Commercial Property Insurance

Businesses that own property have a lot invested in their land and buildings, and those assets should be protected. Commercial property insurance offers protection against a variety of perils for property that businesses own. Most commercial property policies have business personal property coverage that may insure furniture, electronics, moveable equipment, and other items.

Any business that owns a building or land can likely benefit from the protections that a commercial property policy affords. Businesses that have outstanding loans against their property may be required by the terms of their loan to purchase coverage. Businesses that own property outright might not be required to purchase coverage, but it’s still often wise to have a policy in place -- just in case something happens.

Businesses that lease space typically don’t need commercial property coverage. Although they still may need coverage for supplies, inventory, and equipment, coverage for a building usually isn’t necessary since they don’t own the building they’re in. Coverage for supplies, inventory, and equipment can often be obtained through another type of insurance that doesn’t include any building coverage -- and, as a result, usually costs less.

The exact perils that business property insurance guards against can vary, as they depend on a policy’s specific terms, conditions and exclusions. Some common perils that many policies offer coverage for include wind, hail, burglary, vandalism, and fire. Some policies may also offer coverage for freezing pipes and sewer system backups.