nothing is set in stone yet. We recommend calling a few of the top companies on your list, then request a quote.

In the end, the health insurance provider you choose will be the one that fits your budget and offers health benefits that make sense to you.

How Can You Choose the Best Health Insurance Plan?

We know choosing a health insurance plan for small business owners is challenging. It is quite the feat for an individual, too. There are a few factors to consider when choosing a health insurance plan for your small business:

  • “Metal” Categories: Almost all insurance providers under the sun use “metal” categories to denote their policies. You have Bronze, Silver, Gold, and Platinum. These policies offer varying levels of care and cost to you.
  • Monthly Cost: As a business owner, a crucial part of your day-to-day is managing the finances. Well, a health insurance policy is one more piece of your financial puzzle. Find a plan with a monthly premium that fits your business budget and explore the policy’s out-of-pocket costs, deductible, and any included benefits.
  • Plan/Network Types: Some health insurance policies allow you to select any doctor or health care center in your area. Some, unfortunately, limit your choices for coverage options. Find a policy that works with you, especially if you already have a doctor in mind.
  • Enrollment: Do not miss the open enrollment period that rolls around each November. If you do miss this limited window, you will probably need to wait. Most insurance companies have extenuating circumstances they will accept outside of open enrollment periods, though.

What if You Have Employees to Cover?

If you have employees to consider, you are (1) doing well as a business and (2) likely shopping through a national provider or the small business health insurance program marketplace, which we mentioned briefly already.

best health insurance companies for small business owners

The more employees you have, the higher the monthly premium, so consider your finances when shopping around for a plan. Furthermore, insurance cost is not the only determining factor to consider. When you have a large group, certain benefits fall by the wayside, while they prop others up.

If you are comfortable choosing a health plan for everyone, then, by all means, start searching straight away for a plan to fit your budget and needs. Otherwise, poll your employees to see what healthcare benefits they require to do their absolute best work. If you can find a plan with enough advantages to benefit most, if not all, of your employees, that is fantastic.

How Does Health Insurance for Small Business Owners Affect Taxes?

As a small business owner seeking health insurance for you and your employees, you may be eligible for a tax credit. If you qualify for the Small Business Health Care Tax Credit, the government may cover up to 50% of the monthly health insurance premiums for your employees.

However, to take advantage of the impressive tax credit, you need to find an eligible plan via the Small Business Health Options Program (SHOP). Furthermore, you only qualify for the credit if: 

  • You have fewer than 25 full-time employees.
  • Your average employee’s salary is $50,000 or less annually.
  • You pay at least 50% of your employees’ monthly premium costs.
  • You provide SHOP coverage to your full-time staff.

But that’s not all. If you run a business with fewer than ten full-time employees total, each of whom earns $25,000 or less annually, you’ll receive an even larger tax credit.

That being said, you may not qualify for a tax credit if you hire seasonal workers unless you keep them on staff for 120 days or more. On top of that, according to the IRS , the credit is only available to each business for two consecutive tax years. For those two years, you could save—potentially—tens of thousands of dollars. Most reinvest the money into their business.

The IRS is all about fine details, so read through their qualifications or ask your insurance provider for more information on available tax credits for small business owners. You may be eligible for more than one.

Self-Employed Health Insurance Deductions

On top of tax credits for small business owners, there is one more worthwhile deduction to consider. If you are considered self-employed, you can typically deduct 100% of your monthly health insurance premiums for health, dental, and long-term coverage. The same goes for your spouse or dependents aged 26 and under.

Like with the small business tax credits through the IRS, you must file as self-employed and show a net profit on your tax documents to qualify for a self-employed health insurance deduction. Alternatively, you may be eligible if you file as an individual receiving wages from an S Corporation as a shareholder with 2 percent or more shares total.

As a small business owner actively doing their part to care for hardworking employees, you have your work cut out for you. More often than not, shopping around for health insurance policies designed to cover not just you but an entire workforce is a monumental task. It is best not to go at it alone, so consider working with an insurance provider or broker who understands health insurance for small business owners.

