Commercial Property Insurance

Commercial property insurance can help protect the physical assets you need to operate your business, including:

• Inventory

• Business equipment and furniture

• Structures you own

Your insurance coverage could provide financial help if your property is damaged by:

• Water

• Fire

• Wind

• Vandalism

• Theft

• And other risks

Even if you rent a space and don’t own the building where you work, you may need insurance to help protect what’s inside to avoid a large financial loss.

Commercial property insurance can provide a wide range of coverage for small businesses. Common items that it can help protect include:

• Inventory

• Furniture

• Fixtures

• Equipment

• Business income

• Structural damage

• Broken windows

• Flooring

There are four basic types of coverage included with a commercial property insurance policy:

1. Goods, gear and inventory

A claim can provide financial help for your business property after a covered event. This coverage is also known as business personal property insurance, or BPP insurance.

2. Business income interruption

This coverage can help protect you against losing business income and related expenses if you have to temporarily close due to fire, water damage or another event covered by your policy. It’s also known as business interruption insurance or business income insurance.

3. Equipment breakdowns

You can add an extra layer of protection that could help your business if your equipment is damaged from a covered event, such as a power surge or mechanical failure.

4. Buildings

Commercial property insurance can help pay for repairs to real estate and your commercial building if you own it.

Your commercial property coverage can help pay for damage to your business property caused by fire, wind and hail. That can include damage related to weather events, including:

• Wildfires

• Tornados

• Windstorms

NEXT doesn’t offer insurance protection for earthquakes, volcanoes or floods. Flood insurance is often purchased through the federal government’s National Flood Insurance program.

NEXT policies can provide financial help after some qualifying man-made disasters, including rioting and vandalism.

Commercial property insurance can cost as little as $14 a month for some low-risk businesses.†

That total value of your business property and your operations will influence the exact price you’ll pay. When you get a free quote, you’ll be asked about things like:

• The type of work you do.

• The value of your business property.

• Number of employees.

• The state where you work.

• Your claims history.

• How high you set your limits.

• Your work experience.

Learn more about commercial property insurance costs.

A Business Owner’s Policy (BOP insurance) combines commercial property insurance with general liability insurance.

When both are combined in one package, it can be less expensive than buying them separately.

A BOP can cover items included with commercial property insurance as well as general liability risks, such as slip-and-fall accidents and damage to other people’s property.

Learn more about Business Owner’s Policy coverage.

Commercial property insurance can include protection against theft of your business property.

Goods, gear and inventory coverage — also known as business personal property — can help if someone steals property from inside or within 100 feet of your business.

You might also consider tools & equipment coverage if you frequently work at different locations. If someone steals your power tools from a job site, for example, this insurance could help pay for their replacement. Tools and equipment coverage from NEXT is only available for contractors and cleaning businesses.

Learn more about tools and equipment insurance.

Commercial property insurance can provide financial help if you:

• Run your business out of a physical location, such as a leased or owned office, store, garage or your home.

• Own or lease equipment or inventory that could get stolen or damaged.

• Would have to close your business if your property is destroyed or damaged.

Some of the most common types of businesses that purchase commercial property from NEXT include:

• E-commerce

• Retail stores

• Restaurants

• Sports and fitness

• Arts and entertainment

• Beauty and personal care

You can file a claim anytime online or with the NEXT app.

You’ll be asked to share the details of what happened and to provide relevant photos and documentation.

We strive to make claims decisions as quickly as possible so you can get back to work.

Learn more about how claims work at NEXT.

When you’re ready to explore coverage options for your business, get an instant quote and buy online in about 10 minutes.

If you have additional questions, our licensed, U.S.-based insurance advisors are ready to help.

Do I need Commercial Property insurance if I don't own the building?

If you lease or own an office or studio you might need commercial property insurance to protect what’s inside the building.

Commercial property insurance can help protect many of the things you need to do business, including your equipment, inventory, furniture and other items.

Who is responsible for building insurance on commercial property?

Building coverage is designed to help protect your physical building and can help pay for damage to the structure.

Building coverage can help protect the structures on your property if you own real estate. And if you rent your space, your lease may require you to purchase some type of commercial property coverage.

How do I know if I need Commercial Property insurance or a Business Owner’s Policy (BOP)?

A Business Owner’s Policy (BOP insurance) combines two important types of business insurance — general liability insurance and commercial property insurance — into one package that is sometimes less expensive than buying the coverage separately.

A commercial property policy covers your goods, gear, inventory and structures that you own. A BOP insurance policy covers all of these items as well as general liability risks, including damage to other people’s property, injuries to customers or vendors, and some legal fees.

If you know your business needs both general liability and commercial property coverage, BOP insurance may be the way to go.

You can get up to a 10% discount when you purchase more than one type of coverage with NEXT. If you already have general liability coverage with us, you can add commercial property directly through your customer account.

Is Commercial Property insurance mandatory or legally required?

Commercial property insurance is typically not legally required for your business.

However, oftentimes property owners will require you to have it when you sign a lease. Or a lender might require you to have coverage if you buy property with a loan.

How much Commercial Property insurance do I need?

The amount of coverage you’ll need for commercial property insurance depends on your business and specific needs. Every business is unique and has its own set of variables, such as:

• Property value: You can choose your coverage limit based on the value of the property you want insured.

• Location: Rates might be higher or lower depending on where your business is located.

• Structure: This refers to the actual building itself and how it’s built. New or upgraded structures can sometimes reduce rates.

• Protection: Fire-retardant materials, sprinklers and alarms can help reduce rates. It can also help if the building is close to a fire station or hydrant.

• Usage: What the building is used for, and the number of employees and customers you have, can alter your risk and your rates.

How do I determine the value of my business property?

It can be helpful to have a good idea of how much your business property is worth before you begin a quote for a commercial property policy.

Knowing the value of your inventory and equipment will help you decide on the amount of coverage you need (so not overspend on insurance).

Commercial property insurance policies are based on what it would cost to replace property; that’s known as its actual cash value, and it’s different than its replacement value.

The actual cash value is how much your property is worth in its current condition.

The replacement value is the amount of money it would take to replace or repair your property if it’s damaged or destroyed.

Read more about actual cash value and replacement cost.

Can I add an additional insured to my Commercial Property policy?

Yes, NEXT customers can easily add an additional insured and share their certificate of insurance through their customer account.