USAA Business Insurance Review 2023: Pros, Cons, Coverage Options

USAA business insurance

United Services Automobile Association, best known as USAA, limits its membership to U.S. military members and veterans, precommissioned officers, and their spouses as well as their children.

If you're eligible to buy coverage from USAA, though, its business insurance stacks up well — the company earned high marks from NerdWallet for its financial strength, online policy management features and offering the business insurance policies most customers need.

Eligibility is determined on a case-by-case basis, so it’s best to contact USAA to see if you qualify for membership.

USAA business insurance pros and cons

Business insurance products available through USAA

USAA members can purchase a business owner's policy, or BOP, along with:

• General liability insurance.

• Workers’ compensation insurance.

• Professional liability insurance.

• Cyber liability insurance.

• Umbrella insurance.

• Commercial auto insurance.

Business owner's policy (BOP)

USAA’s BOP bundles three common types of insurance for convenience: General liability, commercial property insurance, and business income insurance.

General liability insurance

General liability insurance, also called business liability insurance, protects you and your assets when you or your company are responsible for paying someone’s medical expenses, attorney fees or damage.

Business liability policies typically exclude employee injuries, vehicle-related incidents and intentional acts of harm, which require insurance protection under different products.

General liability insurance is included in USAA’s business owners’ policy, or can be purchased as an individual product.

Commercial property insurance

A BOP from USAA also includes commercial property insurance, which covers expenses related to your physical place of business. This coverage protects your building, inventory, furniture and equipment if it is damaged or lost, as well as any signage, storage sheds, landscaping and fences.

Depending on the incident, as well as policy coverage, your commercial property insurance also could include property owned by others.

Business income insurance

Business income insurance, also called business interruption insurance, is the third component of USAA’s business owners’ policy. Business income insurance pays out when your business operations are disrupted by circumstances out of your control. You can use business income insurance to pay for lost revenue, payroll, taxes, and more.

» MORE: How to get business insurance

Workers’ compensation insurance

Workers' compensation insurance is required in many states if your business employs contractors and/or employees. This coverage can cover medical expenses and lost wages for workers who sustain work-related illnesses or injuries.

P​​rofessional liability insurance

If your professional service or advice goes awry, USAA professional liability insurance protects your small business from claims of negligence or financial harm. This type of insurance is also known as errors and omissions insurance, or E&O.

USAA professional liability insurance can be added on to any business insurance policy.

Cyber liability insurance

As cybercrime increases each year, cybersecurity insurance helps businesses cover expenses and costs associated with digital data breaches and other cyber breaches.

Umbrella insurance

Umbrella insurance provides an additional safety net of financial coverage. If your company is required to pay for a catastrophic claim, an umbrella policy kicks in once you reach the liability limit on another policy.

Commercial auto insurance

Applicants seeking USAA commercial auto insurance will be connected with insurance providers through USAA’s partner network.

Commercial auto coverage can include up to five standard components: Liability insurance, medical coverage, comprehensive, collision and uninsured or underinsured motorist coverage.

USAA lists several scenarios in which a small business could benefit from commercial insurance coverage:

• You use your vehicle for business.

• You have an ad for your business on your personal vehicle.

• You have fleet vehicles or a trucking business.

• You rent vehicles for your business.

If you are a USAA member who drives for a delivery or rideshare company like Uber or Lyft, you can add rideshare insurance to a personal auto insurance policy instead of purchasing commercial auto insurance.

Should you purchase USAA business insurance?

USAA may be a good fit for your business if:

• You qualify for USAA membership. Typically, this is limited to members of the U.S. military, veterans, precommissioned officers, their spouses and their children.

• Your insurance needs aren't too complex. USAA doesn't offer specialized types of coverage like directors and officers insurance, employment practices liability insurance or liquor liability insurance — you'll need to shop elsewhere for those coverages.

• You want to manage your policy online. You can access your certificate of insurance online, and USAA told NerdWallet that you'll be able to add an additional insured and file claims online beginning in 2023, though those options aren't available as of this writing.

» MORE: Business insurance companies: How to compare options

Alternatives to USAA business insurance

If USAA isn't the right fit for your business — or you don't qualify for USAA membership — consider the following alternatives.