Chubb Small-Business Insurance Review 2021

Chubb is a well-known insurance provider that offers a variety of business insurance products.
Priyanka PrakashSep 3, 2020

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One of the best ways to protect your company is by buying the right business insurance. Business insurance protects your company from unexpected situations, such as natural disasters, theft and product defects. Without insurance, small-business owners might lose profits or be forced to shutter their doors completely.

Chubb is a well-known name in the insurance space. It's the world’s largest publicly traded property and casualty insurer, offering several types of personal and business insurance. More than half of Chubb’s revenue comes from commercial insurance, and it offers several products specifically designed for small businesses. We’ll cover what products Chubb offers, pros and cons, rates and best alternatives.

Chubb small-business insurance fast facts

Business insurance products offered

  • General liability insurance.

  • Commercial property insurance.

  • Business owner's policy, or BOP (combines general liability and property insurance).

  • Professional liability.

  • Product liability and inland marine insurance.

  • Commercial auto insurance.

  • Workers' compensation.

  • Environmental liability insurance.

  • Cyber insurance.

  • Specialty casualty insurance.

  • Umbrella and excess liability (offers coverage that goes beyond a primary insurance policy).

  • Surplus lines insurance (offers coverage for hard-to-place industries and risks).

A.M. Best financial strength rating: A++ (highest rating)

A.M. Best is a credit rating agency that assigns letter grades to insurance companies based on their financial strength and ability to pay claims. A.M. Best ratings are commonly used within the insurance industry. Higher ratings signify more financial stability.

Chubb insurance services and features

  • Online quote and purchase (available for general liability, professional liability, BOP and cyber insurance).

  • Purchase through independent agent or broker.

  • BOP and general liability available in all 50 states (availability of other insurance products varies).

  • Customizable coverage for different industries.

Who should use Chubb?

Chubb is a good option both for small-business owners who want to buy insurance through an agent, as well as for business owners who prefer an online experience. Independent insurance agents can help you get a custom quote for your company. Alternatively, you can buy four Chubb products online: general liability, professional liability, BOP and cyber insurance.

This insurer is also a good option for newer industries or businesses that have had trouble finding coverage elsewhere. Chubb offers a variety of different insurance products, and some products are targeted at riskier, newer or hard-to-place industries.

Main products offered

As one of the largest 10 insurers in the world, Chubb has the ability to tap into multiple markets and insure all types of industries and risks. Here are Chubb’s main business insurance products:

General liability insurance

General liability insurance is basic liability insurance that protects small businesses from legal claims of bodily injuries or property damage. For example, general liability insurance is what covers your business if a customer slips and falls at your shop. Similarly, if you accidentally damage a neighboring business owner’s window while hanging up a sign in your shop, that’s where general liability insurance kicks in.

Commercial property insurance

Property insurance covers the assets that are most essential to your business, such as your equipment, inventory, and electronic data. If these assets are damaged by a fire, theft, vandalism, or other types of accidental damage, commercial property insurance will pay for their restoration or replacement. This is essential coverage for brick-and-mortar businesses and online businesses.

Business owner's policy

Chubb offers a business owner's policy (BOP) that combines general liability insurance and commercial property insurance in one policy. Bringing both coverages under one policy typically helps you save on premium costs. You can add on additional coverages, like data breach insurance or equipment breakdown insurance, that are important for your company.

Professional liability insurance

Professional liability insurance, or errors and omissions insurance, protects professionals and service businesses against negligence claims. Negligence claims are common, and any mistake you make on the job could become the subject of a lawsuit.

Chubb offers industry-targeted professional liability insurance, as well as a miscellaneous professional liability policy that suits a variety of service businesses. Doctors and lawyers are required to carry professional liability insurance, but any service professional should carry this coverage.

Product liability insurance

Product liability insurance is a must-have for any business that manufactures, repairs or sells a product. This insurance covers claims arising from manufacturing, design and marketing defects.

Chubb offers product liability insurance that’s customized for businesses at various stages of the supply chain. Its ESIS ProClaim team will even help you prevent claims by recommending product safety and quality control processes, all part of a holistic product liability strategy. It also provide related product recall insurance.

Commercial auto insurance

Commercial auto insurance is specially designed to cover claims of bodily injury or property damage that happen when you’re using a business vehicle. Most Chubb commercial auto policies also insure theft, weather damage or vandalism against a business vehicle.

Workers' compensation insurance

Although the other insurance products listed so far are optional, workers' compensation is a legal requirement for most businesses with employees. Workers' compensation insurance pays for medical expenses and lost income when your employees get hurt or sick on the job. Chubb offers workers comp coverage for small businesses with one or more employees and up to $30 million in annual revenue.

