Best Small Business Insurance in Minnesota 2023: Outstanding Picks

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Best Small Business Insurance in Minnesota

Starting a small business in Minnesota can be a rewarding and fulfilling experience, but it’s essential to protect your investment with the right insurance coverage. As you start an LLC in Minnesota, it’s crucial to research and choose the best small business insurance that fits your needs. 

With many insurance providers offering a wide range of coverage options, selecting the best small business insurance can take time and effort. But fear not! LLCBase is here to help you navigate this critical aspect of running a successful business. In this guide, we’ll introduce you to the best small business insurance in Minnesota for 2023, highlighting their unique offerings, eligibility criteria, financial strength, and customer satisfaction. 

Best Small Business Insurance

What is a Business Insurance

Business insurance refers to a set of insurance policies designed to protect a business and its owners from potential financial losses and liability risks associated with operating a business. These policies cover various aspects of the business, safeguarding it from unforeseen events such as property damage, lawsuits, employee injuries or illnesses, and interruptions in business operations.

The diverse range of business insurance policies in Minnesota allows business owners to customize their coverage to suit their industry’s specific needs and potential risks. By investing in the appropriate business insurance policies, owners can focus on growing their business confidently, reassuring that they are protected against any unforeseen challenges that may arise during their entrepreneurial journey.

Small Business Insurance Coverage

If you want to start a business in Minnesota and apply for business insurance, remember that it only covers the following:

  • Third-party bodily injury and property damage resulting from your business operations
  • Professional errors and omissions
  • Damage to your business property
  • Employee injuries and illnesses
  • Auto accidents involving your business vehicles
  • Cyberattacks and data breaches
  • Loss of income due to a covered event
  • Claims related to wrongful termination, discrimination, and harassment

On the other hand, small business insurance generally does not cover the following:

  • Intentional acts of damage or harm
  • Damage caused by normal wear and tear
  • Floods and earthquakes (unless specifically added to your policy)
  • Employee dishonesty or criminal activity
  • Losses resulting from business activities not disclosed to the insurance provider

10 Best Small Business Insurance Providers in Minnesota

Choosing the right insurance provider is critical for any small business owner who wants to start a business; perhaps you want to start an insurance company in Minnesota. Minnesota is home to a thriving entrepreneurial environment, making it essential for businesses to have comprehensive insurance coverage. To help you make an informed decision, we have compiled a list of Minnesota’s best small business insurance providers.

1. Allianz

Allianz is a global insurance and financial services provider with a strong presence in over 70 countries. They offer various insurance coverages, including general liability, professional liability, commercial property, and workers’ compensation insurance. Allianz is recognized for its extensive coverage options, global expertise, and strong financial rating, making it a reliable choice for small businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Allianz

2. Allstate

Allstate is a well-known national insurance provider that offers a variety of customizable insurance policies for small businesses with up to 500 employees. Their coverage options include general liability, commercial property, and workers’ compensation insurance. Allstate is known for its personalized service through local agents and online policy management tools, making it a convenient choice for small business owners.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Customizable coverage options
  • Local agents for personalized service
  • Online policy management tools
Cons
  • Limited industry-specific coverages
  • Mixed customer service reviews
Apply to Allstate

3. Clear Blue Insurance

Clear Blue Insurance is a specialty provider focusing on niche and hard-to-place risks. They offer tailored coverage options for small businesses, including general liability, professional liability, and commercial property insurance. With a strong financial rating and a commitment to underwriting unique risks, Clear Blue Insurance is an ideal option for businesses looking for customized insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A- (Excellent)

Pros
  • Specializes in niche and hard-to-place risks
  • Tailored coverage options
  • Strong financial rating
Cons
  • Limited online resources for policy management
  • Not well-known in the market
Apply to Clear Blue Insurance

4. Farmers Insurance

Farmers Insurance is a national insurance provider offering a wide range of coverage options for small businesses with up to 500 employees. Their policies include general liability, commercial property, workers’ compensation insurance, and industry-specific coverages. Farmers Insurance is known for its local agents who provide personalized service and its commitment to meeting the needs of various industries.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Local agents for personalized service
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to Farmers Insurance

5. Acuity

Acuity is a regional insurance provider offering comprehensive coverage options for small businesses. Their policy offerings include general liability, professional liability, commercial property, and workers’ compensation insurance. Acuity is recognized for its excellent customer service reputation, online policy management tools, and strong financial rating, making it a reliable choice for small business owners.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Online policy management tools
Cons
  • Not available in all states
  • Limited industry-specific coverages
Apply to Acuity

6. CNA

CNA is a leading insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and industry-specific coverages, making them a solid choice for businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to CNA

7. Frankenmuth Insurance

Frankenmuth Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their excellent customer service reputation and personalized service through local agents, making them a reliable choice for small businesses in the Midwest.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Local agents for personalized service
Cons
  • Limited availability outside the Midwest
  • Limited online resources for policy management
Apply to Frankenmuth Insurance

