
Businesses face many risks, and most choose to protect themselves with property insurance. Unforeseen events such as fire, flood, and storm damage can have a devastating effect on your business’s property if it is not well covered by an appropriate commercial property insurance policy.
Commercial property insurance is a form of property insurance that covers commercial buildings and their contents. It also includes business equipment, such as computers and manufacturing machinery, and inventory.
You’ll need commercial property insurance if your business operates in an office building or retail store, has a warehouse or storage area, or uses vehicles or machinery at work. You may also need it if you rent space in a mall or shopping center where customers come into contact with the public or if you sell products directly to customers at a storefront location.
Common claims examples
Building coverage. This pays to repair or replace the structure of your building in the event of damage from natural disasters such as fire or windstorms. It also includes coverage for liability if someone slips on a wet floor inside your store or restaurant and sues you for damages.
Business personal property coverage. This pays to repair or replace items such as furniture, inventory, computers, and other equipment that are damaged by natural disasters or other covered events. It also includes coverage for liability if someone slips on spilled coffee grounds in your shop and sues you for damages.
Commercial property insurance vs. business owners policy (BOP)
A commercial property insurance policy covers the property you own, lease or rent. The coverage typically extends to business interruption, theft, and damage to the building, machinery, and other property. This type of insurance is different from a business owner’s policy (BOP), which covers business-related expenses under a package policy such as liability, workers’ compensation, and auto insurance.
How much does commercial property insurance cost?
The cost of commercial property insurance is based on a variety of factors, including the value of your building and the amount of coverage you choose. The cost of commercial property insurance, based on many factors, can be anywhere from $50-$1,000 annually to remain insured.
No matter what type of business you run, you need to have the right coverage in place to protect your assets. Commercial property insurance can protect your physical assets—from buildings and equipment to furniture and inventory—in the event of damage. Together with other business-coverage, it can help keep your organization afloat after a disaster.