Commercial Property Insurance: The Complete Guide

Commercial property insurance is a type of insurance policy that covers the physical assets of a business. Some of the common things covered under commercial property insurance include:

• Building Coverage: This covers the physical structure of the building, including walls, floors, roofs, and other permanent fixtures.
• Business Personal Property Coverage: This covers the equipment, furniture, inventory, and other items that are used in the course of doing business.
• Business Income Coverage: This covers the loss of income a business may experience if it cannot operate due to a covered event, such as a fire or natural disaster.
• Extra Expense Coverage: This covers the additional expenses a business may incur to keep operations going after a covered event.
• Equipment Breakdown Coverage: This covers the repair or replacement of equipment that is damaged due to mechanical or electrical breakdown.
• Spoilage Coverage: This covers the loss of perishable goods, such as food or medicine, due to equipment failure or power outages.
• Crime Coverage: This covers losses due to theft, burglary, and other criminal acts.

The specific coverage included in a commercial property insurance policy may vary depending on the procedure, the insurer, and the needs of the business.

While commercial property insurance covers a wide range of physical assets used in the course of doing business, some things are typically excluded from coverage. These exclusions may vary depending on the policy, the insurer, and the needs of the business.

Some common exclusions from commercial property insurance include:

• Earthquakes and Floods
• Acts of Terrorism
• War and Military Action
• Wear and Tear
• Intentional Acts
• Cyber Attacks
• Pollution

When purchasing commercial property insurance, you must accurately value your property to ensure that you are adequately covered. Here are some steps to help you value your property for insurance purposes:

• Create a Detailed Inventory
• Determine Replacement Cost
• Consider Depreciation
• Calculate the Total Property Value
• Update your inventory regularly

Lastly, consult with an insurance agent to determine the appropriate insurance coverage level based on your property's value and your business's specific needs.