Next Insurance vs CNA Pricing: A Comprehensive Guide for Small Business Owners

Choosing the right business insurance can feel overwhelming, especially when comparing a digital-first carrier like Next Insurance against an established giant like CNA. For small business owners across the United States, understanding how these two insurers price their policies is crucial to making an informed decision that protects your business without breaking the bank.

Understanding the Two Players

CNA is the seventh largest commercial insurer in the United States as of 2018, with a history dating back to 1897 [1].

CNA provides property and casualty insurance products and services for businesses and professionals in the U.S., Canada, and Europe. The company operates through traditional agent networks and offers comprehensive coverage options for businesses of all sizes [1].

Next Insurance, by contrast, represents the new wave of digital insurance carriers. Founded in 2016, the company focuses exclusively on small businesses, offering instant online quotes and policies tailored to specific industries like contractors, consultants, fitness trainers, and retail shops. This fundamental difference in business models significantly impacts how each company prices its policies.

Pricing Models: Traditional vs Digital

The most striking difference between CNA and Next Insurance lies in their pricing approaches. CNA typically works through independent agents and brokers who assess your business needs and provide customized quotes. This traditional model involves human underwriters reviewing your application, which can take days or even weeks to finalize pricing.

Next Insurance leverages technology to automate much of the underwriting process. By answering questions online about your business type, revenue, location, and coverage needs, you can receive instant quotes and purchase policies within minutes. This streamlined approach generally translates to lower operational costs, which can mean more competitive premiums for straightforward, low-risk businesses.

Coverage Types and Cost Considerations

Both insurers offer essential small business coverages, but their pricing structures differ significantly. Let's examine the main policy types:

General Liability Insurance

General liability insurance protects your business if someone is injured on your premises or if you damage a customer's property.

In a survey by the National Federation of Independent Business (NFIB), 30 percent of small business owners ranked the cost and availability of liability insurance as their second most important insurance concern [2].

Next Insurance typically offers general liability policies starting around $20-$40 per month for low-risk businesses like consultants or photographers. CNA's pricing for similar coverage often starts higher, typically $50-$100+ per month, though this includes access to dedicated agent support and potentially broader coverage options.

For businesses seeking comprehensive protection, a business owners policy bundles multiple coverages together.

A business owner's policy - sometimes called a BOP - is a "package" product that typically includes property, business interruption/continuation and liability insurance. For many small businesses, purchasing a BOP can be a less costly option than buying individual policies [2].

Professional Liability Insurance

For service-based businesses, professional liability insurance (also known as errors and omissions insurance) is essential. This coverage protects against claims of negligence, mistakes, or failure to deliver promised services.

Next Insurance prices professional liability based on your specific profession and revenue, with policies often starting around $30-$60 monthly for consultants and freelancers. CNA's professional liability policies typically command higher premiums, often $100-$300+ monthly, but may offer higher coverage limits and more specialized endorsements for complex professional services.

Workers' Compensation

If you have employees, workers' comp insurance is mandatory in most states.

All major commercial lines also recorded premium growth, except for workers' compensation, where profitability and increased competition brought rates down [3].

CNA has extensive experience in workers' compensation and can handle complex, multi-state operations. Their pricing reflects this expertise and comprehensive service, often making them more expensive for straightforward cases but potentially more competitive for businesses with unique risk profiles.

Next Insurance offers workers' compensation in select states with simplified online purchasing. Their pricing tends to be more transparent and often lower for businesses with clean safety records and standard employee classifications.

Cyber Insurance

In today's digital landscape, cyber insurance has become increasingly important.

Data from a global insurance broker indicate its clients' take-up rate (proportion of existing clients electing coverage) for cyber insurance rose from 26 percent in 2016 to 47 percent in 2020 [4].

Industry sources said higher prices have coincided with increased demand and higher insurer costs from more frequent and severe cyberattacks. In a recent survey of insurance brokers, more than half of respondents' clients saw prices go up 10–30 percent in late 2020 [4].

CNA offers robust cyber insurance policies with extensive risk management resources, though pricing can be substantial—often $1,000-$5,000+ annually depending on your business size and data exposure. Next Insurance provides more basic cyber coverage at lower price points, typically $500-$2,000 annually, suitable for smaller businesses with limited digital footprints.

Factors That Influence Pricing

Both insurers consider similar risk factors when calculating premiums, though they weigh them differently:

Industry and Business Type:

Insurers in areas prone to extreme weather such as hail, wind storms and hurricanes, or high-traffic, high-theft locations typically charge higher rates. High-risk industries like roofing or construction will pay more than low-risk businesses like consulting firms [2].

Location: Your business location significantly impacts pricing.

The region in which your business operates affects premiums. Urban areas with higher crime rates or litigation-prone states like California or New York typically see higher premiums from both carriers [2].

Revenue and Payroll: Both insurers base pricing partly on your annual revenue and payroll figures.

Liability insurance premiums are typically linked to a business' sales and payroll estimates provided prior to policy inception [2].

Claims History:

A high past-claims history can increase insurance costs, while choosing a plan with higher than average deductibles can lower premiums. CNA may be more willing to work with businesses that have past claims but will charge accordingly. Next Insurance's automated underwriting may decline coverage or charge significantly higher rates for businesses with poor claims histories [2].

The True Cost Comparison

When comparing Next Insurance and CNA pricing, consider these real-world scenarios:

Scenario 1: Solo Consultant

Next Insurance: $30-$50/month for $1M general liability + professional liability
CNA: $100-$150/month for similar coverage through an agent

Scenario 2: Small Retail Shop (3 employees)

Next Insurance: $150-$250/month for general liability, property, and workers' comp
CNA: $300-$500/month for comprehensive BOP with workers' comp

Scenario 3: Mid-sized Contractor (15 employees)

Next Insurance: May not offer coverage or prices become less competitive
CNA: $2,000-$5,000/month for comprehensive coverage including high liability limits

These examples illustrate that Next Insurance typically offers better value for very small, straightforward businesses, while CNA's pricing becomes more competitive as business complexity increases.

Hidden Costs and Value Considerations

Price alone doesn't tell the whole story. CNA's higher premiums often include:

Dedicated agent support for claims and policy questions
More flexible policy customization
Higher coverage limits available
Stronger financial stability ratings
More comprehensive risk management resources

Next Insurance's lower prices come with trade-offs:

Limited customer service (primarily online/phone support)
Standardized policies with less customization
Lower maximum coverage limits
Self-service claims process
Limited availability for complex or high-risk businesses

Market Trends Affecting Pricing

Direct premiums written (DPW) increased 10.5% to $529.0