Signing up for business insurance through a company like Hiscox is crucial if you have any sort of a business.
It’s not only for large corporations — think small business with one or two employees, you haven’t made any hires, or freelancers working from home.
Business insurance is important in case of things happening beyond your control (it sucks, but sometimes people like to sue) and you’ll want to make sure you and your assets are protected.
The wonderful and equally confusing thing is that there are many types of insurance for your business and for all types of industries.
Considering that Hiscox is one of the largest business insurance suppliers out there — it has over 12 different kinds and is licensed in 49 states (including the District of Columbia and except Alaska).
Not to worry if you’re unsure of where to start — keep reading where we’ll give you an overview of Hiscox, types of small business insurance and what can be a good fit for you.
Offering: Small Business Insurance
Fees: Depends on policy
Promotion: No current promos
What is Hiscox Insurance?
Hiscox is a commercial insurance company that’s been around for over 100 years.
Although it offers many types of business insurance, their small business unit focuses on companies that have up to 10 employees.
Except for Alaska, if you reside in the U.S. you can find some form of coverage.
If you’re worried about whether they’re reputable, don’t. That’s because AM Best, a global credit firm has given Hiscox an ‘A’ rating, which is a national credit rating company focusing on insurance companies
Hiscox Insurance Features
Types of Insurance Hiscox Offers
There are more than 12 kinds of business insurance products through Hiscox, throughout a varying range of industries.
Here are the main types of insurance Hiscox offers:
General Liability Insurance
General liability insurance is basic insurance — you’ll be covered against property injury, bodily injury and personal injury claims against your company.
This is typically the one type of business insurance policy small business get. That’s because in many cases, before signing a contract or to take out a business loan you’ll need to show proof of general liability insurance.
With Hiscox, you’ll also get electronic data liability included — not many insurers do this. Hiscox’s policy also includes seasonal and temporary employees on top of full-time employees.
If there’s a claim against your business, Hiscox will pay you interest on any damages awarded in court plus up to $250 each day the case takes you away from your business.
Professional Liability Insurance
Another one of their most popular insurance products, professional liability insures you against any claims against negligence from your professional services — helpful for people like consultants and IT professionals.
Basically, anyone representing your company (including staff and independent contractors) is protected, even for services conducted overseas.
Business Owner’s Policy
This is what’s known as a package policy that has both commercial property insurance (more on this below) and general liability insurance.
A business owner’s policy is usually less expensive than purchasing each type separately. If you opt for this policy, you can consider customizing add ons depending on the nature of your business.
Commercial Property Insurance
Commercial property insurance protects your brick and mortar property against certain kinds of accidental damage, theft, loss and vandalism.
Basic coverage includes up to $10,000 for portable property, $140,000 for electronic data loss, $10,000 towards equipment,$2,500 for personal effects and up to a year’s worth of loss of income if the damage to your property prevents you from running your company.
Hiscox’s policy is based on replacement cost — you’ll be paid to replace damaged equipment (no deductions for depreciation).
Cyber Security Insurance
If you want to protect your data (especially if it's considered a crucial asset to your business), then you’ll want to think about getting a cyber security insurance policy.
This is especially so if you need to store sensitive data such as credit card information. With this policy, Hiscox will cover the costs to recover lost data and any that's associated with your data breach.
Commercial Auto Insurance
Commercial auto insurance might make sense if your company vehicle or you and your team drive for business regularly.
You can choose hired and non-owned auto liability coverage — it covers use personal vehicles by you and your team and rental cars.
Workers Compensation Insurance
This is different from general liability insurance in that it protects you against the cost of paying for medical expenses of injured workers.
Though there are many places where you can purchase workers compensation, Hiscox, as a private insurer, tends to be quicker at handling claims and can cost less.
How to File a Claim With Hiscox
It’s natural to never want to file a claim even if you’re well protected with small business insurance. The good news is that if you need to, it’s fairly painless with Hiscox.