Public News Service

Study: TX small businesses want lower health care costs, higher transparency

The survey by the group Small Business for America's Future polled more than 1,000 small business owners, including 110 in Texas.

Dr. Erika Gonzalez, co-chair of the group, reported 74% of respondents said they were not in a position to offer employees health insurance, which she said puts them at a disadvantage to hire or retain top talent.

"If you're not able to offer that, a lot of employees are going to pass," Gonzalez pointed out. "Even if it's a good opportunity, they're going to pass on if it means they can get better coverage and security for their families elsewhere."

The survey revealed a bipartisan concern and consensus about the issue, with a nearly equal representation of Republican, Democratic and independent small business owners. Gonzalez noted respondents supported regulating anticompetitive practices and boosting price transparency in billing in order to bring down the costs.

Recent legislation passed by Texas lawmakers could open up the health care marketplace by eliminating anticompetitive clauses in health insurance contracts.

Gonzalez called it a step in the right direction but argued more is needed.

"They're also looking at legislation that would help with the facility fees that sometimes are added on by hospitals," Gonzalez explained. "All of this would reflect back on knowing why they're paying for what they're paying and giving them transparency as to the bills that they're getting."

She admitted the health care challenge will not be solved overnight, but changes need to be implemented to determine if they improve the overall system in two to three years. The Small Business for America's Future survey found annual premiums for employer-sponsored family health coverage were nearly $24,000 in 2023.

Among the Texas small business owners responding to a survey, 81% said the cost of health care constrains their ability to grow. (MaksymYemelyanov/AdobeStock)

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29 Best Banks for Small Business Owners in 2024

By Meaghan O'Neill , Kelsey Mulvey , and Lila Allen

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All products featured on Architectural Digest are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.

Running a business comes with plenty of fiscal responsibilities. Fortunately, opening an account with one of the best banks for small business can help with everything from administering payroll to budgeting for office supplies—even if numbers aren’t your forte. For an entrepreneur, opening a bank account for business might seem like a hassle, but separating personal and professional finances is a move that will pay off. Setting up a small business bank account makes it easy to spot paid bills, expenses, and payments received; plus, you can establish business line of credit , which is important if you want to apply for a business credit card or a small business loan . (A 2018 Nav survey found that 70% of small business owners without a professional checking account were denied by lenders.)

While many small business bank accounts have similarities, they can have nuances that may be better suited for your company’s needs. Ultimately, you’ll want to consider your company’s average account balance and number of transactions as well as logistical factors, like location, customer service, and mobile banking. While finding the right bank account for business can be challenging, AD PRO has assembled the tips below to help, as well as a list of the ultimate small business bank accounts.

Understanding small business bank account basics

Unless you have a background in banking services, researching small business bank accounts may feel overwhelming—but understanding the basics will help you make the best decisions for your company. Before you start your search for the best small business banking programs, consider a few of these FAQs.

What is a business checking account?

Think of a business checking account as the primary destination for all your company’s finances. When you open a business checking account, you can use it to pay invoices, bills, and employees, withdraw cash, and even receive payments from credit cards. So, how is that different from the checking account you already have? The main difference between a business checking account and a personal one is its intended purpose. Though you might be able to move funds into or out of it, a personal account isn’t set up with work in mind, and may have certain limitations. Meanwhile, a small business bank account is designed to support you as your business grows, which means you may be able to issue debit cards for employees or link finances up with your favorite bookkeeping software.

Since a business checking account is essential for most small businesses, you’ll want to open one immediately. But if you have even a small cash reserve, there’s value in opening a savings account too. Doing so can boost your line of credit, earn interest, and help you maintain minimum balance requirements.

How do you open a business bank account?

Once you find a bank that suits your small business needs, you’ll want to apply for an account promptly. Be ready to provide personal information like your social security number, mailing address, and a copy of your passport or driver’s license. Banks will also require you to submit your business’s name, address, an employer identification number (EIN), and any documentation to support the fact that your company is legitimate and you are the owner.

Some institutions may require deposits to open business bank accounts, but often that fee can be $100 or less. (If you opt for an option with no minimum opening balance, make sure to read the fine print to ensure you’re not compensating in monthly maintenance fees.) Some banks offer a sign-up bonus as a perk for opening an account; however, it’s important to prioritize whichever business checking account will be a good fit in the long run.

