What is Commercial Property insurance?
Commercial property insurance helps with replacement or repair costs if property is stolen or damaged due to a covered event.
There are four basic types of coverage included with commercial property insurance:
- Goods, gear and inventory: Commercial property insurance protects your business personal property, including furniture, equipment and inventory.
- Buildings: If you own the building, property insurance can help pay for repairs to the building itself.
- Business interruption coverage: Sometimes called business income insurance, this coverage can help protect you against the loss of business income and related expenses if you have to temporarily close due to fire, water damage or another event covered by your policy.
- Equipment breakdowns: This coverage adds extra protection if a power surge or mechanical failure damages your business equipment.
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 significant financial loss.
Who needs Commercial Property insurance?
If you rely on your equipment, inventory, furniture or a physical location to do business, you’re probably a good candidate for commercial property insurance.
It can provide financial help if you:
- Run your business out of a physical location, such as a leased or owned office, store, garage or home.
- Own or lease equipment.
- Have inventory that could get stolen or damaged.
- Must temporarily close if your business property is damaged.
For instance, these types of businesses commonly purchase NEXT’s commercial property coverage:
How much does Commercial Property insurance cost?
At NEXT, commercial property insurance can cost as little as $14 a month for some low-risk businesses.†
The total value of your property and business operations are factors that determine the exact price you’ll pay.
Learn more about commercial property insurance costs.
What is a Business Owner’s Policy (BOP)?
A business owner’s policy (BOP) combines two types of business insurance coverage: general liability and commercial property insurance.
In addition to covering the same risks as commercial property insurance, a BOP can also cover customer injuries and damage to someone else’s property. This policy also helps cover advertising injury, which can include claims related to copying someone’s advertising idea or copyright in your advertising, libel and slander.
Another benefit of business owner’s coverage is that it may save you money. Bundling two forms of insurance into a single package is often less expensive than buying two policies individually.
Who needs a Business Owner’s Policy?
Because a BOP includes two types of insurance, offers more coverage and often has the advantage of a lower price due to bundling, it’s a convenient coverage option for many business owners.
Regardless of what kind of business you have, you most likely could benefit from a BOP.
Here are a few scenarios where a BOP could be helpful:
- A customer trips over uneven flooring in your bakery and gets hurt. A liability insurance policy can help cover medical expenses and legal costs if taken to court.
- A rival cleaning business says your employee posted something damaging and untrue online and sues you. Commercial general liability insurance could help pay for defense costs.
- High-value equipment is stolen from your business property. Commercial property insurance could help cover some replacement costs.
- A fire causes significant damage to a clothing boutique. Commercial property coverage may help pay for costs to fix the damages and lost income while the store is closed for repairs.
How a BOP can save you money
NEXT customers automatically save up to 10% when choosing a BOP rather than purchasing general liability and commercial property insurance separately.*
How do Commercial Property insurance and BOP insurance work together?
Commercial property insurance helps many companies safeguard against unexpected costs related to inventory, equipment, furniture and building structure. Whether you decide on a BOP or a stand-alone commercial property policy, you have that coverage.
While both commercial property coverage and a BOP can help cover expenses related to unforeseen accidents, a BOP offers more protection due to its general liability coverage.
Both BOP and commercial property insurance have similar restrictions, such as:
- They only cover accidental damage, not intentional damage. You won’t be covered if you attack someone or knowingly cause harm.
- Coverage is restricted to a specific area. If you go outside your coverage territory, you won’t have the same protections.
- Flood damage isn’t covered. BOP and commercial property do not cover water or flood damage caused by heavy rains, hurricanes or tornadoes.
- Tools and equipment coverage must be added. When gear is not kept or used at your physical business property, you’d need tools & equipment insurance to protect it. (This is an add-on policy.)
Do you need both a Business Owner’s Policy and Commercial Property insurance?
No. You won’t need both since a BOP includes both commercial property insurance and general liability insurance protection.
How NEXT helps protect small businesses
NEXT’s small business insurance options are convenient and affordable.
We have customized insurance tailored to your business. If you’re not sure whether commercial property insurance or a BOP are right for you, we’re here to help.
Start an instant quote, answer a few questions and choose your coverage. You can do everything 100% online in about 10 minutes and get an immediate certificate of insurance.
Start a free quote with NEXT today.
