What Is Commercial Property Insurance?

Businesses rely on a wide range of physical assets—including buildings, furniture, technology, inventory and raw materials, among others—to conduct their operations successfully. The loss, damage or destruction of this property could wreak havoc on any business. That’s why it’s important to have adequate commercial property insurance in place.

Commercial property insurance is designed to cover this a business’s physical assets if these items are damaged or destroyed as the result of various covered events. Generally speaking, there are two different types of commercial property policies. This includes: a glass of wine sitting on top of a wooden table

a glass of wine sitting on top of a wooden table

1. All-risk policies—These policies can cover losses that result from a variety of events—such as fires, wind, hail, lightning, theft and vandalism. Yet, keep in mind that standard coverage typically excludes certain weather events, including floods and earthquakes.

2. Peril-specific policies—These policies can cover damages that occur as the result of specific, policy-named perils. For instance, a business may require fire coverage if its property faces an increased risk of experiencing that peril.

Commercial property insurance covers a variety of physical assets. However, you may need to purchase policy endorsements (also known as riders) for certain high-value items—including specialized equipment and custom fixtures.

Call your insurance agent for a customized assessment of your business’s unique coverage needs. You can then purchase a commercial property insurance policy with confidence, knowing that your commercial assets will be fully protected.

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