In most cases, you can quickly sign up for a business checking account online; however, approval may take a few business days.

How to choose a business bank account

No two companies are alike, which means your best small business banking match might be different from the rest of your network. But, if this is your very first time setting up a small business account, you may not even know what to look for in the first place.

Selecting the right small business bank account is a decision that should not be taken lightly. While some small business owners might want investing advice or great customer service, others might prioritize local knowledge or online convenience. To help, here are a few factors to consider.

Contrary to popular belief, a “free” business account isn’t always free. Although business banking accounts typically have higher fees than personal ones, some banks offer checking accounts with no monthly fees. However, account holders may need to maintain a minimum daily or monthly balance, or limit transactions to avoid fees. That said, free and low-cost accounts do exist. Read the fine print and choose wisely.

Unlike personal checking accounts, business bank accounts usually have limitations on monthly transactions (which include deposits, withdrawals, transfers, and electronic payments). Ranges vary, so it’s helpful to know where your small business falls on the spectrum, as well as the fees for exceeding the limit. There may also be a maximum to how many transactions you can make while still qualifying for a free account. Before applying, consider how your business operates on a monthly basis.

Many banks offer better rates to those small businesses that keep their balances above a certain amount, for either a daily or monthly average. Consider what yours will be and plan accordingly.

Today, you can have a small business account without ever stepping foot in a branch. For entrepreneurs who track their finances through websites or mobile apps—or complete most transactions online—going digital might be the right move. But if you deal with lots of cash, prefer human interaction, or want to build a rapport with a professional who understands your region or local economy, you’ll want to use a bank account with a physical branch nearby.

If you use QuickBooks, payroll software, or another accounting tool, you may want to work with a bank that allows you to integrate the data from your software. It’ll be a lot more efficient to balance your books if withdrawals automatically show up in QuickBooks. If you use PayPal or Square, you may find it helpful to have those transactions show up in your checking account too.

Small or large? As the business owner, the choice is yours. Having a close relationship with someone who works at a local bank (or a local branch of a national bank) can have its benefits. That person may have the ability to adjust fees or give you more wiggle room on a small business loan application. The downside of smaller banks is that information isn’t always clearly spelled out online, you may have to open an account in person, and the online banking tools may be lacking. By contrast, larger banks are likelier to outline fine print online and allow you to open an account digitally.

If you like the bank you use for personal finances, and it has a business checking account option that matches your needs, there’s nothing wrong with opening an account there. Being able to access information from multiple accounts through one location, website, or mobile app is a nice bonus.

With so many options, it’s easy to select a bank account for business that caters to your needs. But first, consider where your business will be a few years down the road. If you’re looking to scale up, you might want to consider a program with more monthly transactions than you currently need. Or, if you want to add an e-commerce element to your business plan, you might want to explore accounts with merchant services.

Should you join a credit union?

A business bank account is one way to manage your professional finances, but it’s not the only option. Some small business owners might find themselves drawn to a credit union, which is typically a cooperative, member-owned organization. The main difference between the two is that a bank is a for-profit financial institution, and a credit union is generally a nonprofit service. Additionally, small business owners will have to become a member of a credit union to use their services, while a bank only requires an account.

Although many credit unions might offer similar services—such as administering loans as well as setting up checking and saving accounts—they might have fewer features than a typical bank.

The best banks for small businesses

There are more than 4,100 commercial banks in the US offering thousands of business checking account options. What busy entrepreneur has time to sort through it all? Instead, read the list below for the best banks for small businesses.

This business bank account allows up to 100 transactions per fee period at no charge and cash deposits up to $5,000 per month. Although this account has a $10 monthly service fee, it can be avoided with a $500 daily balance. With a minimum opening deposit of just $25, this solution is excellent for a small business with limited cash-flow activity. The Initiate Business Checking account might be the simplest of Wells Fargo’s offerings, but it still offers a zero-liability debit card protection as well as fraud monitoring. And, as with all Wells Fargo business checking accounts, small business owners can apply online or in person, then send deposits and required documents later.

