Cost of commercial property insurance

How much does commercial property insurance cost?

The cost of commercial property insurance will be different for every business. There are several factors that will be used to determine the rate you get for your policy. Commercial property insurance cost is heavily dependent on the type of business and the size and age of the building. On average a company will pay between $1,000 and $3,000 per million dollars of coverage. Although the majority of businesses will pay around $1,000 annually.

If you own a business that comes with considerable risk you more than likely will be looking at a higher premium on your commercial property insurance. For example a business that deals with heavy and dangerous equipment will pay a higher rate than a real estate firm. 

The cost of commercial property insurance will be based off several factors. Below is a list of the more common variables that may impact the cost of commercial property insurance:

Construction:

The condition the building is in and how it was built will play a major role in determining what your commercial property insurance cost will be. Special features such as fire proof materials, expensive HVAC systems, and more can help to lower the rate.

Occupancy:

The people that are regularly inside the building will impact the cost of commercial property insurance. If you have several employees or a lot of customer visits daily, you may be looking at higher commercial property insurance premiums. 

Risk:

Risk is something that is taken into consideration for all insurance policies. The commercial property insurance company will determine what your risk score is based off several factors. 

Location:

The location of your company will have a major impact on the cost of commercial property insurance. If the zip code has a history of high claims or a high crime rate, you will be looking at higher commercial property insurance premiums. 

Protection:

Installing special protection such as security cameras, fire sprinklers, burglar alarms, and more can help to reduce the cost of commercial property insurance. 

What Does Commercial Property Insurance Cover?

Your commercial property insurance coverage will protect the building your company is in, the contents in the building, and outside structures. This includes building equipment, landscaping, fences, signage, and more.

The 3 basic forms of commercial property insurance coverage are:

Basic form policy:

This covers natural disasters, smoke, fire, theft, & vandalism. 

Broad form policy:

This covers everything a basic policy does and it includes protection from falling objects, snow and ice, water damage, and collapsing buildings and structures. 

Special form policy:

This would include everything that is excluded. 

What Does Commercial Property Insurance NOT Cover?

Your commercial property insurance will cover many risks your company could run into. Although there are many things will not cover. It’s always best to know what is and isn’t within your coverage. A standard commercial property insurance policy will not cover personal assets, commercial vehicles, wages, and more. Below are few more risks commercial property insurance will not cover:

• War
• Particular fires
• Earthquakes
• Flooding from heavy rain
• Some smoke
• Weather (Act of God)

Commercial property insurance cost estimate

If you would a free commercial property insurance quote or an estimate for what it may cost you, please contact us today at 916 313 6100