What is the average cost for commercial insurance?


It is difficult to provide a direct answer to this question since commercial insurance cost varies. There are a lot of factors to consider before you can come up with a reasonable price for this kind of insurance.

Some of the variables that greatly affect the price of commercial insurance are:

  • the nature of the business,
  • perceived risks or threats,
  • amount of probable loss,
  • scope of business operations,
  • and coverage policies and options.

The general rule of thumb here is, the more risks identified, the bigger the business being operated, and the greater amount of probable loss recognized, the more expensive your commercial insurance would be.

If you put it this way, a business owner running a small business would have less perceived threats or risks and lower probable cost. Assuming also that their business operations are not that extensive, lees insurance policy coverage is needed. This is in contrast with big companies where a lot of manpower is required. At the same time, the scope of business is vast and cost of probable loss is greater than small businesses. Since this is the case, it is very difficult to give specific amount or price for commercial insurance.

We strongly suggest that you sit down with your insurance agent in and discuss the variables in order to come up with a reasonable insurance coverage and price.

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