Sole proprietors with a lot of clients will find a lot to love about the Bluevine Business Checking account. Unlike larger banks, Bluevine has unlimited transactions as well as no monthly service fees or minimum balances with its standard plan. What’s more, account holders can access over 128,500 ATMs and retailers to deposit or withdraw cash. You’ll have some peace of mind knowing Bluevine does not charge overdraft fees. Small business owners can also earn up to 4.25% APY on balances up to $3 million, with $3 million in FDIC protection. And, to make your banking even easier, sync up your Bluevine business checking account with payment platforms like Venmo and Square, or accounting tools like QuickBooks Online.

At Comerica, a small $50 deposit can grant you a no-interest account without a monthly maintenance fee or minimum balance requirement. You can also waive your activity fees with deposits up to $2,500 per month, or 75 or fewer transactions. Comerica can sync with QuickBooks, making it possible to send digital payments or keep tabs on your accounting. Plus, as your business grows, you can upgrade to another account using the same account number. Comerica is not a nation-wide chain, but it does have locations in several states (though fees and conditions will vary).

If your business bank account needs are fairly simple, and you require few monthly transactions, Truist Simple Business Checking account could be a good option. With no monthly maintenance fee or minimum balance requirement, this small business bank account can be a great option for entrepreneurs who are just starting out. The account includes 50 transactions and $2,000 in cash processing per month. Stipulations and rules are laid out in further detail on its website.

With no monthly account maintenance fee for the first three months and a digital cash flow platform that helps you operate your business finances, this competitive account may be a good fit if you need checking but not a lot of transactions (150 or fewer per month). Once the $12 monthly fee kicks in, avoid it by maintaining a $500 average monthly collected balance.

With 250 transactions and $20,000 in cash deposits per pay period, Wells Fargo’s Navigate Business Checking account can be a great option for entrepreneurs whose businesses are growing quickly. Avoid the $25 monthly service fee by keeping a $10,000 minimum daily balance or $15,000 in combined balances across Wells Fargo accounts. (You can also make qualifying transactions from a linked payroll services account.) Small business owners with a Navigate Business Checking account pay no fees for incoming wire transfers, overdraft protection transfers, stop payments, cashier’s checks, or money orders. Plus, receive two complimentary outgoing domestic wire transfers and two non-Wells Fargo ATM cash withdrawals per fee period. Applying requires a minimum opening deposit of $25.

For a monthly maintenance fee-free checking account with no minimum balance, consider a First Citizens’ basic business bank account. The bank offers free transactions for up to 100 items and $5,000 each month. First Citizens has a robust digital banking program, but if you want to handle your finances in person, visit 500-plus branches in states such as California, North Carolina, Virginia, and more. At a minimum deposit of $100, this bank account for business is a little pricier upfront than some other affordable options, but there’s definitely a payoff with its perks.

This Bank of America account is great for the growing small business. Avoid the $16 monthly fee by spending $250 on net-qualified debit card purchases, maintaining a combined monthly average balance of $5,000, or becoming a Preferred Rewards Business member. Not only is Bank of America’s small business account equipped with small fraud protection and security—giving you some extra peace of mind—but it’s also linked to Zelle so you can easily send and receive money. Bank of America also has a handful of tools like Cash Flow Monitor and mobile check deposit so you can stay dialed into your day-to-day finances. You can apply online, but note that Bank of America outlets don’t exist everywhere.

This straightforward business checking account offers unlimited debit card purchases and transactions within the Chase ATM network, plus up to $5,000 in free cash deposits per statement cycle. The $15-per-month fee is waived when you maintain a $2,000 minimum daily balance or link a Chase private checking account. Apply online, or visit one of Chase’s many US locations to get started. Plus, earn $300 when you open a Business Complete Checking account with qualifying activities.

Conduct up to 300 transactions per month and deposit up to $5,000 in cash with Comerica’s Small Business Checking account, which waives monthly fees with monthly balances of $7,500 or more. Fees and conditions vary by location, so ask a Comerica representative before you apply. Like the company’s Basic Business Checking account, you’ll receive a year of bill-pay service free. This platform also offers specialized services such as an automated bill payment schedule and payroll activities.

