Commercial property insurance is a type of coverage that protects against the financial loss from physical damage to or destruction of commercial buildings and their contents.
It also covers business interruption caused by such events as fire, theft, vandalism, and natural disasters.
Insurance for commercial properties can be used to cover any commercial building you might have, including office buildings, warehouses, retail stores, or restaurants.
This type of insurance is designed for commercial use, so this kind of insurance coverage will be different from the type of homeowner’s insurance you might have.
Who Is Commercial Property Insurance Designed For?
This type of insurance is for business property owners and renters who want to protect themselves from the risk of liability.
Various policy features are available to meet your business needs, with various policy features available such as broad form or named peril coverages that will include accidental damage like theft, vandalism, or fire.
How Commercial Property Insurance Works
The insurance generally covers any physical damage to your building or contents while they are in your possession, custody, and control. It can also protect against loss due to burglary, vandalism, or fire for a large variety of buildings.
Theft, vandalism, and fire are some of the risks covered by property insurance. There are different types of coverage for commercial buildings than for homes – because they have a higher risk level due to their usage.
Different Types of Insurance Coverage Available
Commercial insurance is a type of coverage that you’ll need if homeowner’s insurance doesn’t cover your commercial building or contents. It usually includes protection for theft, vandalism, and fire risks.
Commercial insurance includes a variety of coverage that you can choose from.
Type One: The most common type is the all-risk, covering theft, vandalism, and fire. It also includes protection for your building and its contents (items inside).
Type Two: A broad form policy offers more protection than standard property insurance, but it’s also more expensive and could exclude some risks like flood or earthquake damage.
The last two options on our list are an alternative to covering just buildings: “personal effects” coverage will cover any items in your office such as computers. In contrast, “business income” coverage provides financial support if your business has been disrupted by damage to the premises due to anything other than theft or natural disasters.
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