Business insurance has been getting cheaper in most countries in 2026, and Australia and New Zealand have seen some of the biggest falls. But liability and vehicle cover in the US are still rising, and UK motor prices have started to climb again. With prices moving this much, your next renewal is a good time to shop around and check what you are covered for.
The big picture: a softer market
Broker Marsh tracks commercial insurance prices around the world. It says prices fell 6% on average in the June quarter of 2026. That was the eighth fall in a row.
- Pacific region, mainly Australia and New Zealand: down 13%.
- United Kingdom: down 8%.
- Canada: down 7%.
- United States: down 2%.
Property insurance led the fall, down 12% worldwide. Liability insurance, which Marsh calls casualty, went the other way. It rose 2% worldwide and 7% in the US. Marsh said casualty prices fell in every other region.
New Zealand and Australia: more choice, lower prices
In the Pacific region, property insurance prices fell 15% in the June quarter of 2026. Marsh said Australian businesses make up most of this region and the softening there has gone deeper than almost anywhere else.
In New Zealand, the head of the New Zealand Underwriting Agencies Council said in August 2026 that brokers report a continuing soft market across most commercial lines, with more insurers wanting the business. He warned that conditions differ by risk. Natural hazard exposure, the type of work and how specialist your business is still affect what you pay.
Lower prices do not always mean better cover. In its 2025 market update for tradies, Marsh Australia warned that excesses on injury claims were rising, especially where subcontractors are used. It also said exclusions for silica dust and PFAS were getting tighter.
Victoria: new Home Warranty scheme
From 1 July 2026, Home Warranty replaced Domestic Building Insurance in Victoria for new eligible domestic building work. The Building and Plumbing Commission runs it. Key points for builders:
- It generally applies to eligible work over $20,000 on homes up to three storeys.
- Maximum cover is $400,000, subject to limits and exclusions.
- Builders must pay the premium for each eligible job and give homeowners the required information.
- New Minimum Financial Requirements replace the old eligibility check. Each builder has a Maximum Construction Capacity they must stay within.
- Policies issued up to 30 June 2026 stay under the old scheme.
United States: liability and vehicle cover still rising
US prices are rising more slowly than before, but they are still going up for the covers tradies use most. WTW said US commercial prices rose 0.5% overall in the June quarter of 2026, with umbrella and excess liability still showing the biggest rises.
The Ivans Index tracks premium changes at renewal. For August 2026 it showed:
- Commercial auto: up 3.58%.
- General liability: up 4.18%.
- Umbrella cover: up 6.82%.
- Business owners policies: up 5.44%.
- Workers compensation: down 1.1%.
United Kingdom: motor prices turn upward
Data firm Defaqto says quoted motor insurance prices were 2.7% higher at the end of September 2026 than a year earlier. It was the first yearly rise since 2023. The Association of British Insurers said insurers paid a record £3.2 billion in motor claims in the June quarter of 2026, with the average claim up 4% to £4,900. These figures are for car insurance, not vans, so check your own van renewal closely.
What it means for your business
- Shop around at renewal, especially in Australia and New Zealand, where more insurers are competing for business.
- Read the fine print, not just the price. Check excesses, subcontractor terms and exclusions such as silica dust.
- In the US, budget for higher liability, umbrella and vehicle premiums, even as property cover eases.
- In Victoria, make sure every eligible job has Home Warranty in place and stays within your construction capacity.
- Keep good records of safety practices, vehicle security and tool storage. Insurers price on risk, and a well-run business is easier to cover.
Sources
- Global commercial insurance rates fall 6% in Q2 2026, Marsh
- Global commercial insurance rates fall 6% in Q2, Pacific posts second-steepest regional decline, Insurance Business Australia
- NZ market keeps softening but chasing price alone is the real risk, Insurance Business NZ
- Tradie insurance market trends 2025, Marsh Australia
- What builders need to know about new insurance, Building and Plumbing Commission Victoria
- WTW, Ivans reports signal more commercial rate moderation, Insurance Journal
- Motor premiums rise year on year for first time since 2023, Insurance Business UK
This article is general information based on sources available in October 2026. Rules, prices and figures change, so check the current details with the official source where you work.