This basic business checking account is ideal for businesses that make fewer than 250 transactions and less than $5,000 or $10,000 (depending on the state) in deposits. Maintain the minimum monthly balance of $5,000 to avoid the monthly fee of $15. One caveat: You must apply at a physical branch, but, once you have your small business account, you can receive text and email notifications and stay up-to-date with the brand’s mobile app.

With Business Advantage, you’ll pay no fees for stop payments, incoming wire transfers, or electronic deposits. You’ll also receive up to 500 transactions per month. Though fees are comparatively steep at $29.95 per cycle, you can avoid them in a number of flexible ways, such as spending with a business credit card or maintaining a monthly balance of $15,000. Bank of America also offers merchant and payroll services.

U.S. Bank’s Gold Business Checking Package can manage cash flow with 300 free transactions and $10,000 cash deposits (or 100 free cash transactions) per statement cycle. Small business owners can also get a 50% discount on their first check order up to $100. U.S. Bank offers overdraft protection and an EZ-Switch Kit to help you conveniently transfer a new business account. And, thanks to U.S. Bank’s SinglePoint Essentials, you can keep tabs on check, wire, and ACH accounts in one place.

Best for larger organizations with high transaction volume and complex cash management needs. After opening with a deposit of $25 or more, you’ll have up to 250 free transactions per statement period, with no fees for stop payments, cashier’s checks, wire transfers, or money orders. This offering is supported by Wells Fargo’s Commercial Electronic Office, which offers treasury insights, customized reports, ACH origination, and other online banking services.

If your small business has up to 500 basic transactions monthly and averages a monthly balance of at least $10,000, this business bank account may be for you. You’ll skip the account’s $30 monthly fee if you meet the minimum balance, and you can deposit up to $20,000 each month. And, thanks to CitiBusiness’s Safety Check, your small business checking account will cover overdrafts by transferring funds for your linked savings account or credit line.

With this PNC business bank account, there’s no charge for up to 500 combined transactions per month. Though the $22 monthly maintenance fee is waived for the first three statement cycles, this small business bank account offers more opportunities to offset that regular charge than the company’s Business Checking option. There’s also cash-flow insight and analysis and a business debit card no charge. Earn cash back on everyday expenses with PNC’s Purchase Payback program, and the bank’s Quick Switch Kit makes it easy to change banks.

If your business is expanding quickly, this Citizens account—which offers 500 free check transactions per statement period—may give you a nice boost. Waive the monthly $25 fee by maintaining a $10,000 average daily balance or $35,000 monthly combined balance. Apply for an account in person at one of the bank’s 1,000-plus branch locations.

The Enhanced option of Capital One’s small business banking platform has online banking options like bill pay and mobile banking, as well as perks like unlimited free domestic wires and no-fee digital transactions. Account holders can also send out up to five domestic wires each month for no charge. The $35 monthly fee can be waived with a $25,000 minimum 30- or 90-day average balance. And like other Capital One banking offerings, accounts are FDIC-insured.

A standout among online-only business bank accounts, Novo offers free business checking with no hidden fees. (It will even refund up to $7 in ATM fees each month.) Novo also no longer requires a minimum balance to open an account. ACH transfers are a breeze, but if you need to issue a physical check, they’ve also got you covered. Digital entrepreneurs will appreciate Novo’s easy-to-understand analysis and human-powered customer service department, and, as a digital native, this bank also takes integration seriously, interfacing with Shopify, Stripe, Amazon, and Xero.

If you are a small business owner without a lot of cash to spare, Varo’s proactive platform might be for you. The online bank prides itself on having no hidden costs, as well as waiving monthly maintenance fees, required minimum balance, foreign transaction fees, and ATM fees within the Allpoint network. Depending on the timing, Varo claims that its direct deposit feature can help you get paid up to two days earlier than other banks. And if you want to focus on growing your business’s wealth, opt into Varo’s Save Your Change and Save Your Pay programs.

