Commercial insurance rates across the United States increased by 2.8% during the second quarter of 2025, representing a slight decrease from the 3% rate hike recorded in the first quarter, according to data released by Novatae Risk Group.
Commercial auto insurance experienced the largest rate increase at 6.7%, while umbrella and excess liability coverage rose 5%. General liability rates climbed 3.7%, and commercial property insurance increased 3.6%.
“Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter,” said Richard Kerr, CEO of Novatae Risk Group. “We are also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”
Several coverage areas showed more modest growth. Business interruption insurance rates rose 2.3%, while business owners’ policies increased 2.6%. Professional liability coverage went up 1%, and cyber liability rates climbed 1%.
Workers’ compensation rates remained flat, as did employment practices liability insurance, which showed no change during the quarter.
The data revealed variations across different account sizes. Small accounts, defined as those up to $25,000, saw the highest rate increases at 3.7%. Medium accounts, ranging from $25,001 to $250,000, experienced 3.3% increases. Both large accounts ($250,001 to $1 million) and jumbo accounts (over $1 million) faced 3% rate hikes.
Industry sectors showed mixed results. Transportation led with 6.3% rate increases, followed by energy at 3.3% and habitational coverage at 3%. Manufacturing rates rose 2.7%, while service industry coverage increased 2.3%. Contracting saw 2% growth, and public entity coverage experienced the smallest increase at 1.7%.
The quarterly analysis, conducted through the Risk & Insurance Alliance, provides market intelligence for brokers, underwriters, and risk managers operating in the current insurance environment. The report represents ongoing market analysis aimed at helping insurance professionals navigate current market conditions. MarketScout, a division of Novatae Risk Group, has tracked commercial insurance trends since 2000.
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