Commercial Property Insurance Definition

Commercial property insurance also known as business property insurance is designed to protect your company’s assets from perils such as explosions, fire and smoke, burst pipes, theft and vandalism, and storms. A standard commercial property insurance policy will not cover your for perils such as earthquakes and flooding. Although you can add them to your policy by purchasing additional coverage.

Commercial property insurance will protect the structure your business is in, the assets within the building and outdoor property as well.

What Is commercial property insurance?

Commercial property insurance is business property insurance that is in place to safeguard your company assets. It’s a very useful form of commercial coverage whether you own, lease or rent the building your company is in.

An easy way to get commercial property insurance is to purchase a Business Owners Policy (BOP). A BOP will have three different forms of business insurance in one policy. BOPs have commercial property insurance, business interruption insurance and general liability insurance wrapped into one convenient package.

How much does commercial property insurance cost?

Commercial property insurance rates will vary from industry to industry, insurance provider to insurance provider, and zip code to zip code. It’s the type of business insurance coverage that is customized for an individual business. All businesses are unique and have unique risks. Some businesses may take on greater risk than others. This can affect the rate you pay on commercial property insurance.

Some of the other factors that may effect the rate you pay for commercial property insurance are as follows:

Location:

Areas or zip codes with a high claims history usually comes with higher rates on commercial property insurance coverage. If the crime level is high there may be a greater chance of your building being broke into. This can lead to higher rates as well. If you’re located in an area prone to natural disasters, this can cause you to see a hike in commercial property insurance rates too.

Construction:

The materials used to build the structure your company is can effect the rate. If they are more expensive than the business across the street, you can expect a higher rate. If your business is built with fireproof materials it may help lower the rate. If you’re in a new building you may see a lower rate than a company that’s inside an older building.

Occupancy:

The industry you’re in will play a major role in determining the rate you pay on commercial property insurance. Some industries will come with added risks and some industries are a lot less risky to insure. For example a restaurant will more than likely pay higher rates than an attorney’s office.

Fire and theft protection:

Is there a near by fire hydrant or fire station? Details like this may help to get you a lower rate on your commercial property insurance policy. Have you installed a fire sprinkler system, burglar alarms or security cameras? Things such as these can also help you to get a reduced rate on your commercial property insurance coverage.

What does commercial property insurance cover?

A standard commercial property insurance policy will cover the structure your company is in, the business assets inside the building and business property outside of the structure. Some of these items may be:

• Computers
• Furniture and equipment
• Exterior signs
• Fence and landscaping
• Important documents
• Inventory
• Others’ property

Commercial Property Insurance Quote

If you would like a custom commercial property insurance quote, please feel free to get in contact with us today at 916 313 6100