The burst pipe
A pipe bursts over a weekend and ruins inventory and equipment.
Business personal property coverage can replace what was damaged.
Commercial Property & Casualty
Commercial property, valued correctly.
Commercial property insurance protects the physical things your business depends on, including buildings, equipment, inventory and improvements, and can replace lost income while you recover from a covered loss.
What commercial property covers.
The most painful property claims we see aren't missing policies. They're outdated values, coinsurance penalties and business income limits that run out before the business is back on its feet.
- BuildingsStructures you own, or are required by your lease to insure, including permanently installed fixtures.
- Business personal propertyEquipment, furniture, inventory, supplies and tenant improvements you paid for.
- Business income and extra expenseLost net income and continuing expenses, plus extra costs to keep operating, after a covered loss shuts you down.
- Property of othersCustomers' property in your care, custody or control, where the policy includes it.
- Optional coveragesEquipment breakdown, spoilage, outdoor signs, ordinance or law, and more, added to fit your operations.
What it typically doesn’t cover
- Flood and earthquakeTypically excluded and purchased separately where the exposure warrants it.
- Property in transit or at job sitesTools, equipment and goods away from your premises usually need inland marine coverage.
- Liability to othersInjury or damage you cause to others is covered by general liability. General Liability & Products Liability Insurance
- Wear and tear, and gradual damageMaintenance issues, deterioration and long-term leaks are generally excluded.
- Cyber eventsData loss and system outages from a cyber attack belong on a cyber policy. Cyber Liability Insurance
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The kitchen fire
A fire starts in your space overnight and you can't reopen for three months while repairs are made.
Property coverage can pay for repairs, and business income coverage can replace lost income and help pay ongoing expenses.
The break-in
Thieves break in overnight and take computers and tools.
Theft of business property can be covered, subject to the policy's terms.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Business Owner's Policy (BOP)Liability, property and business income coverage combined into one policy.General Liability & Products Liability InsuranceThird-party bodily injury, property damage and products-related claims.Umbrella & Excess Liability InsuranceAdditional liability limits above underlying commercial liability policies.Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Questions
Common questions about commercial property, answered.
What's the difference between replacement cost and actual cash value?
Replacement cost pays to repair or replace property with new materials of like kind and quality. Actual cash value subtracts depreciation, so older property pays out much less.
What is a coinsurance penalty?
Many property policies require you to insure a minimum percentage of your property's value, often 80% or 90%. If you're underinsured at the time of a loss, the claim payment can be reduced proportionally.
Does commercial property insurance cover flood?
Generally not. Flood is typically excluded and needs separate coverage. We can help you decide whether your locations warrant it.
What is business income coverage?
It replaces lost net income and continuing expenses, like payroll and rent, while your business is shut down by a covered property loss, subject to the policy's limit and waiting period.
How much does commercial property cost?
Property premiums are driven by what it would cost to rebuild and replace your property, the building's construction, age and occupancy, its location and exposure to weather, fire protection and security, and the deductibles you choose. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.