Pros and cons of Chubb small business insurance

Small business insurance is a crowded space, with many options to buy coverage for your business. If you’re considering Chubb for your business insurance needs, it’s important to know the advantages and disadvantages of working with them.

Here’s a rundown of the pros and cons of Chubb small business insurance:

Chubb pros

  • Wide range of insurance products.

  • Business owner's policy offers cost savings by combining general liability and property insurance.

  • Home business discount.

  • Startup friendly.

  • Offers surplus lines insurance through its subsidiary Westchester. Surplus lines insurers sell insurance to businesses that have been declined by standard insurers.

  • In-house claims handling expertise.

  • JD Power and Associates ranked Chubb third in a rating of large commercial insurers.

Chubb cons

  • Only general liability, professional liability, BOP and cyber insurance are available for end-to-end online service. That’s just a small fraction of Chubb’s insurance products. However, you can pay premiums and get proof of insurance online.

  • Chubb doesn’t publish average insurance costs. The only way to get a cost estimate is to provide detailed information about your business and get a quote.

Chubb business insurance rates

Like most big insurance companies, Chubb doesn’t publish rates publicly. Insurance costs vary significantly based on the business and risk that’s being insured, so much like getting a business loan, an insurer needs to see a bunch of details about your business before they can quote you a monthly premium.

That said, Chubb is one of the largest insurance companies in the U.S. Large insurers have access to multiple markets and can absorb claim payouts more easily, so it's more likely than a boutique agency to give you a good rate.

To give you an idea of costs, here are average annual premiums for different types of business insurance:

  • General liability: $400 to $600 per year.

  • Commercial property insurance: $500 to $3,000 per year.

  • Professional liability: $400 to $800 per year.

  • Product liability insurance: $0.25 per $1,000 in product sales.

  • Commercial auto insurance: $1,100 per year to insure one business vehicle.

  • Workers' compensation insurance: $0.75 to $2.74 per $100 in employee wages.

Unless otherwise noted, this cost data comes from Insureon, an insurance comparison site that works with large insurers like Chubb.

Filing a claim with Chubb

Chubb's claims process is similar to other major insurance companies. As soon as an event occurs which might be covered by your policy, you should file a claim with Chubb. If appropriate, you should also file a police report and take photos of any damaged property.

You can file a claim on Chubb's online claim reporting application or by phone, fax or email. Within two business days, Chubb will acknowledge the receipt of your claim and assign you a claim number. You can then upload supporting documents online or send them by fax or postal mail.

Within five business days, Chubb will clarify whether your policy covers the event in question. The exact timing will depend on the complexity of your claim and the types of policies you have with Chubb and other insurance companies. Once coverage is confirmed, Chubb will then make arrangements to issue your claim payment.

Chubb alternatives

CoverWallet

Unlike Chubb, CoverWallet is not an insurance company. CoverWallet is an insurance comparison platform. Provide some financial information about your business, and it’ll let you compare policy terms and rates from multiple A-rated insurance companies. Think of CoverWallet as your own personal online broker.

When you buy business insurance through Chubb, you’re buying a policy straight from the insurance company. The benefit of doing this as that you work with the same sales reps throughout the process, and they become familiar enough with your company that they can recommend a policy that’s tailored for you.

The downside is that you don’t have anything to compare them to. Different insurance companies have an appetite for different types of risk and charge different rates for different businesses. Using an insurance comparison site like CoverWallet lets you uncover those differences and choose the most comprehensive business coverage at the best value. Chubb partners with CoverWallet, so you’ll be able to compare Chubb head to head against other insurers on its site.

Hiscox

Hiscox is a large insurance company similar to Chubb, with an A rating by A.M. Best. Many insurance comparison sites and smaller insurers team up with Hiscox to deliver insurance. Hiscox has been around since 1901, so it has hundreds of years of experience with commercial insurance and is equipped to handle any industry’s insurance needs.

Similar to Chubb, Hiscox offers a wide range of business insurance products and an online purchase option. If you prefer to use a broker, general liability, property, professional liability and cyber insurance are available through independent brokers as well.

Next Insurance

While Chubb utilizes agents and an online option, Next definitely emphasizes the latter: 90% of Next Insurance policies are sold without any human interaction. Currently, Next sells three business insurance products: general liability, professional liability and commercial auto insurance (a workers' compensation product is coming soon).

Next Insurance keeps everything online and in-house, from applying for a policy to premium payment to claims filing. You can manage your policy and get proof of insurance from your Next account. Since everything is done online, Next has less overhead than an insurer like Chubb and might be able to offer your company better rates on insurance. Large insurance companies like Chubb often assess administrative fees or cancellation fees, but Next charges no fees.

This article originally appeared on Fundera, a subsidiary of NerdWallet.