Commercial Property Insurance

Commercial property insurance is one of the most common types of small business insurance people buy because of the wide range of coverage it provides — and because so many entrepreneurs need some sort of equipment to run a business.

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

Goods, gear and inventory: Also known as business personal property insurance, all of your business property items, including furniture, equipment and inventory, are protected by commercial property insurance.

Buildings: If you own the building, property insurance can help pay for repairs to the building itself.

Business income interruptions: Also known as business interruption insurance or business income insurance, this is included with commercial property insurance and is designed to 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 an extra layer of protection if your business equipment is damaged from a power surge or mechanical failure.

Commercial property insurance cost can be as little as $17 monthly or $205 annually, but the exact price you’ll pay depends on your individual situation and setup. Some of the factors that play into your business property insurance estimate include:

• The type of work you do
• How many employees you have
• The state where you work
• Your claims history
• How high you set your limits
• Your work experience

Before you begin a quote for commercial property it can be helpful to have a good idea of how much your business property is worth. Knowing the value of your inventory and equipment will help us figure out what the replacement costs would be — and how much coverage you need (so you don’t overspend on insurance).

Small business owners who have commercial property insurance can almost always benefit from general liability coverage as well. In fact, they are so often bought together that we have created a package that combines these two policies.

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

BOP insurance has several benefits:

• You save money by bundling two policies into one
• You get coverage that’s tailored for small businesses like yours
• You can easily manage your coverage, add additional insureds and share certificates online 24/7

Commercial property covers your goods, gear, inventory and structures that you own. A business owner’s policy (BOP) covers all of these items as well as general liability risks, such as damage to other people’s property, injuries to customers or vendors and legal fees.

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

In the insurance industry, these items are often referred to as “business personal property.”

Let’s say you rent a space for your boutique or restaurant. If you were to turn the building upside down and shake it, almost everything that falls out would be covered by commercial property insurance (up to your policy limit, some exclusions apply).

This coverage also protects any improvements or upgrades you make to your workspace. Don’t worry, that custom shelving unit you built from scratch with reclaimed wood will be protected.

Learn more about Business Personal Property insurance

Business property insurance can help pay for repairs, construction and related expenses if you own the building where you do business.

For example, let’s say you have a coffee shop and own the commercial space where it’s located. If a tree falls and crashes through the building’s roof, you would have help paying for the repair.

It’s important to note that you would also need goods, gear and inventory coverage to replace anything that gets damaged inside the building.

With business income interruption coverage, you’ll have financial help if you are forced to close for a reason that is covered by your property insurance. It’s important to read your policy closely to know exactly what type of events are covered (and not covered).

For example, if a neighboring business catches on fire and damages your business location, you might be forced to close for several weeks to make repairs.

The business income coverage in your property insurance could help cover the revenue you would have earned during that time and ongoing business expenses while you are closed.

Equipment breakdown coverage protects you when there’s damage to a piece of business equipment that causes it to malfunction. It’s designed to cover many types of mechanical failures, such as short circuits, power surges and loss of air pressure.

For example, if a power surge damages your work computer beyond repair, this coverage could help you pay for a replacement.

You’ll need to purchase our “Pro” or “Pro+” coverage to add this to your business property insurance.

Commercial property insurance offers protection to any small business owner who relies on equipment, inventory or furniture in order to do business. Property insurance also helps cover any damages to either the building itself (if you own it), as well as any improvements or upgrades you make to your physical space.

You need commercial property coverage 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 got destroyed or broken