What Is Commercial Property Insurance?


If you woke up tomorrow and learned that your office building had burned to the ground, how would that affect your company and its cash flow? On paper, this might sound like a far-fetched scenario, but in 2021 alone, natural disasters caused $145 billion in damage across the United States.

The good news is that protecting your business from potential threats doesn’t have to be complicated — all you have to do is take out a commercial property insurance policy. Keep reading to find out why commercial property insurance is a must-have for businesses and non-profits alike.

What Is Commercial Property Insurance?

Like the name says on the tin, commercial property insurance protects business property against natural disasters, accidents, and crime. Whether you’re an industrial manufacturer or an e-commerce company, every business has a few key pieces of equipment that it needs to function. Commercial property insurance can compensate you if your property is damaged because of events outside of your control.

Generally speaking, this type of insurance coverage will come in two forms:

  • Comprehensive or all risks
  • Specified peril

If you have all risks commercial property insurance, you’re protected against pretty much anything except for the perils that you specifically exclude. Meanwhile, specified perils coverage means that you’re only protected against the perils you’ve included in your policy.

Companies in a wide range of industries and sectors will often rely on commercial property insurance as a major part of their financial strategy.

Should You Purchase Commercial Property Insurance for Your Business?

The primary benefits associated with commercial property insurance include:

  • Being able to protect your company finances in the event of a disaster
  • Coverage that can include both your physical building and your equipment
  • Getting coverage whether you lease or own your building

As a business owner, you may not be able to predict the future or control the weather, but commercial property insurance can give you peace of mind. Even if the unthinkable happens and your building is vandalized or destroyed, you can sleep at night knowing that your company assets and your livelihood are properly insured.

What Factors Might Affect Your Insurance Options?

Even though it’s often recommended that all businesses buy commercial property insurance, not everyone will be offered the same rate. Price-influencing factors that your insurance provider will probably look at include:

  • Your location
  • Your claims history
  • The age of your building
  • The replacement and/or cash value of your building and equipment

Commercial property insurance comes in many different forms. As such, it can be hard to figure out what’s best for your business. Places like propertyinsurancehq.com can help you understand your insurance options. 

Protect Your Business With Top-Notch Insurance

Although no one likes to imagine their business going up in flames, you never know when you might find yourself dealing with a sudden rash of bad luck. Commercial property insurance can help with everything from the cost of replacing equipment to the expenses involved with repairing your building. If you don’t already have this type of coverage for your business, you may want to get on the phone with an insurance professional ASAP.

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