Commercial Property Premiums

Many different factors affect how insurance companies evaluate what to charge to insure properties. Commercial property owners should be aware of these factors as they go about securing both property and general liability insurance.

Property Value

Carriers will look at property’s assessed values. They may also consider the value of comparable properties in the area.


Where a property is located affects not only its value, but also its risk for certain types of damage. For example, a commercial property that is located in an area with high crime could face a higher risk exposure. Likewise, a property in a region that is frequently hit with severe weather may have a higher premium.

Capital Needs

The condition of a property will play a significant role in an insurer’s willingness to offer coverage. If a property has been poorly maintained and has many unaddressed capital needs such as problems with a roof or a compromised foundation, it may be more susceptible to damage.


What a property owner does to keep the premises safe can help to lower commercial property premiums. Electronic access controls, video surveillance, and onsite security will assure a carrier that a property owner has taken reasonable steps to mitigate the risk of unauthorized access or dangerous activity onsite.