Commercial property insurance
Protect the place where
the business becomes real
The building matters, but so do the improvements, equipment, inventory, and income inside it. Property coverage should be built around the full cost of getting the doors open again.
What it protects
The property behind the operation
Commercial property insurance reaches beyond the building shell. It can protect the improvements, equipment, stock, and income the business needs to recover after covered damage.
- 01
Buildings
Covers scheduled business buildings and attached structures using the limits, deductibles, and valuation shown on the policy.
- 02
Tenant improvements
Can cover build-outs, fixtures, finishes, and improvements a tenant paid for inside a leased space.
- 03
Equipment and furniture
Protects insured machinery, computers, furniture, tools, and other property used to operate the business.
- 04
Inventory and stock
Can cover goods held for sale, raw materials, work in process, and finished inventory at insured locations.
- 05
Business income
Can replace covered income and continuing expenses while operations recover from insured property damage.
- 06
Extra expense
Can help with reasonable added costs to operate temporarily, relocate, or shorten a covered interruption.
Where policies differ
The limit is only one part of the claim
A building can carry a large limit and still be underprotected because of valuation, deductibles, coinsurance, code upgrades, mobile property, or an unrealistic recovery period.
Six details that determine how completely the business can reopen.
- 01
Replacement cost or cash value
The valuation method determines whether depreciation is subtracted when damaged buildings, equipment, or contents are repaired or replaced.
- 02
Wind and hail deductible
A percentage deductible can create a much larger out-of-pocket cost than a flat deductible on a high-value building.
- 03
Coinsurance and reported values
Understated property values can reduce a claim payment when the policy requires a percentage of the full replacement value.
- 04
Ordinance or law
Current building codes can require upgrades to undamaged portions or demolition work beyond replacing what the loss directly damaged.
- 05
Property away from the premises
Tools, inventory, customer property, and mobile equipment may need inland marine coverage once they leave the scheduled address.
- 06
The recovery timeline
Business-income limits should reflect revenue, continuing expenses, seasonality, and how long permits, equipment, or construction could delay reopening.
Common commercial property questions
What does commercial property insurance cover?
Commercial property insurance can cover scheduled buildings, tenant improvements, furniture, equipment, inventory, and other business property against covered causes of loss. Business income and extra expense may also be included or added. The policy’s causes of loss, valuation, limits, deductibles, and exclusions determine the result.
How should a commercial building be valued for insurance?
The building limit should reflect the cost to reconstruct the insured building, including materials, labor, contractor expense, and relevant features, rather than its sale price or tax value. Coinsurance, inflation, code requirements, and debris removal also matter. We review the basis instead of simply renewing last year’s number.
Does commercial property insurance cover lost income?
Business income coverage can replace covered income and continuing expenses when insured damage interrupts operations. Extra expense can help the company continue elsewhere or reopen sooner. The waiting period, limit, restoration period, cause of loss, and the business’s actual financial records all affect the claim.
Are wind and hail deductibles different on commercial property?
They can be. A commercial property policy may use a flat deductible or a percentage tied to the insured value at the affected location. On a large building, a small-looking percentage can become a substantial dollar amount. We convert every percentage into dollars before comparing quotes.
Insure more than the building shell.
We will review the building, improvements, equipment, inventory, values, deductibles, and recovery timeline, then compare coverage built for reopening.