How Much Does Commercial Property Insurance Cost?

Our customers pay an average of $1,677 annually, or about $140 a month, for commercial property insurance.** Insurers can use several factors to determine your price, so your cost may be different than the average.
Autor:
Chloe Silverman
Chloe Silverman,Staff Copywriter
Chloe Silverman
Staff copywriter specializing in small business insurance for The Hartford.
Revisado por:
Gene Marks
Gene Marks,CPA, Keynote Speaker, National Business Columnist and Author
Gene Marks
CPA, keynote speaker, national business columnist and author.
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Actualizado: 04/11/2025
Tiempo de lectura: 3 minutos
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Key Takeaways

  • Our customers in Colorado had the lowest average cost: $670 a year or about $56 a month.**
  • Some of the factors that can affect your cost are your location, materials used to construct your building, occupancy and any fire safety and security protections included.
  • You can save money on your commercial property insurance costs through bundling, paying the annual premium, managing risks or choose 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?

Commercial property insurance costs vary by state. That's because where your business is located is another factor that can impact your 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 coverage. The best way to find out your business' commercial property insurance cost is to get a quote.
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 every business is unique, but there are steps you can take to try to save on costs. 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 while still protecting your property. Other ways you may be able to save on your insurance include:
 
  • Bundling your policies
  • Paying your premium annually
  • Managing your risks
  • Choosing a higher deductible
Important:
If you choose a higher deductible, this means you'll have more out-of-pocket costs for a claim. If you choose a lower deductible, you'll have less of an out-of-pocket expense, but your insurance policy will likely cost more.

Common Questions About Commercial Property Insurance Cost

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

Related Articles

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.