What does Commercial Property insurance cover in Indiana?
Commercial property insurance can help provide coverage for your brick-and-mortar location, equipment, inventory and other physical assets you need to operate your business.
When certain types of accidents or emergencies affect those assets, you may be able to submit a claim to get help covering the costs of replacement and repair.
Indiana commercial property insurance could help your business in the following situations:
- Structure fire: If a fire breaks out at your business and damages your assets, commercial property insurance could help pay for repairs and replacements
- Water damage: Commercial property insurance can help cover the costs to address water damage from burst pipes and other types of leaks. Note: This does not include flood coverage (see below for more details).
- Theft or vandalism: Commercial property insurance can cover property that is stolen or vandalized inside or within 100 feet of your business.
Damage from water, fire and wind are generally included as covered events. In addition, commercial property insurance typically covers man-made events like theft and vandalism.
Coverage can vary, so Indiana business owners should read their policy documents carefully to find out exactly what’s covered and what’s excluded for their business.
Commercial property insurance can protect different types of property
Commercial property insurance policy can help protect various types of assets, such as:
- Structural damage
- Inventory
- Furniture
- Equipment
- Windows
- Flooring
- Fixtures
- Business income
Types of Commercial Property insurance coverage
Indiana commercial property insurance from NEXT can include these four basic types of coverage:
Goods, gear and inventory
Commercial property insurance can help cover repair or replacement costs if your inventory, equipment or furniture is affected by a covered event. This coverage is also known as business personal property insurance or BPP insurance.
Example: If thieves break into an Indianapolis electronics store overnight, commercial property insurance could help cover the costs to replace stolen inventory.
Business income interruption
This type of Indiana property insurance may be able to help with lost income and other related expenses during a temporary closure due to a covered event. This is also known as business interruption insurance or business income insurance.
Example: If a kitchen fire forces an Evansville bakery to close down for two weeks, commercial property insurance can help cover the income lost during the time it takes to make repairs.
Equipment breakdowns
With this coverage, you can get help with replacement or repair costs if your equipment is damaged due to a power surge or mechanical failure.
Example: If the electronic circuit control board in a South Bend restaurant’s fridge malfunctions and causes all of the food to spoil, commercial property insurance can help pay to fix the problem.
Buildings
If you own and use a building for business purposes, commercial property insurance can help pay for repairs after a covered event. You typically don’t need this coverage if you’re leasing or renting a commercial space.
Example: If a tornado causes considerable damage to a Fort Wayne hardware store, commercial property insurance could help cover repair and replacement costs.
Does Commercial Property insurance help pay for damage from natural disasters in Indiana?
NEXT’s commercial property coverage can help cover certain costs if fire, wind or hail damage your business property. This can include damage caused by certain types of weather events, including:
- Tornados
- Windstorms
- Wildfires
Floods and volcanoes are not included in NEXT commercial property coverage. In 2021 alone, Indiana experienced 103 flash floods, floods or heavy rain events.1 If your business is located in a flood-prone area, you may want to consider insuring your property through the National Flood Insurance Program.2
Certain man-made disasters, such as rioting and vandalism, are included in NEXT commercial property insurance policies. An optional coverage add-on is available for acts of terrorism.
It’s important to read your policy documents closely to make sure you are getting the coverage you need. NEXT has a team of U.S.-based advisors available to assist you if you have any questions about your coverage.
Is Commercial Property insurance required in Indiana?
Indiana does not require businesses to have commercial property insurance or business hazard insurance, another term used to describe this coverage.
However, business owners may discover they need Indiana hazard insurance to rent or own commercial property.
Even when it’s not required, commercial property insurance can benefit your business in the following ways:
Cover property damage costs
With commercial property insurance, Indiana businesses can get help covering the costs to replace or repair damaged property when a covered incident occurs.
Survive business interruptions
If you need to close your business temporarily after a covered incident, business income insurance can help you remain financially stable by helping with lost income, moving and relocation costs and employee wages.
Secure a loan
Your lender or bank may require proof of commercial property insurance if you apply for a mortgage on a commercial property. Similarly, the Small Business Administration (SBA) requires businesses to have business hazard insurance on building used as collateral for their loans.
Lease agreement
Indiana landlords may ask you to carry commercial property insurance before they’ll agree to rent a commercial space to you. This requirement is often written into commercial leases.
What types of businesses might need Commercial Property insurance in Indiana?
Indiana businesses across a variety of industries can benefit from the financial protection offered by commercial property insurance and other business insurance coverages.
Businesses operating from a physical location, such as an office space or a brick-and-mortar store, can get help protecting certain assets with Indiana business property insurance.
Home-based businesses typically have very limited coverage through their homeowner’s insurance. Commercial property insurance can provide additional coverage when needed.
Business owners in some industries may consider commercial property insurance to be especially important due to the type of risks they’re exposed to. For example, retail businesses operating from brick-and-mortar stores often keep a significant amount of inventory on-site. Commercial property coverage can help cover related costs if inventory is damaged or stolen.
How much does Commercial Property insurance cost in Indiana?
The cost of commercial property insurance in Indiana varies based on a number of factors, including:
- The total value of your business property
- Your business property location
- The type of work you do
- Your work experience
- The number of people you employ
- Your history of past claims
- The policy limits you select
To find out how much coverage will cost for your business, start a free instant quote online.
Monthly premiums for NEXT commercial property insurance cost $45 or less for 56% of our U.S. customers.**
Learn more about commercial property insurance costs.
How NEXT helps Indiana businesses
NEXT provides Indiana commercial property insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