Designed for small businesses with moderate account activity, Axos Bank charges no monthly maintenance fees and offers unlimited domestic ATM fee reimbursements. You’ll get your first set of 50 checks free, QuickBooks compatibility, up to 60 items per month through Axos’s Remote Deposit Anywhere program. Not only does this small business bank account require no initial deposit or minimum balance requirements, new business owners are currently also eligible for a $400 welcome bonus.

Created exclusively for sole proprietors and single-owner LLCs, EverBank’s Small Business Checking Account offers no monthly maintenance fees and competitive APYs on balances. Opening a business checking account through EverBank (formerly TIAA Bank) isn’t cheap—it requires a $1,500 deposit—but you will be reimbursed for up to $15 in ATM fees, and you’ll receive overdraft protection. Other services include domestic and foreign wire transfers, comprehensive bill pay solutions, ACH transfers, and thorough financial reporting and analysis.

If you’re a growing business with some cash reserves, this Axos business bank account offers competitive interest rates and no monthly maintenance fee with an average daily balance of $5,000 (it’s $10 monthly). Like the bank’s Basic Business Checking account, you’ll receive unlimited domestic ATM fee reimbursements and your first 50 checks free. With the account you’ll also get up to 60 remote deposits per month.

Among regional options, Citizens Bank Clearly Better Business Checking offering is one of the best small business bank accounts in its field, with no maintenance fees and no minimum monthly balance. This small business account includes coverage of 200 check transactions per statement period. Apply in person at one of the bank’s 1,000-plus branches throughout New England, the Mid-Atlantic, and Midwest.

TD is a great option for the small business owner who wants a local bank and has moderate to high monthly transaction volume (meaning up to 500 of them) and cash deposits up to $5,000. Though monthly maintenance fees are $25, they can be waived by meeting a $1,500 minimum balance and a personal checking account can be bundled to meet the requirement. It’s also an ideal choice for those doing regular business in Canada as it’s a subsidiary of the Canadian Toronto-Dominion Bank. One downside: You might be charged a small fee when you use non-TD ATMs.

Start-ups and sole proprietors located in the Southeast with light transaction volume who want great customer service may find just what they’re looking for at Bank OZK. This Little Rock, Arkansas, establishment offers small business bank accounts with 250 combined transactions per statement cycle (there’s a fee of 50 cents after that). Skip the $10 monthly service fee by maintaining a daily balance of $500 or more. Only $100 is required to open this non-interest-bearing account, but you will need to visit a physical branch to apply.

Located in Florida, New York, and New Jersey, Popular Bank’s Popular Checking account is a good fit for small businesses with moderate transaction volume earning up to $250,000 per year. The account includes up to 100 items per month at no cost as well as $5,000 in monthly cash deposits. (It’s 35 cents per hundred dollars deposited after.) Plus, this business checking account will waive the monthly $15 fee with an average monthly balance of $5,000 or more.

Veterans and military service members (as well as their immediate family) who join this national credit union and sign up for the Business Plus Checking program have access to 50 free non-electronic transactions per month (a fee of 25 cents per item applies after that), a competitive dividend rate (earned daily), and a 0.01% APY. This specific tier also has a low $8 monthly maintenance fee. While this program is a great deal for sole proprietors, it allows for unlimited signers, making this a solid option for smaller startup too.

With no minimum balance requirement and no monthly service charge, American First offers its members an astounding 1,000 free monthly transactions and up to $10,000 cash deposits per month through its Totally Free Business Checking account. You’ll also get a free detailed analysis of your account activity, which makes it even easier to keep tabs on your finances. Bring your completed application into an American First Credit Union branch to open your small business account, with just $50 as an opening deposit. Though there are only a few American First branches—all located in California—you can conduct routine transactions at any of 5,000 cooperative credit unions across the nation and have access to 30,000 no-fee ATMs.

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  10. Best Small Business Health Insurance

    Share on BizSugar Email this Article A small business owner easily might become overwhelmed when it comes time to buy health insurance. With so many types of small business health insurance from which to choose, and so many companies offering those benefits, where is one to begin selecting health insurance?

