What is Commercial Property Insurance?

Running a business means keeping an eye on the things that keep you up and running — your building, your equipment, your tools, and the inventory you depend on every day. Any damage to those assets can bring your operations to a halt fast.

Commercial Property Insurance is what steps in when the unexpected happens. Fire, vandalism, storms, and other covered losses can be costly and disruptive, but this coverage helps protect the physical side of your business so a sudden setback doesn’t turn into a long-term problem.

At the end of the day, Commercial Property Insurance helps you stay focused on running your business instead of worrying about what might go wrong. It’s a straightforward way to protect the assets you’ve invested in and keep your operation moving, even when the unexpected shows up.

What Coverages Are Included in Commercial Property Insurance

Now that you know what Commercial Property Insurance is and why it matters, here’s a closer look at the main pieces that make up a typical policy. These elements work together to help protect your business and its physical assets.

The Main Documents

• Declarations Form – The summary of your policy, including limits and insured locations.
• Conditions Form – Rules for how the policy works and what’s expected of you.
• Coverage Forms – Define which types of property and losses are included.
• Causes of Loss Form – Lists the perils your policy protects against, like fire, storms, or vandalism.
• Endorsements – Optional additions that tailor the policy to your unique business needs.

Of all the documents in a Commercial Property policy, the coverage forms are where the real protection happens. They spell out exactly what your policy covers, and one of the most important of these is the Building and Personal Property Coverage Form — the part that safeguards the physical assets that keep your business running every day.

Building and Personal Property Coverage Form

This is often the heart of a Commercial Property policy. It’s the coverage that protects the physical assets that keep your business running smoothly. Here’s what it usually includes:

• Buildings – The structures you own or lease, including completed additions, outdoor fixtures, and permanently installed machinery.
• Business Personal Property – Furniture, fixtures, machinery, and other equipment your business relies on every day.
• Personal Property of Others – Property belonging to clients or others while it’s in your care, custody, or control. Coverage applies to items inside the building, outside on your premises, or even in a vehicle within 100 feet of your business.

What’s Not Covered

No policy covers everything, so it’s important to know the typical exclusions:

• Money and securities
• Vehicles licensed for public road use
• Fences, signs not attached to buildings, and trees
• Bridges, patios, and paved surfaces
• Land, water, and growing crops

Why It Matters

This form ensures that your business assets are protected from fire, storms, vandalism, and other covered losses. Having this coverage in place helps you focus on running your business, knowing the things that make it work are protected.

Now you understand what property your policy covers, the next step is understanding the events or “perils” that could cause a loss. The Causes of Loss Form spells out exactly what your policy protects against, so you know when your assets are protected.

What Your Property Is Protected From

Your Commercial Property policy includes a Causes of Loss Form, which spells out the specific perils (AKA risks) your business is insured against. There are three main types:

1. Basic Form – Covers the essentials, like fire, lightning, and vandalism.
2. Broad Form – Adds protection for additional risks, including water damage, falling objects, and ice or snow damage.
3. Special Form – Provides “open-peril” coverage, protecting against all risks unless they are specifically excluded.

For businesses concerned about earthquakes or volcanic eruptions, optional endorsements are available to extend coverage for these rare but potentially costly events.

FAQs About Commercial Property Insurance

Q: What does commercial property insurance cover?
A: It covers buildings, equipment, inventory, and other physical assets against risks like fire, theft, and vandalism.

Q: Does commercial property insurance cover natural disasters?
A: Standard policies cover perils like fire and windstorms but may exclude earthquakes and floods. Additional endorsements can be added for these risks.

Q: What is business income coverage?
A: Business income coverage helps replace lost income if your business is forced to close due to a covered loss.

Q: What is builders risk insurance?
A: Builders risk insurance protects buildings under construction, including materials and supplies.

Q: Can I customize my commercial property insurance policy?
A: Yes! We offer a wide range of endorsements and coverage options to tailor the policy to your business needs.

Get a Quote Today!

Contact us to get a personalized quote for Commercial Property Insurance and discover how we can help you safeguard your future.