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What Does a Commercial Property Insurance Policy Cover?

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Whether you’re a small business owner or a large firm, you’re going to need a good commercial property insurance policy to protect your company’s buildings and other physical assets from theft, fire, burst pipes, explosions, storms, and vandalism. While damages by floods and earthquakes aren’t covered in such an insurance policy, they can be if you choose to add these perils to your insurance policy.

What does a commercial property insurance policy usually cover?

While the specifics of each policy may vary depending on the type of risk you want to insure your business against, typically, a commercial property insurance policy covers the following:

The buildings your company owns or leases – any damages sustained by the physical buildings and other structures owned or leased by your company are covered by a commercial property insurance policy.

All movable property owned by your business – this includes everything used by your business to operate efficiently, including computers, electronics, furniture, inventory, servers, storage systems, and more. Not only does a commercial property insurance policy cover the costs of repairing such assets and movable property, but it also covers the cost of replacing all such assets if the damage sustained is too much to be covered by just a repair.

Assets surrounding your company building – several structures surrounding your office building are crucial to the way you carry out your daily business operations. These include the company sign and logo, fences, landscaping, and other external structures.

Business interruption coverage – if your business has suffered a loss or damage, it is unlikely that business operations will continue uninterrupted. Any loss of income or revenue during such a period may be mitigated with business interruption coverage. This will help you pay your business bills, manage payroll, and cover your other expenses till you get back to regular business operations.

Some businesses may even choose to cover assets that may get stolen or lost during their off-premises usage by employees. If your insurance policy includes such coverage, you will be able to replace the device easily by submitting a claim.

Your policy must clearly mention whether you want to be insured against “all perils” or only the “named perils”, in which case, you must clearly mention every “named peril” that the policy will protect you against.

The cost of the commercial property insurance policy and the premium you will have to pay will depend on:

  • The location of your business and its surrounding environment
  • How old your property is and the materials used to construct it
  • The type of business being carried out in the commercial space
  • The condition of plumbing and electrical work
  • The preventative measures you’ve put in place

Request a quote with us for your commercial property insurance policy today!