Ratings Methodology for
Small-Business Insurance
Small-Business Insurance
Business insurance
NerdWallet's ratings for business insurance companies consider the following factors:
• Financial strength
• Consumer complaints
• Shopping experience
• Customer service
The best small-business insurance makes it easy for business owners to get coverage and support and get back to running their businesses. These insurers’ financial strength and customer satisfaction indicate reliability in times of trouble. They also provide straightforward quote, purchase and claims processes and make it easy to contact customer service.
Data collection and review process
We collect data points for each insurer from its public-facing website and from company representatives, public filings and state regulator data. These data points are then compared against one another and against NerdWallet's standards for good insurance companies to determine a star rating.
Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. Final star ratings are presented on a scale of one to five stars, where a one-star score represents "poor" and a five-star score represents "excellent."
Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. Final star ratings are presented on a scale of one to five stars, where a one-star score represents "poor" and a five-star score represents "excellent."
The reviews team
The writers and editors behind our business insurance reviews are small-business specialists who have had their work featured by The Associated Press, The Washington Post, Entrepreneur, MarketWatch and many other publications. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.
Our small-business editorial team also covers business loans, business credit cards, business bank accounts and business software.
Our small-business editorial team also covers business loans, business credit cards, business bank accounts and business software.
Rating specifics
Our star ratings are weighted based on our editorial and professional opinions. We use the following weightings when rating business insurance companies:
• Financial strength (33.3%)
• Consumer complaints (33.3%)
• Shopping experience (16.7%)
• Customer service (16.7%)
• Financial strength (33.3%)
• Consumer complaints (33.3%)
• Shopping experience (16.7%)
• Customer service (16.7%)
Financial strength
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.
Consumer complaints
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.
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.
Shopping experience
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.
Customer service
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.