Commercial Property Insurance
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Commercial Property Insurance Quotes
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Commercial Property Insurance protects your business against damage to buildings and their contents from fire, theft, and other hazards. Think of it as Homeowner’s Insurance for your business.
Typically, Commercial Property Insurance covers:
- Buildings you own or lease (including permanent fixtures, permanent machinery, and permanent equipment).
- Business property on premises (non-permanent fixtures, machinery, equipment, computers, and inventory).
- Personal property of others (in your business’ custody or care).
There are many different types of Commercial Property coverage, and businesses can usually choose which causes of loss to cover. They can choose to cover specified perils (like fires, explosions, wind, vandalism, etc.) or open perils (all losses unless specifically excluded). As it is more comprehensive, open peril coverage tends to be the more expensive option. If your business has any vehicles, don’t forget to compare quotes for the best commercial auto insurance.
What Commercial Property Insurance Is Not
Commercial Property Insurance is only one form of business/commercial insurance. It is often purchased in conjunction with Commercial General Liability, Commercial Vehicle, Commercial Crime, Commercial Umbrella, and Workers’ Compensation Insurance.
In most cases, Commercial Property Insurance does not cover losses incurred by tenants renting space in your building.
Who Needs Commercial Property Insurance?
All commercial property owners, including those doing business on their own property and those leasing space to other parties, need some form Commercial Property Insurance.
Commercial Property and Commercial General Liability are the two most basic types of insurance recommended to all business start-ups.
Things To Think About
Depending on policy’s language, exclusions, and endorsements, there are a number of things that could cost extra to insure:
- Data, papers, records, currency, and securities.
- Goods in transit.
- Damage from boilers and machinery.
- Earthquakes, floods, glass damage, and crime.
What you pay for Commercial Property Insurance depends on what your building is made of, the type of business (high risk or low risk) you do there, your location, your potential exposure to other hazards, and how well protected from fire you are (e.g. sprinklers, extinguishers, alarms, etc.).
Commercial Property Insurance is often bundled together with other types of commercial insurance into a Business Owners Policy or a Commercial Package Policy at a lower rate for each individual component.
There may be a coinsurance penalty if the full value of the building isn’t insured at the time of loss, so it is important to get adequate coverage.
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Frequently Asked Questions (FAQs)
Get clear answers to common insurance questions and important details to guide your coverage decisions.
What is commercial property insurance and do I need it?
Commercial property insurance protects your business’s physical assets, including buildings, equipment, furniture, and inventory, from risks like fire, theft, vandalism, and certain weather-related events. This type of insurance is essential for businesses that own or lease property, as it helps ensure financial recovery after damage or loss occurs. While not required by law, landlords often require commercial property insurance as part of lease agreements. It is also highly recommended for business owners to protect their investments against unforeseen risks.
What does commercial property insurance cover?
Commercial property insurance typically covers damage to your building and business property caused by events like fire, theft, vandalism, and certain natural disasters. It also covers business personal property, such as computers, office supplies, and machinery. Some policies include additional options like coverage for business interruption and equipment breakdown.
What is not covered by commercial property insurance?
Standard commercial property insurance usually does not cover damage from floods, earthquakes, or sewer backups. It also excludes intentional damage caused by the business owner or employees and damage to customer property.
How can I extend my coverage?
You can extend coverage by adding endorsements such as inland marine insurance, which protects property while it is in transit or stored off-site, or by adding flood and earthquake coverage to your policy. Business interruption insurance can also be added to cover lost income during temporary closures due to property damage.
How much does commercial property insurance cost?
The cost of commercial property insurance varies depending on factors such as the size and location of your business, the value of your property, and your risk exposure. Small businesses can expect to pay between $1,000 and $3,000 annually for coverage, with costs increasing based on additional coverage and higher-risk locations.
How can I reduce my commercial property insurance premiums?
To reduce premiums, consider raising your deductible, bundling your policies, maintaining a good credit history, and implementing safety measures like smoke detectors and security systems. Additionally, evaluate your property for potential risks and take preventive actions to lower insurance costs.
How do I choose the right commercial property insurance policy?
Start by assessing your business’s risks and the value of your assets. Consult with an insurance agent to determine the coverage you need and compare quotes from different providers. Consider factors like replacement cost versus actual cash value coverage, and ensure your policy includes the necessary endorsements for your specific business risks.