First, their claims center is available 24/7 (you can also make a claim via phone, mail or email). You can also ask your agent or broker file a claim on your behalf.
Make sure you have some form of documentation of your claim (which can include images of property damage).
After submitting your claim, within one business day you’ll receive a reference number from Hiscox. Then a claims professional from Hiscox will be assigned to your case the next business day.
This person will then contact you about next steps and address any questions you may have, plus work with you to gather any necessary information and check your coverage.
You should be able to get a final decision with 10 to 20 business days after you filed your claim.
What Is Liability Insurance for Small Businesses?
Small business liability insurance is also referred to as commercial insurance or general liability insurance.
If you take out a policy, it protects you against your business in the event that someone outside your company files a claim against you (typically for negligence). In other words, someone or a company wants to sue you.
Think about it: if someone where to sue you, do you have the money to pay for an attorney to right a potentially expensive lawsuit?
What if the case drags on?
Worse yet, what if you’re found responsible and how have to pay up?
That’s where small business liability insurance comes in. If you can qualify for a claim, your insurance policy will cover the cost of legal fees and any potential financial damages you’ll need to pay, up to certain limits.
Basically, you’re protecting your business from financial ruin if there’s been a claim filed against your company.
How Much Does Hiscox Cost?
Because Hiscox is such a large company, it has to cover more overhead costs compared to smaller firms.
However, can offer lower rates because it is such a large company compared to other boutique agencies.
With Hiscox, you’ll be able to see pretty clearly how much your policy can cost — it’s pretty transparent with their rates, even going as far as publishing sample quotes.
Some example rates:
- General liability - an average of $360 per year
- Professional liability - an average of $270 per year
- Business owner’s policy - an average of $480 to $780 per year
Of course, you’ll need to get a quote from Hiscox to get a more accurate example based on your business needs — this includes factors such as your claims history, the size of your business, and what you’re trying to insure.
It’s easy to get an online quote by proving a few pieces of information about your business.
Who Hiscox Insurance is a Good Fit For?
As you already know, Hiscox insurance offers a wide range of insurance products that have comprehensive coverage.
Plus it offers a relatively user-friendly purchase and claims process. It’s clear on their website that Hiscox is aimed towards small businesses who want to be covered based on the needs of their industry.
Hiscox doesn’t want its customers to think that their insurance products are a general, one-size-fits-all type deal even though it’s a large company.
Depending on your profession and industry, it could add different coverages for things like their professional liability policies — you’ll most likely get coverage you will need.
If you’re pretty savvy online and hate doing business admin, Hiscox luckily makes it pretty easy to shop for a business insurance policy.
You have a few options — do it online or through a broker/agent. Sadly, if you’re in Alaska you’ll have to look at other companies, but for the most part you can get coverage through Hiscox if you reside elsewhere in the U.S.
What’s great is that depending on your business cash flow, you can pay for your premium monthly or at once — neither option will cost more than another.
Plus, Hiscox offers a 14-day money back guarantee so if you’re not totally satisfied (assuming you haven’t filed a claim) then you can get your money back.
Again, as a busy business owner, you may not have a ton of time to do some of the necessary admin work.
The good news is that you can modify your business insurance policy online. Plus you can file a claim online 24/7.
The website is user-friendly and customer service representatives are helpful if you have any issues.
Is Hiscox Small Business Insurance Right For You?
As one of the largest insurance companies out there, it’s an organization that has been around for a while and it doesn’t show signs of going away any time soon.
Since launching in 1091, Hiscox has kept up with customer demand, changing with the industry and offering products to match businesses’ needs.
Plus, it offers convenience and decent prices, which should have business owners singing praises.
Even if you don’t go with Hiscox, it’s free to get a quote from them. That way you can see what’s covered and how much it’ll cost.
If you’re ready to sign on the dotted line, you can purchase and manage it online. It doesn’t hurt to head to their website and see what there’s to offer.