Commercial Property

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 What is commercial property insurance?

Commercial Property insurance covers company owned physical assets, used to run your business.  The coverage can be called business property or commercial property insurance. Included in this category are owned buildings, your tools and equipment, inventory, computers, appliances, furniture and even expensive paintings you have hung in the reception area. Through a business property insurance policy, all these assets can be covered in case there is a theft, fire or damage occurring through natural disasters such as hurricanes.

Flood insurance is almost always covered on a separate policy, earthquake coverage may or may not be able to be added to a property policy, just check with your agent if you are located in an earthquake zone. Purchasing commercial property insurance enables the property owner to protect the business assets against loss so he can resume operations as quickly as possible without incurring any expenses other than the policy deductible(s).

Business Interruption (aka Business Income) coverage is also covered under a commercial property policy. This coverage replaces income lost due to direct damage to your location from a covered peril which forces your business to close. Business Interruption coverage is not automatically included in a property policy, you must request it be added. We recommend purchasing a minimum limit of 12 months of Business Income less any non-continuing expenses.  Lost revenue, day-to-day ongoing expenses like payroll for key employees, expediting replacement equipment and relocation to a temporary space are just some of the items that this type of insurance will pay for.   Many businesses do not survive after a major property loss or supply chain disruption. Business income coverage can help get your business operational and profitable again.

Why should you insure your business property?

Running a business is not child play and as the owner, it is up to you to make good decisions for your business. If you are a distributor and fire engulfs your building and inventory, wouldn’t you like to be confident that your business can recover with as little disruption as possible? If your office is burglarized and all the computers and other contents of the office are stolen, a Special Form Business Property policy would be available to pay your claim and if you have replacement cost coverage, you will be able to replace your old property with new. If you have on your building or contents the bank or finance company will require evidence of property insurance.

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Let us look further into the perils covered under Special Form Commercial Property insurance to be fully aware about why business owners must consider business property insurance.

Burglary and Theft

Theft of your office computers and equipment can put a stop to your operations. Without a special form property policy, you will not have any coverage to replace your stolen property and, recovery from this type of loss will be difficult.

Wildfires and Hurricanes

Imagine that you own an electronics shop in an area prone to wildfires. Due to drought conditions and record-breaking heat, a wildfire spreads to your business. Your business suffers a total loss and everything is gone. A small business owner might not have the financial building and contents. Commercial property insurance will pay for a new building and contents if you have replacement cost coverage.

Vandalism, Riot and Civil Commotion

Damage to your building insured caused by a riot in which participant vandalize your location, breaking windows or causing intentional damage is insured.


With today’s consumer large amount of sensitive electronic equipment, smart TVs, laptops, tablets, desktop computers, printers and smart speakers, all can be damaged with one strike of lightning to your building unless you have lighting protection.  Surge protectors used with your electronic equipment help but may not totally protect your equipment.

Third- Liability

Be aware of your policy's exclusion. Some typical exclusions on a special form property include:

  • War/Nuclear damage
  • Off premises utility
  • Water, Flood, Tidal Waves or overflow of body of water
  • Earthquake
  • Employee theft
  • Wear and tear, rust, corrosion, decay, deterioration
  • Ordinance and law
  • Animals
  • Land
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small business:

Businesses have . Right from the conception of your idea to the execution and the running of it, your business goes from the early stage to a fully established and profitable one. You may require different insurance for each phase of your business.

Start up

While in the startup stage, the business owner buys or rents commercial space. He must set up the location to serve the operations planned. He may need to update the wiring for the internet, computers and printers. Acquisition of the appropriate equipment, furniture and fixtures,supplies, hand tools, may all be needed. If there is a business loan, the bank or financing company will require evidence of property insurance before they will provide financing to you.


As your sales and customer acquisition increase, you will want to consider insuring for loss of business income in the event the business suffers damage from a covered peril and has to close for a period of time. Business interruption along with extra expense should be purchased which will provide a cushion for lost income. This coverage may continue to supplement your income even after you are reopened, since sales are down from prior year because your customers don't realize you have reopened.  Remember to keep an eye on the value of your business assets when compared to your business contents limit on your policy to assure you have sufficient limits insured.


At this point in your business, you may be financially more secure, build up a nice business bank account and are willing to accept more risk. You may consider increasing your deductibles, self-insuring some exposures or increasing limits on all policies. If you purchase new equipment with the latest technology, you will want to keep an eye on your property insured values and adjust accordingly to cover any new purchases.

Here is a list of endorsements that can be added to a commercial property insurance policy:

  • Business Interruption- for a covered claim will replace lost income and provide reimbursement for ongoing expenses to get your operations up and running.
  • Coverage for outdoor property such as owned satellite dish, antennae, fences, gazebos, etc.
  • Off premises property for instance if you have a booth at a convention or event.
  • Building Ordinance
  • Seasonal adjustment in values for an inventory
  • Coverage for customer's property in your care
  • Replacement Cost Valuation
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Other types of policies coverage Business Assets:


Why trust us?

We offer all types of commercial property insurance and will make sure no aspect of your operation has been overlooked. We walk you through our coverage plans to help you make an informed decision. We understand your needs and help you select the coverage best tailored for your business needs.

Click here for more Frequently Asked Questions on Commercial Property Insurance. 

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