How much does a business owner’s policy cost?

Technology businesses pay a median premium of $45 per month, or $540 per year, for a business owner’s policy. The median better illustrates what you can expect to pay since the average values include high and low extremes.

Because your property value affects the price, companies that own a building or expensive equipment will pay more for this coverage.

Startups with expensive equipment or a large office space should consider higher policy limits to match the potential cost of damaged property. Higher limits cost more, but you can also receive a higher payout on a claim.

Most small businesses choose the $1 million / $2 million business owner’s policy, with a median deductible of $500. That means the policy has:

• $1 million per occurrence limit. This policy pays up to $1 million on any single claim.
• $2 million aggregate limit. This policy pays up to $2 million on all claims.
• $500 deductible. The policyholder must pay the deductible of $500 before collecting on a claim.

Purchasing a business owner’s policy is already one of the best ways to get affordable commercial insurance. To save money, your company can also:

Pay your annual premium in full. When you purchase a policy, you can pay your premium in monthly or annual installments. The annual premium often costs less than paying month by month.

Manage your risks. Companies with no previous claims on their insurance can expect to pay less for business insurance. Business owners can avoid claims with a risk management plan aimed at reducing tripping hazards, theft, and other risks. That could include:

• Installation of sprinkler systems and fire alarms
• Installation of a security system
• Strict protocol for social media posts
• Removal of loose rugs that could trip visitors

Choose your office carefully. Commercial property insurance premiums are higher for older buildings, larger properties, and buildings that lack recent updates. Other factors include the distance to the nearest fire department, access to fire hydrants, and the quality of the fire department.

Choose an actual cash value policy. An actual cash value policy insures items for their depreciated value (the value of the used item). A replacement cost policy covers the cost of a brand-new replacement item. Insurers charge more for replacement cost policies.

View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance.

• General liability insurance
• Errors and omissions insurance / professional liability insurance
• Workers' compensation insurance
• Cyber liability insurance
• Commercial umbrella insurance
• Commercial auto insurance
• Employment practices liability insurance
• Directors and officers insurance
• Fidelity bonds
• Commercial property insurance
• Business interruption insurance