How Much Does Commercial Property Landlord Insurance Cost? 2025 Rates

Commercial property landlords in the U.S. typically spend between $840 and $1,080 per year on business insurance. That equals about $70 to $90 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Property location – Buildings in high-crime or disaster-prone areas often face higher premiums.
• Building age and condition – Older or poorly maintained properties usually cost more to insure than newer, well-kept ones.
• Occupancy type – The kind of tenants you have (e.g., offices vs. restaurants) affects risk and insurance rates.
• Coverage limits – Higher limits provide stronger protection but increase monthly payments.
• Claims history – A clean record helps keep costs down, while past claims may raise rates.
• Security measures – Properties with alarms, surveillance, or strong safety systems often qualify for lower premiums.

Why It Matters

Understanding these cost drivers helps landlords budget wisely and choose coverage that matches their property risks. With the right plan, they can protect their investment without overspending.

How Much Does Commercial Property Landlord Insurance Cost?

On average, commercial property landlords spend between $840 and $1,080 annually on insurance. That equals about $70 to $90 per month. These figures are only estimates, and the actual premium depends on the details of your property and tenants.

Why Costs Differ

No two properties face the same risks. A small office building with quiet tenants will usually cost less to insure than a large retail space with heavy foot traffic. Older buildings or those with expensive equipment inside often require higher premiums.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger buildings or costly assets increase commercial property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Location And Safety Features

Where your property is located matters. Buildings in areas prone to storms, flooding, or crime often face higher premiums. On the other hand, properties in safer neighborhoods or those equipped with modern safety features—like sprinklers, alarms, and security systems—may qualify for lower rates.

Why This Matters

Understanding these variables helps landlords estimate insurance needs more accurately and budget for the real costs of protecting their investment. With the right coverage, you can safeguard your property without overspending.

Average Commercial Property Landlord Insurance Costs For Coverage Types

When it comes to protecting your commercial property landlord business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most commercial property landlords need.

General liability insurance: $70 per month

Business owner’s policy: $375 per month

Workers’ compensation insurance: $130 per month

Commercial auto insurance: $75 per month

Errors and omissions insurance: $71 per month

Surety bonds: $27 per month

General Liability Insurance

The average cost of general liability insurance for a commercial property landlord is about $70 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer trips on a loose tile in the hallway of your building and gets injured, general liability insurance can help cover their medical bills and your legal costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, previous claims history, the types of properties you manage, your rental income, and any additional insured endorsements you select.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property size, number of units, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $375 per month for commercial property landlords.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the building and items they own. For instance, if a fire breaks out in a tenant’s restaurant and damages the building and equipment you own, the BOP can help pay for repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property size, number of units, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a commercial property landlord is around $130 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a maintenance worker falls off a ladder while fixing a light and gets injured, workers’ compensation would cover their medical bills and part of their lost wages during recovery.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a commercial property landlord is about $75 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if you use a company vehicle to check on properties or transport maintenance equipment, commercial auto insurance can help. For example, if you get into an accident while driving to one of your buildings, this policy can cover vehicle repairs and any damage caused to others.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Errors And Omissions Insurance

The average cost of errors and omissions insurance for a commercial property landlord is about $71 per month.

Errors and Omissions (E&O) insurance helps protect you if someone claims you made a mistake, left out important information, or were careless in your professional services, even if you didn’t do anything wrong.

For example, you accidentally forget to tell a new tenant about a known plumbing issue. Later, the pipes burst and cause damage to their inventory. If the tenant sues you for not disclosing the problem, E&O insurance can help cover your legal costs and any settlement.

The cost factors include, your level of risk, how many employees you have, how many tenants you rent to, the size of the properties you lease out, and your past insurance claims.

Average annual premiums by state:

Note: These estimates are based on average national Errors and Omissions (E&O) Insurance premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property size, services offered, claims history, and insurer underwriting practices.

Surety Bonds

The average cost of surety bonds for a commercial property landlord is about $27 per month.

A surety bond is a promise that a job or agreement will be done as expected. It’s a type of guarantee,  if you don’t meet your responsibilities, the bond helps cover the costs or damages.

For example, if you’re building a new rental property and the city requires you to finish the project by a certain date, they might ask for a surety bond. If you don’t complete the work properly or on time, the bond helps cover the cost of finishing the job or fixing any issues.

Average annual premiums by state:

Note: These estimates are based on average national Surety Bonds Insurance premiums for commercial property landlord businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on bond type, coverage limits, claims history, and insurer underwriting practices.

Commercial Property Landlord Business Insurance Costs By Provider

Commercial property landlord business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for commercial property landlords, typically including property coverage, general liability, and landlord-specific policies. Actual premiums will vary depending on factors such as property value, location, tenant type, claims history, and coverage limits.

What Factors Impact Your Commercial Property Landlord Insurance Costs?

Insurance premiums for commercial property landlords are based on the overall risk profile of the building and its operations. Underwriters consider tenant type, property location, building condition, claims history, and safety measures when calculating rates.

Claims History

A record of frequent claims can raise premiums, as insurers see this as higher risk. Maintaining a clean history often helps secure discounts and lower costs.

Building Value And Equipment

Properties with expensive installations—such as commercial kitchens, walk-in freezers, or specialized systems—require higher coverage. You may also need extra protection for equipment breakdowns or spoilage if you provide or own that equipment.

Type Of Tenants

Not all tenants carry the same risk. Full-service restaurants or bars typically cost more to insure than small offices or coffee shops, especially when alcohol service increases liability exposure.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a higher deductible can reduce monthly costs, though it means paying more out of pocket if a claim arises.

Location Of Property

Where your building is located matters. Properties in high-crime areas, flood zones, or busy cities often face higher premiums compared to those in safer, low-risk neighborhoods.

Size Of Property And Number Of Tenants

Larger buildings with more tenants or heavy foot traffic face greater exposure. More people means more chances for accidents or claims, and having employees such as maintenance staff can also raise workers’ compensation costs.

How To Lower Your Commercial Property Landlord Insurance Costs

Owning and managing commercial property can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without losing protection.

Raise Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just be sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Properties

Accidents and damage can quickly drive up insurance costs. Keeping common areas well-lit, repairing hazards like broken steps promptly, installing security cameras, and ensuring staff are properly trained all help reduce risks. Fewer incidents mean fewer claims, which lowers liability premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training maintenance staff on safe lifting, ladder use, and protective gear reduces injuries. When fewer claims are filed, premiums stay lower.