Commercial Property Insurance protects the stuff your business needs to run. It can pay to repair or replace your business property if it's stolen, damaged, or destroyed in a fire or natural disaster. Most policies can cover…
- Office space owned by your business.
Without Commercial Property Insurance, most small businesses and startups can't replace their equipment after a covered event. Just look at the study from insurance company The Hartford. It lists the average cost of common small business property claims:
- Fire: $35,000.
- Wind and hail damage: $26,000.
- Water and freezing pipe damage: $17,000.
- Burglary and theft: $8,000.
Getting business property insurance doesn't mean your equipment will always be safe and sound. But it can help your business stay open when that property is damaged.
What Is Commercial Property Insurance?
When certain events happen, Commercial Property Insurance can pay for business property that is stolen, damaged, or destroyed. That property typically includes…
- Your building. This usually means the structure, but it can include permanently installed fixtures, machinery, and equipment.
- Contents of your building. This includes items that can be easily taken out, like inventory, office equipment, and other supplies.
- Other people's property. This category includes items that are left in your care, custody, or control. For example, a customer might use an outlet on your premises to charge her laptop. Once it's in your care, you could be responsible if it's damaged.
Like most policies, business Property Insurance has inclusions and exclusions. For example, most Property Insurance pays when your stuff is damaged by common problems like fire, theft, or windstorms. But some things that cause property damage are often excluded. Two big ones are floods and earthquakes.
Read your policy carefully. Ask your agent if you're concerned that a specific kind of risk may not be covered. They can often help you find ways to increase your coverage.