Commercial Property Insurance

Finding the Best Commercial Property Insurance

(In case your company “falls down and goes boom”)

Greg Lewerer | June 14, 2018
Businessman standing in front of office building.

Whether you specialize in rabbit herding, doll furniture painting, or something a little more conventional, keeping your doors open and revenue flowing is at the top of your daily to-do list. But operations can go south in a hurry if you’re hit with a worst-case or even a less-than-deal scenario. 

Commercial property insurance is pretty important, especially if you don’t want your business to crumble from one tiny hiccup. Our independent agents will walk you through top options and help you find the right policy to keep your business upright.

What Is Commercial Property Insurance?

Commercial property insurance—also called buildings insurance—is there to reimburse you for the value of your business’s stuff, like buildings, equipment, inventory, and even customers’ personal property in case it’s lost or damaged due to a number of causes.

Is Commercial Property Insurance Mandatory?

It’s not legally required, but most lenders will want you to have it before they pass over the funds. Also, not having it means you’re responsible for replacing all your business’s stuff. So if you’re not a fan of sudden catastrophic debt, we recommend this insurance.

Why Do I Need Commercial Property Insurance?

Commercial property insurance is like the strait-laced, dependable partner in a buddy cop movie—it has your back, so you can continue with your usual shenanigans. With it, your business (and income stream) are protected. Without it, the bad things you could be on the hook for include:

four risks for commercial property
  • Bankruptcy and closure: Rebuilding your business from scratch—or even just replacing part of it—is so expensive that it’s often impossible without an insurance payout.
  • A ruined reputation: If your customer’s stuff gets destroyed and you can’t afford to replace it, they’ll probably hate your guts and never forgive you or do business with you again.
  • Legal trouble: Defaulting on loans, being unable to pay vendors and employees, or failing to reimburse your customers can land you in hot water—and court.
  • Spoiled inventory: Even if your buildings and equipment are fine, a simple power outage can ruin perishable inventory like food and flowers and bring a business to its knees. (More on that below.) Insurance can cover that.

What Does Commercial Property Insurance Cover?

It covers the physical stuff that makes up your business, which means that coverage varies wildly depending on your business. Do you run a tasty, tasty taco stand? Then your policy would probably cover the stand itself, cash register, employee uniforms, all your taco fixings…you get the picture.

Some policies reimburse you for what it will cost to replace these items if they’re destroyed, and some will reimburse you for their actual value instead—usually a lower amount, thanks to depreciation.

Depending on your location, these types of coverage are included in most policies:

  • Fire, Theft, Tornado, Wind, Flood, Hail, Earthquake, Hurricane

Commercial property insurance offers a giant smorgasbord of options that need to be mixed and matched to fit your business. You can also add protection a la carte for coverage that is specific to your business.

Example: Spoilage coverage reimburses you for inventory ruined in power outages or other storage-related screw-ups, perfect for businesses that work with perishable materials, like florists and said taco truck.

Insurance for Everyone.

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How Much Does Commercial Property Insurance Cost?

Depending on the blend of coverage and a number of other factors like size and location, costs can vary from a few hundred bucks to millions per year. 

So a giant sawdust-factory-slash-ice-cream-shop in Tornado Alley will be looking at the higher end, while an itty-bitty tricycle repair shop in a small town with low crime will be looking at the lower end. 

What’s So Great About an Independent Insurance Agent?

Independent agents will walk you through a handpicked selection of sweet commercial property policies. Not only that, they’ll cut the jargon and clarify the fine print, so you know exactly what you’re getting.

Most importantly, they’ll be there to help you when claim time comes. The outcome of commercial property insurance claims can be strongly impacted by how the process is approached and handled.

Finding Commercial Property Insurance Quotes

Our gifted agents will review your needs and help you evaluate the commercial property insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection. 

TrustedChoice.com Article | Reviewed by Paul Martin

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