8. Travelers

Travelers is a national insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are recognized for their strong financial rating and online policy management tools, making them a convenient choice for small business owners seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Average

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Online policy management tools
Cons
  • Mixed customer service reviews
  • Limited industry-specific coverages
Apply to Travelers

9. Chubb

Chubb is a global insurance provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and global expertise, making them a reliable choice for businesses seeking extensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Chubb

10. Westfield Insurance

Westfield Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and personalized service through local agents, making them a reliable choice for small businesses in the Midwest and Northeast.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Local agents for personalized service
Cons
  • Limited availability outside of the Midwest and Northeast
  • Limited online resources for policy management
Apply to Westfield Insurance

How to Apply for Business Insurance in Minnesota

Securing adequate insurance coverage is crucial to safeguarding your Minnesota small business against potential risks and liabilities. Whether you’re just starting or growing your enterprise, follow this step-by-step guide to applying for small business insurance in Minnesota confidently.

Step 1: Assess Your Insurance Needs

Analyze the specific risks your Minnesota business may face, including potential lawsuits, property damage, worker injuries, or cyber threats. Consider the following types of insurance to help you determine which coverage suits your needs:

  • General Liability Insurance
  • Property Insurance
  • Workers’ Compensation Insurance
  • Professional Liability Insurance
  • Cyber Liability Insurance
  • Business Interruption Insurance
  • Commercial Auto Insurance

Step 2: Research Minnesota Insurance Requirements

Each state has unique requirements for business insurance. Research Minnesota insurance regulations and mandatory coverages, such as workers’ compensation or commercial auto insurance, if applicable.

Step 3: Compare Insurance Providers

Create a list of reputable insurance providers licensed to operate in Minnesota. Compare their coverage options, limits, deductibles, and premiums to find the policy that best addresses your risks and fits your budget.

Step 4: Gather Necessary Documents

Before submitting your application, gather any necessary documents, including:

  • Business name and contact information
  • Federal Employer Identification Number (EIN)
  • Description of your business operations
  • Number of employees
  • Estimated annual revenue
  • Property details (if applicable)
  • Vehicle information (if applicable)

Step 5: Contact an Insurance Agent or Broker

Reach out to an insurance agent or broker to discuss your coverage needs and obtain insurance quotes. An agent can help you navigate the application process and provide guidance on obtaining the best protection for your Minnesota small business.

Step 6: Submit Your Application

Fill out the application form provided by your chosen insurance provider. Carefully input the required information and attach any requested documentation. Be accurate and thorough in your responses to ensure you receive the appropriate coverage.

Step 7: Review and Sign the Policy

Once approved, thoroughly review your insurance policy to ensure it accurately reflects the coverage you discussed with your agent or broker. Pay attention to any clauses, exclusions, or limits. If satisfied, sign the policy and make the initial premium payment.

