What does commercial property insurance cover?

Commercial property insurance is very helpful for business owners as it helps them protect their property that is used for business operations. This type of insurance not just covers the buildings, offices, and stores, but also furniture, equipment, computers, inventory, important documents, fixtures, supplies, and other physical assets of the company. Commercial property insurance may also cover various losses, including business personal property, building, property of others, cargo, business income, and inland marine.

The premiums of commercial property insurance have increased to a greater extent due to the disastrous events in 2018 and 2017. As stated by a recent report, worldwide losses from catastrophic events in 2017 amounted to $144 billion with hurricanes Maria, Harvey, and Irma causing collective property damage of $92 billion. On the other hand, the California wildfires accounted for the losses of $14 billion. In 2018, the wildfires in California continued to establish new alarming standards in commercial property risks and accounted for extra insured losses of $845 million.

Your commercial property and belongings are subject to inevitable risks and losses, therefore, it is necessary to get commercial property insurance. Now, you must be thinking what does commercial property insurance cover? Here in this article, we will share complete information about the commercial property coverage to help you buy the right insurance policy according to your business needs. Let’s have a look.

Commercial property coverage depends on the insurance policy. Like when you get a commercial insurance policy from your broker or carrier, then you must tailor it for protection against the risks that are more dominant in your geographical area. A New York-based corporation would not require the same insurance coverage as a corporation headquartered in Michigan. So, you must work with your carrier or broker to evaluate risk and set up a policy that suits your business.

Commercial property insurance not just covers the building but also many other things. Your commercial insurance policy must also insure your building contents, including any portable property that is owned by your business. For example, commercial auto insurance covers fleets, motor carriers, commercial auto – non-fleet, garage operations, and new car dealerships. Whereas commercial retail insurance covers product inventory, accessories, furniture, and equipment.  

Depending upon the need of your business, commercial property insurance may cover the assets that are outside your building, including company sign, fences, external structures, or landscaping. All these assets are necessary for the optimum working of your business. This is why these assets must also be covered in commercial property insurance.

Your commercial insurance coverage may also include critical business assets that are utilized off-premises. For instance, say a worker takes a company’s laptop on an official trip and it gets stolen or lost. Based on your insurance coverage, you may submit a claim for replacing the laptop. The most vital aspect of this policy is protection against the loss of revenue or income due to property loss.  

Here at InsurePlus+, we offer several commercial insurance types, including Automobile, Medical & Health Sciences, Business, Commercial & Institutional, Small & Owner Managed Business, and Specialized Coverage.