Business Property Insurance: Definition, Coverage, & Costs of Commercial Property Insurance Policies

There are plenty of risks you’ll need to watch out for as a small business owner. To make sure you safeguard your company you will want to look into good business insurance coverage. Of course, the specific types of insurance you need will depend on what your business does, where you operate, your industry, and more. If you have physical business assets, however, you’ll certainly want to consider investing in commercial property insurance to protect those assets from damage, theft, and loss.

What Is Sacramento Commercial Property Insurance?

Business property insurance also known as commercial property insurance is business insurance designed to protect your company’s physical assets, and the property that belongs to the company. Commercial property insurance will protect your business from fire, smoke, vandalism, theft, severe weather and more. Business property that’s typically covered under this type of insurance includes:

• Buildings, stores, and offices
• Furniture and equipment (including computers)
• Tools
• Inventory
• Important business documents
• Exterior signs, fences, and landscaping

How Sacramento Commercial Property Insurance Works

The purpose of commercial property insurance is to help to pay for repairs or to replace your business property if it is damaged or destroyed. In addition to paying for the repair or restoration of your damaged, lost, or stolen property, it will also help your business resume normal operations as quickly as possible.

You can choose to purchase commercial property insurance as a stand alone policy or you can buy it as a package in a business owners policy or BOP. A BOP has general liability insurance, commercial property insurance and business interruption insurance included in one easy to use policy. 

Who Needs Commercial Property Insurance?

The majority of small business owners will benefit from carrying commercial property insurance. In addition, if any of the following applies to your business, you’ll more than likely want to invest in this type of insurance:

• You own or lease office space
• You lease or rent equipment
• You manufacture a product
• You maintain inventory
• You own physical business assets of some value

What Does Commercial Property Insurance Cover?

Overall, most commercial property insurance policies cover the following losses:

• Theft of business property (but employee theft is usually not covered)
• Accidental damage to business property from external incidents, such as fire
• Some natural disasters, particularly fire and storms
• Disrupted computer operations and data hacks
• Personal items left on business premises (most policies offer limited personal effects coverage)

What’s Not Covered by Commercial Property Insurance?

These are some areas which standard commercial property insurance doesn’t typically cover:

• Flood and earthquake damage
• Theft by employees or business partners
• Damage or loss of commercial vehicles: If you have company vehicles, you should purchase a separate commercial auto insurance policy.
• Theft of cash and currency: Separate crime insurance is available in these instances of theft.
• Movable property: The standard commercial property policy covers stationary property that’s inside your business or within 100 to 1,000 feet of your business. If you regularly ship property, then you should consider adding inland marine coverage.
• Environmental damage: Such as pollution liability, oil spills, etc.
• Equipment breakdown: Commercial property insurance covers damages to your equipment from external causes, such as a fire. However, equipment damage due to a power surge, operator error, or other internal forces requires separate equipment breakdown insurance.
• Loss of income: Commercial property insurance pays for the repair or restoration of your damaged property. Typically, however, if your property damage results in a loss of revenue for a period of time, you’ll need business interruption insurance to cover lost income.
• Product defects: Manufacturing, defects, design defects, and marketing defects in business property fall under the umbrella of product liability insurance.

How Much Does Commercial Property Insurance Cost?

Commercial property insurance rates will vary from provider to provider and state to state. If you would like a custom commercial property insurance please call us today at 916 313 6100