What Is the Average Cost of Commercial Property Insurance?

On average, small business owners pay $1,605 annually, or about $134 a month, for commercial property insurance with The Hartford.¹ However, your commercial property insurance cost may be higher or lower depending on several different factors, including your:

Location
Occupancy
Fire and threat protection
Building construction

Key Takeaways

The average cost of commercial property insurance is $134 a month, or $1,605 annually with The Hartford.²
Some main factors that can affect your commercial property insurance costs are where you’re located, the materials used to construct your building, its occupancy and any fire safety and security protections included.
You can save money on your commercial building insurance costs by bundling policies, paying the annual premium, managing risks and choosing a higher deductible.

What Factors Affect the Cost of Commercial Property Insurance?

Insurance companies use several different factors to determine what you pay for commercial property insurance. Your cost for commercial property insurance may be impacted by the following:

Location

If your business is located in a populated area that has higher risk for crime or vandalism, you may pay a higher rate.

Construction

For example, buildings made from fire-resistant materials will typically cost less to insure because of these precautions.

Occupancy

Businesses with larger amounts of people consistently on the premises, like restaurants, will likely pay higher insurance costs.

Fire and Threat Protection

Installing safety features at your business, like smoke detectors and burglar alarms, may help lower your rate.

How Does My Industry Affect My Commercial Property Insurance Cost?

Your type of industry can be one of the biggest factors that impact the cost of commercial property insurance. If your business’ operations are more hazardous, you’ll need safety features, which can lead to higher insurance costs. For example, a manufacturing company is likely to be exposed to more risks than a technology consultant who works from their home office. To help lower property insurance rates, your business can install safety features like smoke detectors and sprinkler systems.

Regardless of your industry, most small businesses can benefit from having different . With this coverage, your owned or rented building, plus the tools and equipment inside it, will be protected from property damage resulting from fire, natural disasters, theft and other covered events.

What Does Commercial Property Insurance Cost in My State?

Where your business is located is another factor that can have an impact on your commercial property insurance rate. If your business is in an area that experiences natural disasters or severe weather more often than other areas, you may see higher costs for business insurance. Your business can install safety systems to help protect against property damage caused by wind or lightning storms, which may help bring your insurance costs down.

small business owner enjoying their job knowing they have great commercial property insurance rates

How To Save on Commercial Building Insurance Costs

Commercial property insurance premiums often vary because each business is unique. You can save on insurance while still protecting your business property by:

Bundling your policies
Paying your premium annually
Managing your risks
Choosing a higher deductible

Common Questions About Commercial Property Insurance Cost

What Is the Average Cost of Commercial Property Insurance?

On average, our customers pay $1,605 annually, or about $134 a month, for commercial property insurance with The Hartford.3 Keep in mind that your insurance costs may be higher or lower because insurance companies depend on several different factors to determine premium.

What Factors Influence the Cost of Commercial Property Insurance?

Insurance companies use several different factors to determine the cost of your commercial property insurance, like your business’ location, industry, coverage limits, claims history and number of employees. Some industries face higher risks than other industries due to the nature of their work and the risks they face during normal business operations.

What Is a Commercial Property Insurance Premium?

A commercial property insurance premium is what you pay for insurance coverage either monthly or annually. If you choose to pay your premium annually, you may be able to save on insurance costs. Your insurance premium is specific to your business needs. So, if you need additional insurance coverages in addition to your commercial property insurance, you may be able to save money by bundling your policies.

Last Updated: March 21, 2024

^1,2,3 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.

Additional disclosures below.