A commercial package policy (CPP) combines general liability and commercial property coverage into one policy at a discount. Your risk level, policy limits, and coverage needs will impact your total costs.
Regardless of policy limits, the average cost of a commercial package policy is $80 per month or $960 per year.
Many Insureon small business customers (61%) pay less than $100 per month for a commercial package policy, and 36% pay between $50 and $100 per month.
These figures were sourced from an analysis of policies issued to Insureon customers to calculate the median cost, which offers a more accurate estimate of what your business is likely to pay for insurance because it excludes outlier high and low premiums.
For the general liability insurance portion of a CPP, your industry has a significant impact on policy costs. Generally, high-risk industries pay higher premiums, while low-risk industries enjoy lower rates.
For example, a real estate agent who takes house hunters on tours every day is exposed to more risk of customer injury than an IT consultant who works out of a home office. Construction businesses and auto service professionals also have high coverage costs because these industries often have valuable equipment or inventory, as well as increased third-party liability.
The graph below illustrates how the type of business affects what you'll pay for a commercial package policy, with average monthly costs for each industry.
For the commercial property insurance portion of a CPP, the cost of insurance depends on the value of your business property, its location, and how you choose to protect it.
To protect your property, the first step is knowing what it’s worth. You'll need an estimate of your business personal property. The amount will help you determine appropriate limits to make sure your insurance can cover the cost of replacing or repairing stolen, lost, or damaged items.
The value of your building and subsequent insurance costs vary dramatically depending on where your business is located. For example, a small retail shop in rural Pennsylvania would cost much less to insure than a similar retail shop in urban California. Older buildings may also incur higher insurance rates as they are more susceptible to damage.
The cost of a CPP varies depending on how you choose to insure your business personal property. You can insure it for its replacement value (cost when new), or save money by insuring it for its actual cash value (depreciated value).
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance. If you want a policy with higher coverage limits, expect to pay more than you would for basic coverage.
The most popular commercial package policy among Insureon customers is the $1 million / $2 million policy. This includes:
The majority of Insureon customers (95%) chose a commercial package policy with a $1 million per-occurrence limit and a $2 million aggregate limit. Another 1% of our customers chose a policy with $2 million / $4 million limits.
Your commercial package policy premium can typically be paid in monthly or annual installments. Paying the full premium can sometimes save money because insurers may offer discounts for annual premiums.
If your small business has no claims history, expect to pay lower insurance rates. An effective way to do this is to create a comprehensive risk management plan. For example, you might:
Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.