How Much Does Business Renters Insurance Cost? (2023 Rates)

Thang Truong
Thang Truong
Updated on:

Are you thinking of renting an office, store, warehouse, or other business property? Many business owners make the mistake of thinking the landlord takes care of the insurance to cover it.

The truth: Your landlord will likely require you to get business renters insurance before you sign a lease.

This article will reveal the cost of business renters insurance and explain what you need to know to get coverage.

How much does business renters insurance cost?

The average cost of business renters insurance is $95 per month, or $1,140 per year. That is for a Business Owners Policy (BOP), which combines both business liability and business property coverages in one low-cost bundled policy.

Most business renters buy a Business Owners Policy (BOP) because that is the most common policy for a small business and it is very easy to customize a BOP to work for your specific business operations by adding additional coverages such as professional liability or E&O or rental equipment coverages, etc.

Most small businesses renting a small office pay from $800 to $1,400 per year for a BOP business renters policy.

Learn more at BOP insurance cost and the best BOP insurance companies

How much does business renters liability insurance cost?

If you only need to have business renters liability coverage, you’ll pay an average of $45 per month, or $540 per year. In many cases when you rent an office for your small business, the landlord will require you to have at least the business renters liability insurance before they can sign the lease contract with you.

Keep in mind that this is just the average. You’ll have a different rate. It is extremely rare for 2 businesses to have the same insurance rate. So be sure to shop around with a few companies. Getting quotes online is an easy way to get and compare several quotes to choose the cheapest one for your business. CoverWallet, Simply Business, or Thimble are providers offering small business insurance quotes online. It shouldn’t take you more than 10 minutes to get a quote on their website.

What factors impact business renters insurance costs?

Here are some of the top things that impact business renters insurance premium prices:

  • Location. Where your business is located impacts the environmental risks faced by your business, such as flooding, hail, tornadoes, and more. Land value and local laws and regulations affect property premiums, as well. 
  • Size of business location. A big medical or manufacturing building will usually cost more to insure than a one-room rented office.
  • Safety and security. Is your business located in a high-crime area? Is the neighborhood prone to vandalism? Do you have solid fire and crime prevention systems in place? Does your business store toxic materials or engage in dangerous activities? Do you employ reliable security measures? All these factors affect insurance premium costs.
  • Building age. Old buildings are more likely to be impacted by certain types of damage, so they may be more expensive to insure. For example, buildings with old electrical wiring and no fire prevention systems are more likely to burn down.
  • Fire protection. Businesses located near a fire department and fire hydrants typically cost less to insure. Installing sprinkler systems and fire alarms help lower property insurance costs, as well.
  • Business equipment. Heavy industrial or construction equipment will cost more to insure than a home-based business laptop.
  • Age of equipment. You may pay higher premiums if your equipment is hard to repair because of scarce parts or if it’s more likely to break down because of heavy use. Alternatively, it might be cheaper to repair older equipment than buy state-of-the-art technology.
  • Inventory. A business that stores a lot of costly merchandise will be more expensive to insure than a small office space that keeps a few supplies on hand.
  • Property valuation method. Replacement value coverage is more expensive than actual cash value coverage. Replacement value pays claims based on the cost of a brand-new item. Actual cash value pays out at an item’s lower depreciated value.
  • Risks covered. A policy providing open or broad coverage costs more than one covering limited specified risks. Open risk (or perils) coverage pays claims on all losses except those expressly excluded by the insurance policy. Named risk (or perils) coverage only pays claims for losses listed on the insurance policy.
  • Limits and deductibles. The more insurance coverage you have, the more it will cost. The higher your deductibles, the lower your premium. Work with your insurance agent to find the right combination for you.

How can I save money on business renter’s insurance?

The best way to save money on business renter’s coverage is to limit business risks, so you avoid making claims on your policy. Making claims on your insurance will result in higher premium prices. Some things you can do to reduce risks include:

  • Keeping business property in good condition
  • Installing alarms and other fire and theft prevention devices
  • Eliminating injury hazards from your workplace
  • Storing flammable and explosive chemicals safely
  • Removing ice and snow from sidewalks and parking areas
  • Having a privacy statement and posting it on your website
  • Training employees on how to work carefully and safely
  • Posting warning signs in your workplace.

