Commercial Property Insurance Protecting the Property Your Business Depends On

Your business may depend on much more than the building where you work.

Furniture, computers, inventory, equipment, supplies, signage and other property can all represent a significant investment — and a major disruption if they’re damaged or destroyed.

What Is Commercial Property Insurance?

Commercial Property Insurance is designed to help businesses protect certain physical assets from covered causes of loss.

Depending on the policy and business, coverage may apply to:

- Buildings
- Business personal property
- Furniture
- Computers and electronics
- Inventory
- Supplies
- Machinery
- Certain equipment
- Improvements and betterments
- Outdoor signs
- Other eligible business property

Exactly what’s covered depends on the policy, limits, valuation method, exclusions and circumstances of the loss.

What Does Commercial Property Insurance Cover?

Your Building

If your business owns its building, coverage may apply to the structure and eligible fixtures.

Business Personal Property

Covers items like furniture, computers, inventory, equipment, supplies and more.

Inventory

Protects the goods and materials your business has on hand.

Improvements to Leased Space

May cover certain improvements and betterments made to a leased space.

Do I Need Commercial Property Insurance If I Rent My Building?

Yes, a business that rents its location may still need Commercial Property Insurance. Your landlord’s insurance generally protects the property owned by the landlord — not necessarily the property owned by your business.

Your business may still need coverage for things such as:

- Furniture
- Computers
- Inventory
- Equipment
- Supplies
- Tenant improvements
- Other business-owned property

Businesses should also review their lease because landlords may have specific insurance requirements.

What Can Damage Commercial Property?

Commercial property can be exposed to many different types of losses. Depending on the policy, covered causes of loss may include certain events involving:

- Fire
- Smoke
- Wind
- Hail
- Lightning
- Theft
- Vandalism
- Certain types of water damage
- Other covered causes of loss

Not every type of property damage is automatically covered. Coverage depends on the specific policy, endorsements, exclusions and circumstances surrounding the loss.

What Isn’t Typically Covered?

Commercial Property Insurance doesn’t cover every risk a business faces.
Separate coverage may be needed for exposures such as:

Flood Damage – May require a separate policy or coverage arrangement.

Earthquake or Earth Movement – May need to be specifically added or purchased separately.

Business Vehicles – Generally require Commercial Auto Insurance.

Employee Injuries – Generally addressed through Workers’ Compensation Insurance.

Third-Party Injury or Property Damage – May be addressed through General Liability Insurance.

Tools and Equipment That Travel – Better addressed through Inland Marine or Equipment coverage.

Cyber Incidents – Require different types of insurance protection.