Small businesses pay a median $108 a month for commercial property insurance, according to Insureon's customer data, and nearly half (46%) pay under $100. The price follows the value of what you insure, so a consultant with a laptop and a desk pays a fraction of a restaurant with a kitchen full of equipment. If you also need general liability, price a business owner's policy (BOP) that bundles both: its Insureon median is $83 a month. For what the policy covers, see the commercial property insurance guide. Get property insurance quotes from one form below, or compare business insurance quotes from several insurers.
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How much does commercial property insurance cost?
A median $108 a month among Insureon's small-business customers, or about $1,300 a year. Most pay under $200 a month.
| Monthly premium | Share of Insureon customers |
|---|---|
| Under $100 | 46% |
| $100 to $200 | 22% |
| Over $200 | 32% |
Source: Insureon commercial property costs, median cost of policies sold to Insureon's small-business customers, page updated 9 March 2026, read 10 October 2026. Annual premiums run from under $350 to over $15,000. The "over $200" row is the remainder of Insureon's two published shares; Insureon's headings call the median an average.
Commercial property cost by business type
What you keep on site sets the price. Insureon gives two examples on its property page:
| Business | Monthly median | Source |
|---|---|---|
| Food and beverage business | $131 | Insureon commercial property page |
| Consultant | $81 | Insureon commercial property page |
| HVAC contractor | $117 | Insureon HVAC page (HVAC cost) |
Property alone or a BOP?
For a small business that needs liability too, quote a BOP first. Insureon's customers pay a median $83 a month for a BOP, which includes general liability and property, against $108 for commercial property on its own. The two medians describe different groups of businesses, so a BOP won't always be cheaper, but it's the natural starting point. The Hartford says its small-business customers average $141 a month for a BOP (The Hartford).
A BOP isn't available to every business: insurers set eligibility limits on size, revenue and type of work. Larger or higher-risk properties are written as standalone commercial property. See BOP cost for the bundle.
If you rent and don't need building cover, Insureon notes you can add business personal property cover for your equipment and stock to a general liability policy instead of buying a full property policy.
What drives the cost?
| Factor | Effect |
|---|---|
| Value of what you insure | The biggest driver: building, equipment, inventory and improvements |
| Location | Exposure to wind, hail, wildfire, flood and crime |
| Building construction and age | Masonry and newer systems cost less to insure than frame or old wiring |
| Fire protection and security | Sprinklers, alarms and distance to a fire station lower the price |
| Occupancy | A restaurant kitchen is a bigger fire risk than an office |
| Valuation method | Replacement cost costs more than actual cash value |
| Limits and deductible | Insureon customers choose a $1,000 property deductible on average |
How to lower your commercial property premium
- Insure at an accurate replacement value; overinsuring wastes money and underinsuring can cut a claim payment.
- Raise the deductible above $1,000 if you can absorb a small loss.
- Install or document sprinklers, monitored alarms and updated electrical work.
- Bundle property and liability into a BOP if you qualify.
- Compare several insurers on the same values and deductible.
Get commercial property quotes
Have your address, building construction and age, square footage, the value of your equipment and inventory, and any past claims ready. Then compare business insurance quotes from several insurers.
Frequently Asked Questions
How much is commercial property insurance per month?
Insureon's small-business customers pay a median $108 a month, and 46% pay under $100.
How much does commercial property insurance cost per year?
About $1,300 a year at Insureon's median, with annual premiums ranging from under $350 to over $15,000.
Why is my commercial property insurance so expensive?
Usually because of what you insure and where. High replacement values, older buildings, cooking or manufacturing on site, and locations exposed to storms or wildfire all raise the price.
Is commercial property insurance cheaper in a BOP?
Often, for small businesses. Insureon's BOP median is $83 a month including general liability, against $108 for property alone, though the two medians describe different businesses, and only businesses that meet the insurer's BOP eligibility rules can buy one.