Another way to save money on business property insurance is to get several quotes from different providers. It will allow you to compare coverages and costs to find the best deal for your small business.

CoverWallet, Simply,, or are the top brokers for small businesses that offer online quote comparison. After you submit your information, they will provide you with 3-4 quotes from the leading insurance companies that they work with. You can choose the best quote and proceed to buy the policy online.

Who needs business renters insurance?

Most business owners in the United States do not own their business property. Instead, they lease or rent an office, retail, or manufacturing space. 

Many small business owners renting business space assume that they are covered under their landlord’s insurance. The reality is that this coverage pays only for damage to the building itself. To protect your business property, such as desks, computers, manufacturing equipment, and inventory, and to cover injuries to non-employees, you need your own business renters insurance. In many cases, your landlord will require you to get this coverage, so they’re not held responsible for these losses.

Any business that rents property for its operations, such as an office, store, manufacturing facility, or warehouse — should purchase business renters insurance. Many landlords require businesses to show proof of insurance to rent space in their buildings. They should provide you with information about the coverage you need to secure, and your proof of insurance will show that you purchased it.

What does business renters insurance cover?

Business renters insurance, also referred to as business renter’s insurance or tenants’ insurance, covers damage to — or destruction of — business property resulting from vandalism, weather conditions, structural malfunctions, and fire. Not only does business renters insurance cover property damage or losses, but it also provides liability coverage to protect you and your business if you’re named in certain types of lawsuits.

Things typically covered by this type of insurance include:

  • Contents of the business property, including furniture, computers, phones, printers, records, essential papers, inventory, equipment, appliances, and more. 
  • Theft of office equipment, inventory, equipment, machinery, and other business-related items from the premises.
  • Structural damage resulting from a fire if the tenant is found to be responsible for the blaze.
  • Injuries on the property that happen to any visitors (non-employees) to the business property. 
  • Harm to another tenant if a fire originating in your unit is found to be caused by your negligence or that of an employee.
  • Loss of income if you are unable to operate your business due to a reason covered by your insurance.

How does my landlord’s coverage impact mine?

When purchasing business renters insurance, it is crucial to know your landlord’s coverage limits. Your policy can overlap or conflict with their coverage. It’s essential to ensure that your policy covers anything that is not protected under your landlord’s insurance. Always take time to find out what types and levels of coverage your landlord has before you sign the lease so you can fill in gaps.

How do I get business renters insurance?

There are four ways to secure coverage:

  • Work with a broker: An insurance broker leverages its connections with different insurers to find you the coverage you need at the fairest possible price.
  • Use an online marketplace: A marketplace allows you to fill out a single application and get quotes from multiple insurance providers, all in a single place.
  • Purchase from an insurance company: You can research different insurance companies and apply for coverage online or speak with a representative. Ensure you get quotes from several insurers to find the best and most affordable option.
  • Work with an agent. If you need support getting your insurance, work with an agent that can help you figure out what coverage you need, get you quotes from several providers, secure insurance, and help you out when it comes time to renew or make a claim.

No matter how you get your business renters and other insurance coverage, always make sure you explore your options, so you get the right coverage for you at the best price.

Best business renters insurance companies

As most businesses in the US rent their offices, stores, and warehouses, which makes business renters insurance very popular. Hundreds of insurance companies offer business renters policies. That can make finding the best business renters insurance companies overwhelming. We have done the research and here are our recommendations of the best business renters insurance companies for your considerations.

  • CoverWallet: Best for comparing several quotes online
  • The Hartford: Best for getting complete coverage through a Business Owners Policy 
  • Hiscox: Best for small businesses with multiple rented locations
  • Chubb: Best for businesses that have locations in countries outside of the United States
  • Geico: Best for affordable business insurance coverage
  • Progressive: Best for discounted business insurance
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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