How much does Atlanta commercial property insurance cost?

There are several factors that affect the cost of your commercial property insurance.


Perhaps you would rather not think about what would happen to your business if a fire hit or you had to weather a winter storm. We get it – there are way more fun things to be thinking about than doom and gloom. But since you’re a business owner and understand that things rarely go as planned, you’re here, reading about property insurance. You know that you need to protect yourself from loss, but you’re probably wondering how much property insurance costs.

And that’s a great question, but the only problem is that it’s a little complicated.

There are a few things that influence the cost of commercial property insurance. We’ll explain some of the factors that go into determining your commercial property insurance rates.

Here we go:

1. The construction/material of your building.

When an insurance company is looking at the commercial property insurance for your business, they’re going to want to figure out how flammable your building is. Insurance companies don’t really like fire because it tends to be very destructive. Anyways, the material your premises is made of influences how flammable your business is, as certain materials are easier to catch on fire and burn.

The building material is so important that the Insurance Services Offices (ISO) has created a system of categories to describe the structure of a building for insurance purposes. The “Classes” as they’re called go from 1 – 6, with 1 being the most flammable and 6 being the least.

Here are the general categories:

  • Class 1: Frame
  • Class 2: Jointed Masonry
  • Class 3: Non-combustible
  • Class 4: Masonry, Non-combustible
  • Class 5: Modified Fire Resistive
  • Class 6: Fire Resistive

The reason we explain this is that the higher up on this list your building is, the less likely it is to catch fire – and if it does, you’ll probably be facing less damage because the material is more fire resistant. And all of that can translate to lower insurance rates.

2. What kind of work you do.

Your insurance rate depends on what kind of business you have and what kind of work you do.

To illustrate, let’s compare an auto repair shop with a retail store. The auto shop does welding and stores many chemicals and flammable liquids. The retail store, on the other hand, only has clothes. The auto repair shop is more likely to face a fire, so they’ll probably pay more for their insurance.

Bottom line, some things are more likely to burst into flames. And that affects your insurance rates.

Pro tip: Depending on your business, you may be able to get your property insurance in a business owner’s policy to save money.

3. Your building’s defenses against fire.

Bear with us as we talk about fire some more.

The more defenses your building has against fire, the better your insurance rates. Protecting your building can come from without (your local fire department) and within (fire controls installed in your building.)

As far as external protection from fire, the ISO has come up with a way to rank the quality of the fire department near you (as well as other fire control measures.) They score it on a scale from 1-10, with one being the best and 10 being the worst. To come up with this number, they evaluate the quality of your local fire department, the available water supply, the effectiveness of your alarm system, and the strength of the communication system.

Of course, the insurance company isn’t just looking at your fire department. They’ll also look at your building’s firefighting tools. Do you have fire doors? Sprinklers? Fire extinguishers? An alarm system? These things can help minimize damage from a fire, something that insurance companies like to see.

You’ve probably noticed a pattern here:

The more protected you are from fire, the lower your insurance rates are likely to be. So, you might want to brainstorm how you can protect your business from fire.

4. Your business’s risks.

Now, this may surprise you, considering what we’ve discussed thus far:

Insurance companies aren’t only concerned with fire when they’re considering the cost of business insurance.

They’re also looking at other exposures, or risks that your business faces. They’ll look at your location to see how susceptible you are to natural disasters and man-made hazards. (For example, they might look at your area’s crime rate.)

We can talk about factors that affect property insurance rates until we’re blue in the face, but the best way to get a truly accurate idea of how much your commercial property insurance will cost is to get a business insurance quote. Our business insurance professionals would be happy to help you save on your rates by shopping around for your insurance. All you have to do to get in touch is fill out our form or give us a call today.


What’s a business owner’s policy and can I get one for my Atlanta business?

A business owner's policy, or BOP, combines three different types of business insurance.

A business owner's policy, or BOP, combines three different types of insurance.

Have you ever seen one of those commercials for a hair care product that claims it’s shampoo and conditioner, all in one? Believe it or not, there’s an almost-equivalent for small-to-medium sized businesses when it comes to business insurance. It’s called a business owner’s policy, but since no cool coverage is complete without a nickname or acronym, it’s called a BOP. Basically, a BOP is handy to have because it combines several coverages into one convenient policy. You can get the coverage you need for your business in a simple, neat package – and it’s way better than 2-in-1 shampoo/conditioner.

Let’s dig deeper into this insurance mystery.

What does a business owner’s policy include?

There are three main coverages that a BOP can bundle together for your insurance convenience. Those coverages are…

1. Commercial property insurance.

What it does: Commercial property covers losses that happen because of common perils, like fire. It can cover you for your office equipment, furniture, inventory, machinery, raw materials, computers and other such essential business items. Plus, you know, the building itself.

2. General liability.

What it does: General liability is your “slip-and-fall” insurance. It covers your legal responsibility if your business causes harm to someone else, up to your policy’s limit. It will usually cover attorney fees for defending your business in court and the medical fees of anyone to whom your business caused bodily harm. It can also help in the event of a property damage claim.

3. Business interruption insurance.

What it does: Business interruption puts lost income back in your business’s pocket if you get hurt by a covered disaster that causes you to close temporarily. While property insurance helps you rebuild your business, BII helps you make sure that there’s still money in the bank when you have your grand reopening. It reimburses you for lost income.

Together, these coverages form the foundation of a small business insurance plan. Of course, they don’t cover every disaster or loss that could befall your business, so you may have to consider getting additional coverages if necessary.

Is my business eligible for a business owner’s policy?

Now, not every business is a candidate for a BOP. As we said before, BOPs are most appropriate for small to mid-sized businesses. Apart from that, there are a few checkmarks your business may need to meet before being stamped for BOP approval.

  • A physical location (whether it’s your home or premises – you may be able to insure a home-based business with a BOP)
  • Property that can be swiped (think product, cash, furniture, digital property, etc.)
  • Risk of lawsuits
  • Fewer than 100 minions employees
  • Fewer than $5 million in sales annually

Aside from these basic qualifications, there are a few other things that a carrier will consider before declaring you BOP-worthy. You may or may not be BOP-able depending on your type of business, the size of your main location, your revenue, and the class of business you are. It might seem like a lot of hoops to jump through, but it’s all in the interest of making that your business has the coverage you need.

How much will a BOP cost?

The premiums for BOPs depend, of course, on a few things. Your business’s eligibility factors play a part in your insurance rates. The financial stability of your business does, too. The building itself also gets considered, as do security features and fire hazards. The general rule of thumb for insurance is the more risk you have, the higher your rates. Insurance companies are highly allergic to risk, remember.

Pro tip: You might qualify for a discount if you have a security system. However, there are a few things you should know before hiring a company to install a commercial security system.

While insurance rates vary from business to business, the bottom line is that it’s important to make sure that you have enough coverage for your business and that there are no gaps in your insurance. That might mean adding some extra coverage to a business owner’s policy or forgoing a BOP entirely in favor of getting bigger policies.

BOPs are great when it comes to protecting small businesses. If you’re BOP-able, you get to enjoy commercial property, general liability, and business interruption insurance all bundled into one convenient policy. It is, however, important to consider that you may need to add coverages to your business owner’s policy. If you think your business might be a candidate for a BOP, congratulations! Insurance just got a whole lot easier.

Want to get a free quote on your business insurance? BOP or no BOP, we’d love to help you find the insurance your business needs to protect it from the risks you face every day. We’d love to help you save on said insurance, too. To reach one of our friendly agent-folk, all you have to do is fill out our online quote form or give us a call today. Then we can help you get started with getting your insurance!