Commercial Property Insurance Explained
What Is Commercial Property Insurance?
It is a type of insurance that helps protect your company’s property and can also provide coverage for loss of income because of a covered loss, such as wind and hail, fires, theft and vandalism.
What Can Commercial Property Insurance Cover?
- Physical Structures – Office, retail, warehouse, or any business property
- Business Contents – Computers, furniture, equipment, tools, inventory and more
- Loss of Income – Covers lost revenue if you have to pause operations
- Exterior signage & fencing
Why Do You Need Commercial Property Insurance?
Whether you own your building, lease office space, or run your business from a storefront or warehouse, your business property is at risk from:
- Fire & storm damage
- Theft or vandalism
- Equipment breakdown
- Water damage (not flood related)
- Business interruption and extra expenses
Without the right coverage, a single disaster could financially destroy your business. If you have a mortgage or a business loan, your lending institution will require insurance.
How is the Cost of Commercial Property Insurance Calculated?
Several factors go into determining the cost and availability for commercial property insurance. Along with the property’s value, age, location and updates to the building are key factors. Others include security systems, sprinklers a fire suppression systems deductible. For example, most companies state you must have a central station burglar alarm to obtain theft coverage.