Commercial Insurance Rates in 2026

Overall Market Outlook

Heading into Q4 2025, the commercial insurance market is steadier than the turbulent 2023–2024 period, with rate momentum having cooled for many buyers and competitive conditions returning in several lines. This represents a significant shift from recent years of aggressive rate increases, though certain high-risk lines remain under pressure.

General Liability Insurance Costs

General liability insurance costs between $15 and $1,073 monthly, with most small businesses paying around $104. Industry classification drives the biggest cost differences—office-based businesses start at $22 monthly, while construction companies pay over seven times more at $158 monthly. High-risk operations like pressure washing can reach $918 monthly due to slip hazards and property damage risks.

Small Business Insurance Averages

Depending on your state, average business insurance costs range from $64 to $171 per month. These costs vary dramatically by industry, with DJ companies paying as little as $6 monthly while pressure washing firms face costs up to $1,346 monthly. At the provider level, average rates range from $69 to $178 per month, depending on coverage selections.

Commercial Auto Insurance

Most fleets should still budget for above-average increases in 2026, especially if they have recent at-fault accidents or operate heavy trucks, buses, or delivery vehicles in dense urban areas. Commercial auto remains one of the toughest lines, though carriers are becoming more willing to reward strong risk management practices like telematics usage and documented maintenance schedules.

Health Insurance for Small Businesses

For 2026, the median proposed premium increase among 318 small group insurers across all 50 states and the District of Columbia is 11%. Average annual premiums for employer-sponsored coverage reached roughly $9,300 for single coverage and about $27,000 for family coverage in 2025, up 5-6% from 2024.

Key Cost Factors

Business size, claims history, and location significantly impact rates. Revenue matters too—a cleaning company with $200,000 in annual revenue pays $130 monthly, but tripling revenue to $600,000 increases rates by 50% to $195 monthly. One bodily injury claim can push rates up 25-50% for three to five years, regardless of fault.