Ratings Methodology for Small-Business Insurance

Financial strength (33%)

These ratings indicate an insurer’s ability to pay future claims. We base them on assessments from AM Best, the leading credit rating agency for the insurance industry. A higher rating from AM Best means a company is better positioned to meet its financial obligations even after an economic downturn or natural disaster. A lower rating generally doesn’t offer the same level of confidence to policyholders. If a company doesn’t have a financial strength rating with AM Best, then it isn’t eligible for NerdWallet’s overall star rating.

Customer complaints (33%)

These ratings are based on complaints to state regulators relative to a company’s market share. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2022-2024. The NAIC calculates a complaint index each year for each insurance company and subsidiary, measuring its share of total complaints relative to its market share based on total premiums. NerdWallet uses these data to calculate a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Our star ratings consider NAIC complaint ratios for general liability insurance and commercial property insurance. We do not currently include NAIC complaint ratios for workers’ compensation or commercial auto insurance.

Customer service (17%)

We rate insurers according to their customer service availability during the purchase process, during the claims process and on an ongoing basis. Our methodology also awards higher scores to insurers who offer consumer-friendly features, like digital access to a certificate of insurance and the ability to add an additional insured.

Shopping experience (17%)

Ideally, small-business owners should be able to buy all the insurance coverage they need from the same provider or agent at once. Our methodology gives higher scores to insurers who offer all the most common business insurance coverages — including business owner’s policies, workers’ compensation insurance and commercial auto insurance — in a large number of states. It also gives higher scores to insurers who allow customers to get quotes and purchase policies online, or work with an independent agent over a captive one.