What does commercial property insurance cover?
Business property insurance can pay for repair or replacement of stolen, damaged, or destroyed business property.
Commercial property insurance provides coverage for:
Business-owned buildings
Commercial property insurance protects a building owned by your business against fire, vandalism, and other types of damage.
Example: A fire starts in an adjacent building and spreads to your IT consulting office. Property insurance helps pay for the office's renovation after the fire.
Furniture and fixtures
The furniture and fixtures inside your owned or rented building are protected by commercial property insurance.
Example: Someone breaks into your restaurant and vandalizes the dining area, breaking chairs and causing widespread damage. Your commercial property insurance helps pay to repair broken items and replace destroyed furniture.
Supplies and equipment
If your business’s supplies or equipment are damaged, lost, or stolen, commercial property insurance coverage can help repair or replace the items.
Example: A thief breaks into your computer repair business and steals thousands of dollars in computers and electronics. Property insurance pays for replacement of the stolen items.
Inventory
Commercial property insurance protects the inventory of retailers and other stores.
Example: A pipe bursts in a grocery store and a large portion of the store’s inventory is ruined. Commercial property insurance pays for the replacement of destroyed inventory.
Property insurance does not cover:
Inland marine insurance
Inland marine insurance protects business property in transit or equipment that moves to different worksites. It often covers your business property no matter where you take it.
Example: A lawn care company brings its landscaping tools and equipment to its clients' homes and offices. Because the items are in transit, they're exposed to more risk, necessitating inland marine coverage instead of standard property insurance.
Damaged customer property
General liability insurance is the policy that covers property belonging to your customers and clients.
Example: A door installation company accidentally breaks a customer's window when carrying a door through a home. General liability insurance helps pay to replace the window. It could also cover legal costs if the customer sued over the damage.
Business interruption insurance
Business interruption insurance can cover costs when a disaster forces a business to close temporarily. It can pay for lost revenue, day-to-day expenses, and the cost of moving to a temporary location.
Example: A fire at a tax preparation company causes the business to close for a week. Property insurance covers the cost of renovation, while business interruption insurance helps cover normal operating expenses during the closure.
Employee theft
Janitorial bonds reimburse your clients if an employee steals items or money from them. They are a type of fidelity bond, which protects your business and its clients against dishonest employees.
Example: An employee at your house cleaning business steals jewelry from a client's home. The cleaning company has a janitorial bond, so its insurance company reimburses the client when the theft is discovered.