Average Commercial Property Insurance Cost for Small Businesses

Average Commercial Property Insurance Cost for Small Businesses

Do you own a small business? If so, then you understand how challenging it can often be to keep your finances in order. From overhead costs to employee payroll, there never seems to be enough money to get through the next month, let alone make it to the end of the year.

One of the important things for you to be able to manage as you work to keep your business afloat is your insurance needs. You have to have the proper commercial property insurance in place to help you recover from unexpected events.

But what factors go into determining the average commercial property insurance cost? Keep reading to find out.


So, the first thing that affects your commercial property insurance cost is where you’ve set up your business. Insurance folks look at your business surroundings and ask, “Is it safe there?”

If you’re in a sketchy area where crime is higher than a kite, your insurance will cost more. And if your business rests in a land of natural disasters, like a tornado hotspot, you’ll pay extra for that too. So, if you’re opening a business insurance in New Jersey, consider what that means for your insurance bill.

Property Type

The type of property you own also plays a crucial role in determining your business insurance costs. Different types of properties have varying levels of risk associated with them. A simple rule of thumb: the more complex or valuable your property, the higher your insurance premium.

So, if your business is located in a fancy office building with top-notch security systems, you might pay more for insurance compared to a business operating in a simple storefront.

Coverage Types

Commercial property insurance isn’t one-size-fits-all. You can customize your policy based on your business’s specific needs.

For instance, general liability insurance costs an average of $42 a month. General liability insurance covers you if someone is injured on your property or if your business is sued for causing harm to others. This coverage cost can vary based on factors like your business’s size and the amount of coverage you choose.

Deductible Amount

Your deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your insurance premium will be. Why?

Because when you’re willing to cover more of the cost upfront, the insurance company’s risk is reduced, so they charge you less. But, it’s essential to find a balance between a manageable deductible and affordable premiums. A sky-high deductible might save you money on premiums, but it could be burdensome if you ever need to make a claim.

Business History

The history of your business matters too. Insurance companies often consider your business’s track record when calculating your premiums.

If you have a history of frequent claims or your business has faced legal issues in the past, you may be deemed a higher risk, leading to higher insurance costs. Conversely, if your business has a clean history with few or no claims, you may qualify for lower premiums.

Factors Affecting the Average Commercial Property Insurance Cost

In conclusion, various factors can affect the average cost of commercial property insurance for small businesses. Small business owners need to consider these factors and choose an insurance plan that meets their specific needs and budget. Protect your business by taking the necessary steps to secure adequate coverage today.

So, don’t wait! Safeguard your business by finding a suitable insurance plan now.

Was this article helpful? If so, check out the rest of our blog.

Read Also: Tax Heaven For Businesses: 6 Best States To Operate In

Read Also: How Does Account Receivable Insurance Work?