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How much does commercial property insurance cost?

The cost of commercial property insurance primarily depends on the value of the business property your tech company wants to insure.

Commercial property insurance policy costs for TechInsurance customers

The value of your business property will determine how much your tech company pays for commercial property insurance. For example, a company that owns a building will pay more than a company that only needs to cover its computers and office furniture.

Choosing a commercial property policy with a higher deductible can sometimes save tech companies money on coverage, but it's also possible that it could cost more in the long run.

Most TechInsurance customers choose a business owner's policy

Because it combines two common policies at a discount, most TechInsurance customers choose a business owner's policy (BOP). It includes both property insurance and general liability insurance, which protects against the risks of working with clients and customers.

Though we don't have enough data to give an estimate of what your tech business can expect to pay for commercial property insurance, the median cost of a BOP for small tech companies is $45 per month, or $540 annually.

Policy limits affect a tech business’s premium

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

As an example, a tech company could choose a commercial property insurance policy with a $60,000 limit and a median deductible of $500. This policy has:

  • $60,000 limit. This policy pays up to $60,000 in repairs or replacement of damaged property.
  • $500 deductible. The policyholder must pay the deductible of $500 before collecting on a claim.
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Tips for saving money on commercial property insurance

The best way to save money on commercial property insurance is by bundling it with general liability insurance in a business owner’s policy.

Tech and IT businesses can also save money by:

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

Managing risks. Tech companies with no previous claims on their insurance can expect to pay less for business insurance. Business owners can avoid claims on property insurance with risk management. That could include:

  • Installation of fire alarms and fire suppression systems
  • Installation of security systems
  • Employee training on fire extinguishers and similar equipment
  • Company protocol that secures valuable equipment

Choosing a newer, smaller office. Older buildings, larger properties, and buildings that lack recent updates will cost more to insure. Other factors include the distance to the nearest fire department, access to fire hydrants, and the quality of the fire department.

Opting for 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.

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How to reduce liability claims against your business

Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.

What do small businesses pay for other policies?

Updated: April 14, 2022