"How much does commercial insurance cost?" is the most common question business owners ask — and the honest answer is it depends. But "it depends" isn't helpful, so here are real numbers broken down by coverage type and industry.
Cost by Coverage Type
General Liability Insurance
General liability is the foundation of every commercial insurance program:
- Low-risk businesses (office, consulting): $400–$1,500/year
- Medium-risk businesses (retail, restaurants): $1,000–$3,000/year
- Higher-risk businesses (contractors, manufacturing): $2,000–$5,000+/year
GL is priced per $1,000 of revenue or per $1,000 of payroll, depending on your classification code. Higher revenue = higher premium, but the rate per dollar decreases as you grow.
Commercial Property Insurance
- Small office: $500–$2,000/year
- Retail store: $1,000–$4,000/year
- Restaurant: $2,000–$6,000/year
- Warehouse/manufacturing: $3,000–$10,000+/year
Property insurance costs depend on building value, contents value, location (coastal and urban areas cost more), construction type, and fire protection.
Business Owners Policy (BOP)
A BOP bundles GL + property at a discount:
- Home-based business: $300–$1,000/year
- Small office/retail: $1,000–$3,000/year
- Restaurant/service business: $2,000–$5,000/year
BOPs are typically 10–20% cheaper than buying GL and property separately, and include business interruption coverage at no extra charge.
Workers Compensation
Workers comp is priced as a rate per $100 of payroll, multiplied by your experience modification rate (EMR):
- Office/clerical: $0.20–$0.50 per $100 of payroll
- Retail: $1.00–$3.00 per $100 of payroll
- Restaurant: $2.00–$5.00 per $100 of payroll
- Construction: $5.00–$30.00+ per $100 of payroll (varies widely by trade)
- Roofing: $15.00–$40.00+ per $100 of payroll
Example: A restaurant with $200,000 in payroll at a $3.00 rate = $6,000/year base premium, modified by EMR.
Commercial Auto
- Single vehicle: $1,200–$3,000/year
- Small fleet (3-5 vehicles): $3,000–$10,000/year
- Larger fleet (10+ vehicles): $10,000–$50,000+/year
- Trucking (per truck): $8,000–$15,000+/year
Factors: vehicle type, driver records, radius of operation, cargo type, and deductible selection. Hired and non-owned auto adds $200–$600/year for employees using personal vehicles.
Commercial Umbrella
- $1M umbrella: $300–$1,500/year for most small businesses
- $2M umbrella: $500–$3,000/year
- $5M umbrella: $1,000–$5,000+/year
Umbrella is the best value in commercial insurance — $1M of additional protection for a few hundred dollars per year. See our umbrella guide.
Cost by Industry
Here's what a comprehensive insurance package (GL + property + workers comp + auto where needed) typically costs by industry:
- Professional services: $3,000–$8,000/year
- Retail stores: $3,000–$10,000/year
- Restaurants: $5,000–$15,000/year
- Beauty salons: $2,000–$6,000/year
- Janitorial: $3,000–$10,000/year
- Landscaping: $5,000–$15,000/year
- Trade contractors: $5,000–$20,000/year
- General contractors: $10,000–$30,000+/year
- Manufacturing: $10,000–$30,000+/year
- Trucking: $15,000–$50,000+/year
These are ranges — your actual cost depends on your specific risk profile, claims history, and the carriers available in your market.
What Drives Commercial Insurance Pricing?
- Industry classification: Your NAICS/SIC code determines your base rate. Higher-risk industries pay more.
- Revenue and payroll: More revenue or payroll = higher exposure = higher premium.
- Claims history: Prior claims increase your rates. Workers comp uses EMR; GL and property use loss ratios.
- Location: State rating laws, local weather risks, and legal environment affect pricing.
- Coverage limits and deductibles: Higher limits cost more; higher deductibles cost less.
- Safety programs: Documented safety procedures can earn 5–15% discounts.
How to Get the Best Price
- Bundle with a BOP — Always cheaper than separate GL + property
- Work with an independent agent — Compare 50+ carriers instead of accepting one quote
- Maintain clean claims — Every claims-free year improves your pricing
- Right-size your coverage — Don't over-insure or under-insure
- Review annually — Business changes create both opportunities to save and risks of being underinsured