FAQs

What types of small business insurance are available in Minnesota?
Minnesota offers a range of small business insurance policies, including general liability, professional liability, property, and workers’ compensation insurance.
Do Minnesota businesses really need insurance?
Yes, any business operating in Minnesota should have some form of insurance to protect themselves from financial loss due to unexpected events or lawsuits.
How much does small business insurance typically cost in Minnesota?
The cost of small business insurance in Minnesota depends on a variety of factors, including the size of the business, the industry it operates in, and the specific coverage needed.
What is general liability insurance, and why is it important for Minnesota businesses?
General liability insurance provides coverage for bodily injury, property damage, and advertising injury claims that may arise from the operation of a business in Minnesota.
What industries in Minnesota commonly require professional liability insurance?
Many professional services providers in Minnesota may require professional liability insurance, including architects, lawyers, doctors, accountants, and various other consulting services.
Is commercial property insurance essential for small businesses in Minnesota?
Yes, commercial property insurance protects a Minnesota business’s physical assets, such as buildings, equipment, and inventory.
What is a BOP, and why is it recommended for small businesses in Minnesota?
A BOP, or business owner’s policy, is a package policy that combines general liability and property insurance into one convenient policy, which may be a cost-effective option for small businesses in Minnesota.
Do Minnesota businesses need workers’ compensation insurance?
In most cases, any Minnesota business with employees is required by law to carry workers’ compensation insurance, which provides coverage for medical expenses and lost wages from work-related injuries.
What is an umbrella insurance policy, and who may need it in Minnesota?
An umbrella insurance policy provides additional protection above and beyond a business’s liability coverage limits, which may be beneficial for Minnesota businesses facing higher levels of liability exposure.
What other insurance type may be essential for a small Minnesota business?
Cyber liability insurance may be an essential coverage type for Minnesota businesses that store digital data and operate online or utilize electronic payment solutions.
Are there any types of insurance that are exclusive to Minnesota businesses?
There may be specific natural disaster or weather-related coverages that are essential for Minnesota businesses, such as coverage for extreme cold damage, hail damage, tornado damage or flooding.
How can a small business owner in Minnesota determine the right insurance coverage for their specific needs?
Business owners should work with an experienced insurance agent or broker in Minnesota who can help assess specific coverage needs and recommend appropriate policies.
Are there any local insurers in Minnesota that specialize in small business insurance?
Yes, several insurance companies in Minnesota specialize in providing insurance for small businesses, including Federated Mutual Insurance Company, The Main Street America Group, and Secura Insurance Company.
Can business owners in Minnesota buy a policy directly from an insurance carrier, or do they need a broker?
In most cases, a business owner in Minnesota can purchase insurance policies directly from an insurance carrier, but consulting a broker can provide better coverage options and expert guidance.
How does a business filing structure affect its insurance requirements in Minnesota?
The type of filing structure chosen in Minnesota (sole proprietorship, partnership, LLC, corporation) often dictates which types of insurance are required, so it is vital for business owners to consult a professional knowledgeable about Minnesota’s requirements of each options.
Why is it important to update small business insurance policies regularly in Minnesota?
Coverage needs may change as a Minnesota small business grows or changes, so regular policy updates are essential to ensure the right protection level are maintained.
Are there any unique tax benefits for Minnesota businesses paying for insurances?
In some cases, small businesses located in Minnesota may be able to deduct insurance-related expenses as a business expense for tax purposes, or qualify for State assisted programs.
Can a small business in Minnesota adjust its insurance policy coverage limits up and down as needed?
Yes, it is common for Minnesota small businesses to increase or decrease insurance policy coverage limits as priorities, circumstances, and coverage requirements change.
Can Minnesota businesses get multiple coverage types with a single service provider?
Yes, many insurance providers in Minnesota offer a wide range of coverage options, allowing a business to customize a policy that suits specific needs or providing cost benefits for package services.
What should a MN business do if an incident occurs that requires coverage?
If a situation arises that a Minnesota business believes to be covered under its current insurance policies, it is a smart move to contact the specific carrier or broker immediately to ascertain eligibility, expectations and how to proceed.
Does workers’ compensation insurance in MN differ based on industry?
Yes, MN workers’ compensation insurance may have varying coverage or different entitlements based on the industry type and as per the coverage amount set by industry-specific laws.
Can a Minnesota small business get coverage for financial losses due to business interruption?
Yes, a business can get coverage for business interruption or loss of income under a qualified coverage option for costly substance incidents such as fire, storm, or other covered hazards.
Will a Minnesota insurer allow a business owner, driver, or employee with adverse driving records coverage?
Yes, in Minnesota, insurance carriers cannot dismiss providing coverage for their customers applying for business insurance for racing convictions, tickets, or incidents that are proved conviction-free. However, the policy premium may spike up at an academic rate.
Are succession planning strategies and equality management insurance tips the same?
No. While Succession planning strategy deals with planning for the objective with regards to transference of business ownership very fast, an equity management insurance policy ensures smooth recovery in case of reasonable amounts of stake acquisition over time or instances of partner separation.
As a MN employer, can you choose to self-insure instead of following the Minnesota workers’ compensation guidelines?
Yes, some forms of companies stand eligible to verify their work capacity without achieving current benefit eligibility state standards, and may self-insure up to certain financial limits.
How long must MN business owners maintain insurance policy records?
Business owners should maintain all insurance-related documents and policy details for matching audit records for up to 7 years to attend them due to probable claims and tax purposes.
Can a business owner in Minnesota package insurance add-ons based on profitability uncertainties?
Added add-ons coverages can safeguard policies based on profitability coverage uncertainties for some Minnesota-based service small businesses. Some possible add-ons might include terrorism policies, higher liability coverage issuance, cyber liability insurance guidelines, data transformation insurance, and industry-specific coverage add-ons like pollution insurance for production sites.
In case of employee-caused damages or desecrations, what employer insurance policy will MN provide to mitigate for it?
Always be sure to follow Industry-specific labor hire guidelines for property liability insurances designed towards handling damage controlled considerations caused by employees, all workers immediately will benefit through the means of employee theft, burgling, or vandalism approval suits for damage outside confining property.
Does every business in Minnesota that operates without employees require worker’s compensation insurance coverage?
A startup oriented to perform comprehensive services or carry out methods classified procedures, where all employmees within the organization are independant consultants obliged to getcovered themselves for occupational injuries under personal workers or procedures or offering the service utilization in Minnesota mini-business that can knowingly make known rejections from benefit rights upon circumstances which ensure consistency that with standard behavior and accepted financial reimbursements. In case the age bracket diverges from 16-20 and their parents aren’t officially enlisted as the successful developers, then spousing moving participant’s insurance regulations become vibrant.

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Conclusion

Selecting the best small business insurance for your Minnesota LLC is a crucial step in protecting your investment and ensuring the long-term success of your business. Take the time to research each provider, evaluate their eligibility criteria, complaint level, and financial strength rating, and consider the pros and cons of each option. By doing so, you can make an informed decision and choose the insurance coverage that best meets your needs and protects your business in The North Star State. Visit LLCBase for more information about starting an LLC in Minnesota.

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