Monthly Commercial Property insurance costs
- Under $25: 19% of customers
- $26 to $45: 37% of customers
- $46 to $75: 31% of customers
- $76 to $100: 7% of customers
- Over $100: 6% of customers
What factors influence the cost of Commercial Property insurance?
How much is commercial property insurance? The price you’ll pay for commercial property insurance is determined by several factors, including:
The type of work you do
If you’re a florist, your insurance is going to be less than a restaurant owner because the equipment you use to do your job is less likely to get damaged or cause accidents.
The cost for retail stores, who have inventory, equipment and physical buildings, face more risks on a daily basis than many other professions.
In general, jobs that rely on business property and would suffer serious setbacks if their property got damaged or destroyed, often have higher insurance costs.
The state where you work
If your building is in downtown Los Angeles you’re probably going to pay more than if your building is in rural Pennsylvania. This is partly due to the increased threat of natural disasters like hurricanes along the gulf coast. It’s also partly due to more populated areas having higher property prices and more crime.
Your claims history
Your record of losses and claims has an impact on your insurance fees.
For example, if you own a bakery that was in a fire and had to have major repairs, you may see an increase in your premium at renewal time.
How high you set your limits
If you want to be covered for more incidents, you can select higher coverage limits on your insurance policy. Higher coverage limits will almost always increase the cost of your policy.
Your work experience
The number of years you’ve operated a business in your industry impacts your insurance rates.
For example, if you’ve been a nail technician for six years with no claims, you can expect to pay less than a manicurist who’s been in business for two years because you have a proven history in your field.
Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you, so that your claims won’t be denied and that your coverage helps protect you from risk.
How is the premium of Commercial Property insurance policy calculated?
An insurance premium is the amount you pay on a monthly or annual basis for your coverage. An insurance company calculates your premium by taking into consideration all of the factors listed above, such as the likelihood that you’ll make a claim, what your property is used for and where it’s located.
NEXT customizes your coverage to fit your exact business needs. After you answer a few questions with our instant quote process, we’ll share options with pricing for your business.
We operate entirely online to make the process streamlined and easy. You can get completely covered in a matter of minutes and licensed advisors are ready to help if you need them.
What is the cost of Commercial Property insurance for your profession?
So what is the average cost of commercial property insurance? Here are the median monthly premiums of commercial property insurance in popular professions:
How can you reduce Commercial Property insurance costs?
You can take several steps to reduce your insurance costs and lower your premium rates:
Keep your risk level low
A physically safe and secure property can help to limit the likelihood of filing insurance claims and raising your insurance costs, particularly if your small business relies on inventory and equipment to operate.
For example, you might:
- Install a sprinkler system
- Buy more fire extinguishers and smoke detectors
- Upgrade your security system
- Be active about minimizing hazards in the workplace
- Conduct regular safety checks to keep your job site safe
Learn from previous claims
Analyze your previous claims and figure out what you could have done to avoid those risks.
For instance, if you had a claim involving stolen merchandise, you could train your employees on how to handle theft and install a better security system.
Pick the right limits and deductible
Lower limits will save you money, but you will have higher risks if you don’t get enough coverage. And if you choose a higher deductible, you will pay less for the policy (a deductible is the amount of money you pay before your insurance policy kicks in).
Bundle more than one policy
You automatically save 10% if you combine more than one type of policy together. For example, if you add a commercial auto policy to your existing general liability policy, you’ll save 10% right off the bat.
How do I get a quote for Commercial Property business insurance?
You can start an instant quote with NEXT to see if commercial property business insurance is right for you. We’ll ask you some basic questions about how you do business, which we’ll use to create a customized insurance quote.
You can adjust the limits when you receive your quote. If you decide to purchase, you’ll be covered as soon as you’ve bought the insurance you want, and you’ll have instant access to your certificate of insurance. The self-service tools also allow you to pay premiums, add an additional insured and file claims.
Getting insurance through NEXT can be done entirely without talking to an agent. And if you do have questions, our licensed, U.S.-based insurance professionals are ready with the answers.
Contact us if you’re unsure which type of coverage and limit amounts are right for your business.
Start a free instant quote today.
More about Commercial Property insurance:
Commercial Property insurance
General liability insurance costs