Personal insurance protects individuals and their personal assets, such as homes, vehicles, and belongings, covering risks like property damage and personal liability. Common types include auto, homeowners, and health insurance. Commercial insurance, on the other hand, is designed for businesses. It covers risks related to business operations, such as property damage, liability, employee-related risks, and more. Examples include General Liability, Commercial Property, and Workers’ Compensation insurance.
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Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.
Written by Elizabeth Rivelli
Edited by Alyssa DiCrasto
Last updated: August 8th, 2024
What's on this page?
What is commercial insurance?
Commercial insurance refers to any insurance policy that covers a business against financial risks. The terms commercial insurance and business insurance are often used interchangeably.
Business insurance comes in many forms. Depending on the specific policy, commercial insurance policies can cover lawsuits, attorney fees, court costs, and settlements with a third-party. You can also purchase business insurance to cover office spaces, business inventory, employee lawsuits, and business vehicles, among other things.
Why do businesses need commercial insurance?
Businesses need commercial insurance because it protects against potential risks that can lead to financial loss. Some types of commercial insurance are required, like commercial auto insurance, while others are optional. Additionally, some forms of business insurance may be required by clients or landlords.
Without commercial insurance, businesses are financially responsible for any lawsuits or losses they face, which can affect revenue and even lead to bankruptcy. Because commercial losses can be incredibly expensive, having business insurance provides valuable financial protection.
Common types of commercial insurance
There are dozens of commercial insurance policies. Two of the most common include:
Others include:
- Commercial umbrella insurance
- Cyber insurance
- Directors and officers (D&O) insurance
- Employee benefits liability insurance
- Surety bonds
- General liability insurance
- Commercial property insurance
- Business owners’ policy (BOP)
- Professional liability (E&O) insurance
- Workers’ compensation insurance
- Business renters insurance
- Product liability insurance
- Commercial flood insurance
- Ocean marine insurance
- Medical malpractice insurance
- Employment practices liability insurance
How do I determine which commercial insurance policies I need?
The best way to determine which commercial insurance policies your business needs is to speak with a licensed insurance agent. An agent can help you choose the right insurance policies for your specific business, and recommend appropriate coverage limits based on your industry, revenue, number of employees, and other factors.
In general, you should select policies that cover the risks your business faces. For example, if you have any employees, most states require workers’ compensation insurance, which covers employee injuries and illnesses that happen at work. If you rent or own a physical office space, you may need commercial property insurance. And if your business handles or stores sensitive customer data, like Social Security numbers, you should consider cyber insurance.
How much does commercial insurance cost?
Commercial insurance premiums are different for every business, and rates depend on many factors like your location, industry, and coverage limits. To give you an idea of what you might pay for business insurance, here are average rates from Insureon:
General Liability Insurance
$42 per month
Business Owner's Policy
$57 per month
Commercial Auto Insurance
$147 per month
Commercial Property Insurance
$67 per month
Worker's Compensation
$45 per month
Professional Liability Insurance
$61 per month
What factors affect commercial insurance premiums?
The cost of commercial insurance depends on many different factors. Some of the things that can affect your premium include:
- Type of commercial insurance policy
- Industry
- Number of employees
- Location
- Past insurance claim history
- Coverage limits
- Deductibles
Like all types of insurance, the cost of business insurance can vary significantly, which is why you should compare quotes from multiple carriers. Comparison shopping can help you find the cheapest commercial insurance for your business and coverage needs.
