August 2025 Insurance Trends: What SMBs Need to Know

Running a small or mid-sized business comes with enough challenges—managing insurance costs shouldn’t feel like deciphering Wall Street reports.

Every month, the Ivans Index tracks how commercial insurance renewal rates are trending nationwide. The August 2025 results are in, and there are a few key takeaways that matter directly to your bottom line.

Commercial Insurance Rates Are Still Climbing, But at Different Speeds

• Commercial Auto: Renewal rates slowed slightly, now averaging +7.19% (down from 7.96% in July).
• Businessowners Policy (BOP): Continued climbing to +7.65% (a bump from 7.55%).
• General Liability: Saw one of the bigger jumps, moving to +5.91% (from 4.98%).
• Commercial Property: Ticked down slightly to +7.84% (from 7.98%).
• Umbrella Liability: Rose to +9.02%, the highest among all lines.
• Workers’ Compensation: Still trending negative at –1.45%, but that’s actually good news—premiums are still decreasing year over year.

What This Means for SMBs

1. Auto Fleets & Delivery Vehicles
   If your business owns company cars or vans, you may see some relief compared to earlier this year. But, rates remain elevated. Now is the time to revisit fleet safety programs, driver training, and telematics—steps that can earn discounts.
2. Protecting Your Core Business (Businessowners & Property)
   BOP and property insurance continue to trend upward. For businesses that rent or own space—or rely heavily on equipment and inventory—this means budgeting for higher premiums at renewal. It’s also a reminder to double-check coverage limits: rebuilding and replacement costs are still affected by inflation.
3. Liability Coverage
   Both General Liability and Umbrella are climbing. With lawsuit costs rising, insurers are charging more to provide extra protection. SMBs often underestimate their liability exposure, but a single claim can easily pierce through a $1M policy. Umbrella coverage, while pricier, is becoming more critical.
4. Workers’ Compensation
   The lone bright spot—rates remain in the negative. If your payroll has grown, this can help offset increases elsewhere. Strong safety programs and low claims history can keep this trend working in your favor.

Why Staying Ahead Matters

The Ivans Index pulls data from over 120 million transactions across 700+ carriers and 38,000 agencies. In short: these numbers reflect what’s actually happening in the market right now.

For SMB owners, the lesson is clear:

• Don’t wait until renewal time to discover higher premiums.
• Review your policies proactively with your insurance broker.
• Explore risk management strategies that can reduce claims and keep costs in check.

Final Takeaway

Insurance costs for small and mid-sized businesses are still trending upward, especially in liability and umbrella coverage’s. Workers’ comp is the exception, offering some balance.

By planning ahead, SMBs can manage these shifts. They can do this by working closely with a knowledgeable advisor. This approach protects both their people and profits.