Business insurance is getting cheaper, except the two policies local owners can't skip
Commercial premiums fell in mid-2026 for the first time in years. Commercial auto and umbrella still rose. What's driving it and what you can control at renewal.
For the first time in years, the average business insurance renewal got cheaper. In the second quarter of 2026, commercial premiums fell an average of 2.0% across all account sizes, according to the Council of Insurance Agents & Brokers (CIAB). Small accounts dipped 0.5%, their first decrease after a 1.1% increase the quarter before.
That headline hides the two policies most local service businesses depend on.
What’s going up and what’s going down
| Coverage | Q2 2026 change | Who it hits |
|---|---|---|
| Commercial auto | +4.5% | Anyone with work vans or trucks |
| Umbrella | +5.3% | Contractors, restaurants, anyone a client requires it from |
| General liability | Up, single digits | Most businesses with customers on-site or work in homes |
| Workers’ comp | -3.2% | Employers; 18th straight quarter of decreases |
| Commercial property | -6.3% | Owners of buildings and equipment |
Sources: CIAB Q2 2026 for auto, umbrella, workers’ comp and property; Marsh McLennan Agency and Baldwin for general liability, which Baldwin puts at +4.5%.
Umbrella has now risen for 35 straight quarters. Commercial auto rose about 6% in the first quarter before easing. Location matters too: brokers single out Louisiana, Texas and Florida as the toughest states for auto.
Why auto and liability keep climbing
Brokers point to the same causes: larger jury awards (so-called nuclear verdicts), rising repair costs and more total-loss accidents. Commercial auto has run at a loss for insurers for most of the past decade, according to AM Best figures cited by Marsh McLennan Agency. When an insurer loses money on a line, everyone’s rate goes up, even owners with clean records.
What you can control at renewal
- Shop it every year. CIAB reports more insurer appetite and more willingness to cut price to keep or win clients. A marketplace like Insureon gets several quotes from one application, and NEXT Insurance quotes small trades online.
- Bundle where it’s cheap. Property is soft. A business owner’s policy that pairs property with general liability is often cheaper than buying them apart.
- Document your drivers. Insurers increasingly want motor vehicle records, written driving rules and, for fleets, telematics. Owners who can show this get better auto terms.
- Match limits to contracts, not habit. Check what your commercial clients actually require before you buy a bigger umbrella.
- Ask about payroll and class codes. For workers’ comp, wrong job classifications are one of the most common causes of overpaying.
Our cleaning business guide lists median monthly costs for each policy a new service business typically needs.
This article is general information, not insurance advice. Rates depend on your state, trade, claims history and carrier.
Sources: The Council of Insurance Agents & Brokers, Q2 2026 market survey (summary via IOA) · Baldwin Group, Market Pulse, Q2 2026 · Marsh McLennan Agency, 2026 U.S. State of the Market