Commercial Property Insurance

Commercial property insurance covers a business’s first-party property from accidental damage, vandalism, or loss. It is essential for any businesses with a physical location (such as a store, office, or studio).

You might be asking yourself if you really need a new type of coverage when you have general liability insurance. The answer is, yes. While general liability insurance covers damage to property of third parties (your clients’ and other people’s property), commercial property liability insurance protects your business’s physical assets and valuable business resources.

Does your small business rent, lease, or own a physical location? Does that property contain valuable assets, such as equipment and inventory? Then you probably need commercial building insurance.

This type of business insurance works even when you’re not working. Business building insurance protects your (proverbial) house, while business contents insurance covers your vital equipment 24/7, so you can sleep soundly knowing that the assets you need to succeed are protected.

Commercial real estate insurance comes in the form of general liability insurance and commercial property insurance. With a Business Owners Policy (BOP), you get both. A BOP is a package of general liability insurance and commercial property insurance. It helps small- to medium-sized businesses protect their company from the daily risks the company may face.
With BOP insurance you’ll be covered with:

• General liability insurance – This type of coverage provides the investigation, defense, and settlement for third-party claims stemming from bodily injury, property damage, and personal and advertising injury.
• Commercial property insurance – Provides business building insurance, business contents insurance or both to protect your business’ assets inside and nearby your property.

The cost of the commercial property liability policy will depend on your liability limit and the location of your property. Certain factors impact an address’ safety rating (and premium cost), such as:

• Building materials
• Adjacent exposures
• Proximity to a fire station
• The building’s sprinkler system (or lack of)

Furthermore, commercial property insurance carriers will factor in the coverage limit you select into your premium cost. Through Thimble, businesses can get up to $1 million worth of building damage covered, and up to $500,000 worth of content damage covered. Not all businesses may need as much, and you have the option to select a lower coverage limit that works for you when requesting a quote. Get an insurance quote for commercial property coverage with one simple click and just a few minutes.

As with all types of insurance, commercial property insurance has exclusions, or particular kinds of risks that aren’t covered. Some of the common exclusions for commercial property insurance are:

• Deliberate property damage caused by the insured
• Business interruptions unrelated to covered property damage (staffing shortages, shutdowns due to pandemic, etc)
• Acts of God (flood, tornado, earthquake)
• War
• Wear and tear
• Property that is lost, damaged, or vandalized off-site
• Some other kinds of business property:
  • Vehicles
  • Building foundations
  • Cash and bonds
  • Crops
  • Animals (other than livestock)
  • Data
  • The cost of excavation

Always make sure you read your policy and understand the specifics of your coverage to identify what’s excluded. If needed, talk to your commercial property insurance agent (or company) to clarify questions. In addition, take the necessary steps to mitigate your risk profile. To do so, keep your property in good repair, and your equipment up to date. In addition, take out specific insurance for your vehicles (auto insurance), and for your data (cyber insurance).