Commercial Property Insurance for Business Assets

Business Insurance for Commercial Property

Commercial Property Insurance safeguards the physical assets that keep your business running. This coverage protects your building if you own it, plus all the contents inside—from computers and machinery to inventory and furniture. When unexpected events damage or destroy your property, this insurance provides the financial resources to repair, replace, and get back to business.

Why Your Business Needs This

• Fire damages your building and destroys thousands in inventory and equipment
• Theft or burglary results in stolen computers, tools, or merchandise
• Severe weather like windstorms or hail causes structural damage
• Vandalism forces you to repair or replace damaged property
• Water damage from burst pipes destroys inventory and equipment

What It Covers

Commercial Property Insurance covers your building's structure if you own the property, including walls, roof, and permanent fixtures. It protects business personal property like furniture, equipment, computers, and machinery. Your inventory and stock are covered whether finished goods or raw materials. The policy includes improvements you've made to a leased space. Coverage extends to outdoor property like signs and fencing. Most policies cover fire, lightning, explosion, windstorm, hail, theft, and vandalism as standard perils.

Replacement Cost Vs Actual Cash Value

You'll choose between two valuation methods when setting up your policy. Replacement Cost coverage pays to replace damaged property with new items of similar quality, without deducting for depreciation. Actual Cash Value pays the depreciated value of your property at the time of loss. While Replacement Cost costs more upfront, it provides significantly better protection when you need to rebuild or replace damaged assets. Consider how much it would truly cost to replace your equipment and inventory at today's prices.

What's Typically Excluded?

Standard Commercial Property policies don't cover flood damage—you'll need separate Flood Insurance. Earthquake damage requires an additional endorsement or separate policy. Normal wear and tear isn't covered. The policy won't pay for mechanical breakdown unless you add Equipment Breakdown coverage. Your vehicles need Commercial Auto Insurance. Certain high-value items like fine art or jewelry may have coverage limits and require scheduled coverage for full protection.

Do You Need This If You Lease Your Space?

Absolutely. Even if you don't own your building, you need Commercial Property Insurance for your business contents. Your landlord's insurance only covers the building structure—it won't replace your equipment, inventory, or furnishings if disaster strikes. You're also responsible for any improvements you've made to the leased space, like custom build-outs or installed fixtures. Review your lease agreement to understand exactly what you're responsible for insuring.