Commercial Property Insurance
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What is commercial property insurance?

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Commercial property insurance

Commercial property insurance pays to repair or replace stolen, lost, or damaged business property. It covers your business’s physical location and other assets like equipment.

Does your small business need commercial property insurance?

If you own or rent an office or workspace, most likely yes.

Landlords often require proof of commercial property coverage from their business tenants. And lenders typically mandate commercial property insurance for the life of the mortgage. 

Though landlords carry property insurance for their buildings, they won’t take responsibility for any expensive business property a tenant keeps in the space.

Even when it’s not required, commercial property insurance is important for any small business that owns property. This coverage insures expensive equipment as well as inventory.

How does commercial property insurance protect your business?

Commercial property insurance covers your business’s real estate and its contents. It helps pay for repair or replacement when business property is lost, damaged, or destroyed.

Your business assets aren’t just expensive – they keep your business running. With commercial property insurance, you’ll be able to afford repairs for necessary equipment after an unexpected event like a fire or a break-in.

Learn more about what commercial property insurance covers.

Business owner filling out paperwork after damage to his building.

Businesses that purchase a policy typically:

  • Own or rent a building, store, or office
  • Own or rent expensive equipment or tools
  • Have products or inventory
  • Depend on other valuable business assets

What kinds of commercial property insurance do I need?

Depending on your risks and type of property, you may need to expand your property coverage with endorsements or additional policies.

A standard policy covers specific risks in a fixed location

Commercial property insurance covers property damage caused by named perils. That includes burglaries, vandalism, fires, and storms. But it doesn't cover normal wear and tear or natural disasters.

Typically, this policy covers your building and business personal property kept at that location. If you don’t own or rent a building or other commercial space, the policy can cover assets stored at a designated location. These are usually places like your home or a storage unit.

Customize your property insurance policy for added protection

If you bring equipment to job sites or work in an area prone to flooding, you might want extra protection. You can modify your commercial property policy to protect against additional risks, including:

Natural disasters. If your business needs protection from floods, earthquakes, tornadoes, or hurricanes, work with your insurance agent to add riders for natural disasters.

Forced closure. Property damage often forces businesses to temporarily close their doors. A business interruption policy can help you stay on top of your bills by replacing lost business income if you’re forced to shut down due to property damage.

Damage to mobile property. If your business needs coverage for transported items, consider inland marine insurance. This policy covers equipment, tools, and other possessions that move from place to place. It also includes items in a business’s temporary care, such as loaned artwork.

Protect your business vehicle with commercial auto insurance

Commercial property insurance doesn’t cover business vehicles. If your business owns a company vehicle, you’ll typically need to purchase commercial auto insurance to comply with state law.

If you visit clients or make deliveries in a personal vehicle, you may opt for hired and non-owned auto insurance (HNOA) instead. This policy covers leased and rented vehicles, along with personal vehicles owned by you or your employees.

How much does commercial property insurance cost?

Woman calculating costs of insurance.

Your cost is based on a few factors, including:

  • Industry and risks
  • Coverage limits
  • Location
  • Property value
View Property Insurance Costs

What is a business owner’s policy?

A business owner’s policy (BOP) bundles commercial property coverage and general liability insurance at a discount.

This policy includes property protection for your business assets and covers the most common lawsuits brought by people outside your company.

A BOP provides excellent savings on the commercial insurance policies that most businesses need. But only some small businesses can purchase a BOP. To be eligible, businesses usually must have:

  • Low industry risk
  • Fewer than 100 employees
  • Less than $1 million in annual revenue
  • A small commercial space

Check with an Insureon agent to find out if your business qualifies.

What’s the difference between property and liability insurance?

Business property insurance covers your physical assets, and liability insurance provides financial assistance when your business faces a lawsuit. Since they provide coverage in different situations, many businesses carry both.

Liability policies can help pay for different kinds of lawsuits. They include:

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