How Much Is Commercial Insurance?

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How Much Does Commercial Insurance Cost?

how much is commercial insurance Every company faces unique risks and challenges. From bodily injury and property damage to mistakes in professional services, commercial insurance helps protect your organization from different risks. You may be wondering, “How much is commercial insurance?” Unfortunately, there’s not a one-size-fits-all answer to that question because insurance costs are specific to the type of business you have. However, a survey of eight industries and commercial insurance policies from The Hartford found the median cost was $662 annually, or $55 a month.**
 
Insurance companies look at different factors when determining your company’s commercial insurance cost, such as:
 
  • Policy details, like coverage types and limits
  • Location
  • Claims history
  • Number of employees
We’re here to help you get the right coverage for your company. Our team can help you customize your commercial insurance policy, so it addresses your organization’s unique needs.
 

Average Commercial Insurance Costs for The Hartford Customers

how much does commercial insurance cost The average cost for commercial insurance from The Hartford in eight industries was about $1,500.** This is higher than the median cost because businesses in certain industries likely needed more coverage, which increases the average cost.
 
It’s important not to compare your company’s insurance cost to an average, because it’s likely your coverage needs will be different, which will mean your annual premium may be higher or lower than the average commercial insurance cost.
 
Your commercial insurance policy will likely include different types of coverages, which increase your rate. For example, common coverages that companies choose to get include:
 
The types of insurance you choose and your coverage amounts affect your policy cost. For example, if you have a higher policy limit, it can increase your general liability insurance cost or your errors and omissions cost. Certain traits about your company can also be a factor. For instance, your workers’ compensation cost will be higher if you have more employees.
 

Factors Impacting How Much Commercial Insurance Costs

Industry Risk

If your company is in a higher risk industry, your commercial insurance cost may be higher. This is because your company is exposed to more risks, so you may need to have more liability coverage to help protect your organization.
 

Business Location

Companies in populated areas face a higher risk of crime or vandalism, which can increase their insurance rates.
 

Payroll Size

Some commercial insurance coverages look at how many employees you have to determine your cost, such as workers’ compensation or general liability insurance. Typically, the larger your team, the higher your insurance cost will be.
 

How Much Coverage You Need

When you get commercial insurance, you’ll pick your coverage limits. All insurance policies will include an occurrence limit. Certain policies, like liability insurance, can include an aggregate limit.
 
The occurrence limit tells you how much coverage you have for a single claim.
 
The aggregate limit is the maximum amount of money your insurer will pay out during the policy period. Most liability policies include an aggregate limit.
 
For example, your general liability policy coverage is “$1 million/$2 million aggregate.” This means you have coverage for up to $1 million for a single claim. But, the max your insurer will pay for policy period is $2 million. Generally, the higher your aggregate, the more you’ll pay for your policy.
 
For commercial property insurance, these policies generally only include an occurrence limit. This means that your property coverage limits will apply to each separate claim that may occur during a policy period.
 
For instance, your property coverage includes a $600,000 occurrence limit. You submit a claim for $200,000 after someone breaks into your business and damages your furniture and steals your equipment. Later in the year, a fire breaks out in your building and causes $450,000 in damages. Since your policy doesn’t have an aggregate limit, there’s not a policy period cap on how much your insurer covers. This means your insurer can help cover each of your claims because neither one exceeds your occurrence limit of $600,000.
 
How much coverage you need is specific to you. Your coverage needs will likely be different than other companies. That’s why it’s important to work with an experienced insurance company. We can help you figure out how much coverage you need and help you save money by avoiding paying for extra coverage you may not need.
 
Our team is ready to help, whether you’re early in your search and wondering, “What is commercial insurance coverage?” or ready to get a quote, we’re here for you.
 

Common Questions About Commercial Insurance Costs

How Much Does a $1 Million Commercial Insurance Policy Cost?

A $1 million commercial insurance policy cost depends on which coverages you have in your policy. It can cost between a few hundred dollars a year to a couple thousand dollars. Our specialists can help you find out how much is business insurance and any other questions you may have.
 

How Do I Get Commercial Insurance?

We make it easy for you to get commercial insurance. Here are three ways you can get a commercial insurance policy from The Hartford:
 
  1. Get a commercial insurance quote online
  2. Work with a local insurance agency or agent
  3. Call 855-829-1683 and speak with one of our specialists
 
** Survey based on policies without certain coverages, including building, technology errors and omissions, and umbrella. Adding these coverages, or any others, will affect policy cost.