New rankings show that small business booms are causing insurance risks, and millions of business owners could be exposed to losses that their companies might not survive.
BURBANK, Calif., Jan. 20, 2026 /PRNewswire/ — New information from data collected by USA Business Insurance Services, Inc. shows that there is a growing disconnect between small business booms and the correct insurance protections for these new companies.
The firm has ranked the fastest-growing cities in the U.S. for small businesses and identified some of the areas where the largest commercial insurance gaps exist. Business owners in the US are vulnerable to all kinds of threats, such as lawsuits, cyberattacks, losses related to weather events, and operational shutdowns that could bankrupt them and their businesses.
The report has shown that entrepreneurs are moving quickly in response to shifts in the market, but their insurance coverages are not keeping pace.
The 10 Fastest-Growing Cities in the U.S. for Small Business (2026 Ranking)
These rankings have been created by USA Business Insurance with assistance from SBA Lending Data , BLS employment growth data, commercial permit filings across the country, population inflow figures, and data from the U.S. Census Business Formation Statistics.
These are the places where small business growth is on the rise, and also some of the areas where inadequate commercial insurance is most common.
- Austin, TX
- Miami, FL
- Phoenix, AZ
- Nashville, TN
- Tampa, FL
- Raleigh, NC
- Noise, ID
- Charlotte, NC
- Salt Lake City, UT
- Atlanta, GA
These metro areas have seen the launch of hundreds of thousands of new companies since 2024, and most of them are not insured correctly.
Cities were ranked using net new business applications from the U.S. Census, small business employment growth metrics from the BLS, SBA loan volume and approvals, commercial permitting records, and population and workforce migration trends made publicly available. Insurance gap analysis was provided with the assistance of anonymized internal coverage reviews, accepted industry benchmarks, and publicly available loss data from the industry as a whole.
Hidden Risks: Why Insurance Coverage is not Scaling With Business Growth
Rapid expansion in key metro areas is often problematic. The scramble to be noticed, to collect market share, and to sell products can encourage business owners to skip steps, save dollars, and cut corners. First-time owners and rapidly scaling businesses often forget all about their insurance coverage needs in favor of rapid business growth and rapid sales.
The report shows that:
As many as 40% of new businesses in these high-growth areas only have minimum business insurance coverages. Many of them are operating with liability coverage and no other policies to protect their business.
One in three of these new businesses is going without business interruption insurance despite rising instances of cybercrime, increased risk of harsh weather, and supply chain issues that have been going on since the pandemic.
Cyber insurance adoption is still much lower than it should be, and many companies think that they can afford not to pay for this coverage.
Specific industry spaces with high incidences of legal action, such as the construction, food service, and professional services niches, are among the industries where a lack of insurance is the most common.
Saving money doesn’t always mean saving your business. You can be an economic success as a company and still fail due to a single high-dollar claim.
Why Does This Matter?
There are many factors that can negatively impact small businesses in the U.S. today. Inflation is still running away, and litigation costs are on the rise across the nation. A single uncovered claim event could lead to you shutting down your business for good.
In high-growth areas, these risks multiply exponentially due to work in areas where there are houses and foot traffic and due to increased pressure to meet deadlines without proper staffing or a budget in place.
“Growth feels like momentum, until one uninsured event wipes a business out,” says Sam Meenasian, VP of USA Business Insurance Services Inc.
What Should Small Business Owners Watch for in High-Growth Markets?
There are a few factors that can signal to businesses that they need to take action with regard to their insurance.
Hiring your first staff member or signing a commercial lease always means changes to your insurance needs. If you have expanded online and are taking digital payments or collecting customer information through a website, it’s time to add coverage for these business processes.
When you move operations to work across state lines, you also need to reach out to your insurance agent to update your coverage. If you are experiencing rapid growth as a company, it’s also time to reach out for a look at your policies.
Your insurance needs to scale at the same pace as your company. If you have not been in touch with your insurance company in a few months, it might be time to check in.
About USA Business Insurance
USA Business Insurance offers small and mid-sized businesses across all 50 U.S. states access to customized coverage solutions for their insurance needs. The company works with many leading U.S. carriers to help business owners identify risk, close gaps in their coverage profile, and protect their business investments for the long haul.
SOURCE USA Business Insurance Services, Inc.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.