How much is business property insurance per month?
Asked by: Vivian Breitenberg II | Last update: January 1, 2026Score: 4.9/5 (7 votes)
How much does property insurance cost for a small business?
Small businesses pay an average premium of $67 per month, or about $800 annually, for commercial property insurance. Almost two-thirds (62%) of customers spend $100 or less for coverage. Our figures are sourced from the median cost of policies purchased by Insureon customers from leading insurance companies.
How much insurance do I need for my small business?
Professional liability coverage: Policy limits vary substantially by industry, from $250,000 to $2 million. The average small business coverage is $1 million per occurrence and a $1 million aggregate limit. Business owner's policy: Many small businesses select $1 million per occurrence and a $2 million aggregate limit.
How much is business personal property insurance?
BPP coverage can start as low as $18 a month when you purchase a policy with Next Insurance, although the cost of BPP insurance is different for each business.
How much does a $1 million dollar business insurance policy cost?
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners. Keep in mind that every business is different, so the $1 million liability insurance cost will vary.
Commercial Property Insurance - Basics
What is business property insurance called?
This type of business insurance, also known as commercial property insurance or business personal property insurance (BPP), helps protect the owned or rented equipment, building and personal property at your company. This coverage can help cover the costs to repair or replace: Personal property located at your business.
Do I need business insurance if I have an LLC?
If you don't have liability insurance for your LLC, your business finances could be severely impacted. A lawsuit could also put your business at risk. If you don't have the proper insurance, you could be forced to pay out of pocket for legal defense costs even if you aren't found liable.
How much is a $2 million dollar insurance policy for a business?
On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.
What is the best small business insurance?
- Best for variety of plans: Nationwide.
- Best for online experience: Next Insurance.
- Best for home-based businesses: The Hartford.
- Best for independent contractors: Hiscox.
- Best for medium-sized businesses: Chubb.
- Best for customer satisfaction: State Farm.
- Best for worker's compensation: Travelers.
Can business insurance be paid monthly?
Paying Your Insurance Premium Monthly
It's not uncommon for a broker or insurance company to offer monthly or annual payment options. For an existing business, you will be asked to pay the first month of your premium, followed by 11 monthly payments.
Why is business insurance so expensive?
More Claims
And when insurance companies have to pay out, they need to take more in. That's just how insurance works. If they ran out of money, they wouldn't be able to pay future claims. Over time, this leads to higher premiums for everyone (not just the ones who filed a claim).
How much is LLC insurance?
Finding out how much LLC insurance costs at the professional level will vary depending on your location, the number of employees you have, and more. On average, though, an LLC owner might be looking at a price tag of anywhere between $500 to $1,000 on professional liability insurance.
How much should property insurance be?
The national average cost of home insurance is $2,181 per year for a policy with a $300,000 dwelling limit. This comes out to about $182 per month. But these are just average figures — what you pay for your policy will likely be different. Just as coverage needs vary across individual homeowners, so will costs.
Do businesses have to have property insurance?
Your building's landlord or mortgage lender will often require proof of coverage before you can open your business. This includes coverages like general liability insurance and commercial property insurance. The good news is Business Owners Policies often automatically include commercial property coverage.
Is $200 a month good for insurance?
Is $200 a lot for car insurance? Paying $200 per month is a little higher than average for car insurance. Nine states have average rates for full coverage that are higher than $200 per month, and no state has average rates that high for minimum coverage.
How much is a 5 million dollar business insurance policy?
How much does a 5 million dollar business insurance policy cost? For businesses seeking broader coverage, a $5 million umbrella policy typically costs between $375 to $525 per year. This type of policy extends the limits of your existing liability policies, providing an extra layer of protection.
Is it cheaper to pay insurance monthly or yearly?
Paying your insurance premiums annually is almost always the least expensive option. Many companies give you a discount for paying in full because it costs more for the insurance company if a policyholder pays their premiums monthly since that requires manual processing each month to keep the policy active.
Can I run my business without insurance?
If you've asked yourself, “Do I need insurance for my small business?” The answer is yes. A small business insurance policy can help with protecting your assets and company. Without this coverage, small businesses may have to pay to repair or replace damaged or destroyed property on their own.
Can an LLC get homeowners insurance?
In most cases, insuring a home held in a trust or LLC isn't any more expensive than if you owned it directly. But it is necessary to work with your insurance advisor to make sure that there are no gaps in the coverage for either the property or yourself.
Can I use an LLC without a business?
Yes, you can form an LLC without a business. This means creating a legal entity to protect your personal assets and prepare for future operations, even if you're not actively generating revenue or serving customers yet.
How much business personal property insurance do I need?
How much BPP coverage do you need? For business property insurance policies, you typically need a policy limit of at least 80% or 90% of the value of the covered property. This is spelled out in what's called the “coinsurance provision,” which you can find in your policy declarations.
What are the three types of property insurance?
Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance. The three types of property insurance coverage are replacement cost, actual cash value, and extended replacement costs.
What is the difference between personal property and business property?
Business personal property (BPP) includes items not permanently attached to the land, such as equipment and furniture. Real property refers to land and structures on it. The critical difference lies in mobility; personal property can be moved, while real property is fixed and immovable.