  11. Best Small Business Health Insurance Options

    [1] There's obviously a gap between health insurance coverage and small businesses. Understanding health insurance is the key to eliminating that gap. Make things a little easier on yourself by reading this all-in-one guide to searching for and choosing the best plan for yourself and your employees.

  12. Health Insurance Guide For Self-Employed & Small Businesses

    Medicaid and CHIP The third way to get medical insurance as a self-employed individual or small business owner is to participate in a government program like Medicaid, Medicare or the Children's Health Insurance Program (CHIP). These programs are designed to help low-income families and individuals afford health care.

  13. Best Small Business Insurance Of 2024

    We evaluated the official complaint records of 28 insurers and found that Allianz, Allstate, Clear Blue and Farmers are the best small business insurance companies. Why you can trust Forbes...

  14. Best Small-Business Insurance 2023: Compare Options

    Advertisement Tivly works with over 200 insurance providers, matching you to the one who fits your needs! Get Quote at Tivly.com 888-698-3034 Here are our picks for the best small-business...

  15. What's the Cost of Small Business Health Insurance?

    The average small business owner pays $6,584 a year to cover a single worker's health insurance. For family coverage, that jumps to $16,357. Most employer health plans split the cost of insurance between the company and the worker. Although most small business insurance plans require employers to pay at least half of the total cost of health ...

  16. Best Small Business Insurance Companies of February 2024

    4.8 Get a Quote from Next Best Small Business Insurance Companies of February 2024: Compare Coverage & Prices Best Overall: Next Best for Independent Contractors: Hiscox Best Restaurant...

  17. Get Small Business Health Insurance

    Get Small Business Health Insurance | UnitedHealthcare® Menu Get a customized quote for your small business in just minutes. UnitedHealthcare® can help you understand your small business health insurance options.

  18. How to Pick the Best Health Insurance for Your Small Business

    ICHRA. The ICHRA is a health insurance benefit for companies of all sizes which focuses specifically on reimbursing employees for money spent on health insurance premiums. In this HRA, employers can choose to offer the ICHRA as a standalone benefit, or couple it with their own group health insurance policy. The ICHRA is a new type of HRA that ...

  19. Health Insurance for Small Business Owners: What Are The Best Options

    Small business owners have a few health insurance options, including: Individual Marketplace: If you are the sole employee of your small company, a personal policy purchased via healthcare.gov will suffice. Even better, depending on your location, you may be eligible for tax credits when you buy a health coverage plan.

  20. SHOP Marketplace Healthcare for Small Businesses

    The Small Business Health Options Program (SHOP) Marketplace, created through the Affordable Care Act (ACA), offers affordable and flexible health insurance and dental plan options to small businesses. Coverage and pricing varies based on the plan, so as an employer you can find the best fit for your employees and your business.

  21. The 10 best insurance companies for small businesses

    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...

  22. Small business group health insurance plans

    Small business size and location. "Small group health insurance" generally describes health care and coverage for businesses with 50 or fewer employees. The exact definition of a small group depends on state law. Most of our plans offer national network coverage, so your employees can be located anywhere in the United States.

  23. Best small business insurance companies February 2024

    RLI stands out because it offers small business insurance policies in all 50 states, compared to an average of just 45 states among the other insurers we evaluated. Pros. Available in all 50 ...

  24. Sole Proprietor Business Insurance: Costs And Types You Need

    Best Health Insurance Companies ... That's why comparing quotes from multiple small business insurance companies is a smart approach to finding the best policy. ... Auto-Owners Insurance;

  25. 5 best small business insurance companies in Texas of 2024

    Nationwide is a top-rated company for customer service. In fact, it was J.D. Power's pick as the best overall insurer for customer satisfaction in the 2023 U.S. Small Commercial Insurance Study ...

  26. Study: TX small businesses want lower health care costs, higher ...

    A new survey of the nation's small business owners showed a major challenge to successful operations is trying to provide health care for their employees. The survey by the group Small Business ...

  27. 29 Best Banks for Small Business Owners in 2024

    Some institutions may require deposits to open business bank accounts, but often that fee can be $100 or less. (If you opt for an option with no minimum opening balance, make sure to read the fine ...