How much does business insurance cost? Typical budget from 10 to 200 employees

Business insurance cost is best reasoned as a percentage of turnover: 0.3% to 1% for a services or software company, 1% to 2% for an industrial or logistics business, 2% to 5% in construction, where the ten-year liability policy (décennale) weighs the most. In euros, a 10-employee SME in France typically spends €3,000 to €8,000 a year excluding employee benefits; a 200-employee company commonly exceeds €200,000 once health and death-and-disability cover are counted. Between two comparable companies, the gap reaches 20% to 40%.

How much does business insurance cost as a percentage of turnover?

The premiums-to-turnover ratio is the indicator finance teams track: it adds up every property and liability premium (professional liability, commercial package, fleet, cyber, D&O) and divides the total by the year's turnover, excluding employee benefits, which belong to payroll costs.

The ranges below are those observed on the French market in 2026; there is no official statistic by sector. For scale, France Assureurs puts commercial property insurance premiums at €9.4 billion in 2024, up 8.1% after 10.9% the previous year.

The rate falls with size: an SME with €20 million in turnover does not pay ten times the premium of an SME with €2 million.

Which lines weigh the most in an SME's insurance budget?

In a company of 10 to 200 employees, three lines generally concentrate more than 70% of the property and liability budget: property damage with its business interruption cover, professional liability, and the vehicle fleet when there is one.

Professional liability insurance is the policy that compensates third parties, clients first and foremost, for damage caused by a fault, error or omission in the performance of your service. It is optional for most activities and mandatory for regulated professions (health, law, construction, real estate), as economie.gouv.fr reminds. The commercial package policy (multirisque professionnelle) insures premises, equipment and stock against fire, water damage, theft and weather, with the business interruption option that compensates the margin lost while activity is halted.

Executive death-and-disability cover is a conventional minimum of 1.50% of tranche A salary, at least half of which must fund the death benefit. At 200 employees, health and death-and-disability often exceed €150,000 a year and become the first line item, far ahead of professional liability.

What insurance budget for a company of 10, 50 or 200 employees?

The profiles below are reconstructed from market ranges, for a services or technology company. A manufacturing, logistics or construction company adds property damage, environmental liability or décennale, and easily ends up at double.

A company's insurance budget therefore cannot be read only on the "insurance" line of the income statement: half, or even two thirds, sits within personnel costs.

An insurance price is not a rate you endure, it is the reflection of the quality of the information the insurer holds on your risk: two identical files, badly or well presented, get quoted 30% apart.

Why don't two comparable companies pay the same price?

Because the premium pays for a perceived risk, not a turnover figure. The insurer combines a base (turnover, payroll, asset values, number of vehicles), a rate specific to your activity, then adjustments: past claims, prevention, deductibles, limits, international exposure.

The deductible, meaning the share of each claim you keep at your own expense, is the most visible adjustment: moving from €500 to €5,000 cuts the premium by 15% to 25% on most property policies. Raising a professional liability limit from €1 to €5 million for a key-account contract does not multiply the premium by five but increases it by 30% to 60%, because claims above the first million are rare.

How are business insurance prices moving in 2026?

The market is easing after three years of increases. According to the review published by France Assureurs in March 2026, claims on professional and commercial insurance remained 25% above the ten-year average in 2025, with €935 million of large losses, which limits the decrease on property lines. January 2026 renewals showed renewed competition on good risks.

Cyber is the line going down: premiums on pure cyber policies fell 8% in 2025 despite an 11% rise in the number of policies, for a €326 million market. Construction remains on an upward slope after several décennale insurers withdrew.

Where are the 40% of savings hiding in an insurance budget?

Rarely in a cut to cover. Savings come from four sources. First, duplicates: a general liability cover present in both the commercial package and the professional liability policy, legal expenses cover bought three times. Second, outdated bases: a premium calculated on turnover from three years ago, sold vehicles still listed in the fleet.

Third, competitive tendering: on the same well-presented file, the gap between the most and least expensive quote commonly reaches 20% to 40%. Finally, calibration: deductibles too low for your cash position, oversized limits inherited from an old client contract. Each source is worth 5% to 15%; combined, they explain the 40% found in a budget that has never been audited. We detailed these levers in 10 ways to reduce your business insurance premium.

Frequently asked questions

What percentage of turnover should an SME budget for insurance?

Between 0.3% and 1% for services or software, 1% to 2% for industry and logistics, 2% to 5% in construction, excluding health and death-and-disability, which often weigh as much as everything else combined.

Which insurance policies are actually mandatory for a company in France?

Motor liability for any vehicle on the road, group health insurance funded at least 50% by the employer, and executive death-and-disability cover at 1.50% of tranche A. Add décennale and professional liability for regulated professions. The rest is optional, but often required by a landlord, a client or an investor.

How much does cyber insurance cost for an SME in 2026?

Between €1,000 and €3,000 a year for 10 to 50 employees, €3,000 to €10,000 beyond. The price depends first on demonstrated security measures, and the market is falling for mature companies.

Does a broker increase the price of insurance?

No: the broker's remuneration is a commission paid by the insurer, included in the premium, not a surcharge billed to the company. Putting several insurers in competition on a well-built file generally produces the opposite of an extra cost.

At Lesto, we rebuild your insurance budget line by line, bases updated and duplicates spotted, before consulting nine insurers on average on a single file, with an analysis delivered in 72 hours and 40% of savings identified on average. Want to know what your company should be paying? Request a business insurance quote and compare it with your current budget.