Commercial property insurance provides protection for the physical assets of your business, including the building or office space, equipment, inventory, furniture, and more. It can cover losses from a variety of incidents, such as fires, storms, theft, vandalism, and other damage.
Commercial property insurance policies can be customized to fit the needs of your specific business. Some policies may also include business interruption coverage, which provides reimbursement for lost income and expenses if your business is unable to operate due to a covered event.
It's important to review your policy carefully to ensure that you have the right coverage for your business property. Keep in mind that certain types of damage, such as floods or earthquakes, may not be covered under a standard commercial property insurance policy and may require additional coverage.
Protect your business property with commercial property insurance
Commercial property insurance helps protect your business by covering the physical assets that your business owns or leases. This can include:
Buildings or structures: The physical building or structure that your business occupies, as well as any additions, fixtures, or improvements.
Business personal property: This can include items such as equipment, furniture, inventory, and supplies that are used in the operation of your business.
Outdoor property: This can include items such as fences, signs, and landscaping.
Loss of income: If your business suffers a covered loss, such as a fire or natural disaster, and you are unable to operate for a period of time, commercial property insurance can provide coverage for lost income and expenses.
Extra expenses: If your business is forced to relocate due to a covered loss, commercial property insurance can help cover the costs of moving and setting up temporary operations.
It is important to note that not all types of losses are covered by commercial property insurance, and the specific coverage and limits of your policy will depend on the terms and conditions of your policy. It is always recommended to review your policy with an insurance agent to ensure that you have the right coverage for your business.
What's covered by commercial property insurance
What you need to know about business property insurance
Business property insurance provides coverage for physical assets such as buildings, equipment, inventory, and outdoor fixtures in case of damage or loss caused by various perils such as fire, theft, vandalism, and severe weather events. In addition to covering the cost of repairing or replacing damaged property, business property insurance may also provide coverage for loss of income due to the temporary shutdown of the business operations resulting from a covered event. By investing in a comprehensive business property insurance plan, business owners can protect their assets and ensure the continuity of their operations in the event of unexpected damage or loss.
Determining the value of your business property
Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.
Replacement cost (RC) refers to the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality without deducting any amount for depreciation.
Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, less depreciation.
Typically, the premiums for policies covering property insured on an ACV basis are lower because a lower limit is used due to the deduction for depreciation. This amount might not be enough if you elect to insure the property on a RC basis.