Commercial Property Insurance | Travelers Insurance (2024)

FAQs

What is a commercial property policy in insurance? ›

Commercial property insurance definition

Commercial property insurance protects your company's physical assets from fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods typically aren't covered by commercial property insurance, unless those perils are added to the policy.

The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.

In short: Commercial property insurance can help cover the things your business owns. Liability insurance can help cover expenses if you are at fault for an injury with the people you interact with (excluding employees) or damage to property you don't own.

Property insurance is a broad term for a series of policies that provide either property protection or liability coverage for property owners.

Commercial insurance is divided into two main categories: property insurance and casualty insurance.

Commercial property insurance also doesn't cover wear and tear, intentional damages, or liability.

More Claims

And when insurance companies have to pay out, they need to take more in. That's just how insurance works. If they ran out of money, they wouldn't be able to pay future claims. Over time, this leads to higher premiums for everyone (not just the ones who filed a claim).

The standard commercial property insurance deductible is $250.

What is covered under property insurance? ›

Home insurance usually covers the structure of your home and your personal belongings, typically covering the cost to repair or rebuild your home after a covered event, such as fire, hurricane, vandalism, or theft. Many policies will also cover detached structures, such as a garage, shed, fence, or gazebo.

The business model of commercial insurance involves pooling premiums from multiple businesses to cover potential claims, managing risks through underwriting, and investing premium income to generate profits.

The IRS considers homeowners insurance to be a non-deductible personal expense. However, there could be some situations or business purposes where you may be able to partially deduct certain expenses, like if you run a business out of your home.

Business property insurance covers your buildings, the contents within those buildings, and loss of income if you're out of business due to a claim. It can help protect your business in case of unexpected accidents or tragedies like fire, theft, wind damage, or even a building's collapse under the weight of snow.

Contrary to popular belief, the law does not mandate property insurance for home loans or for loans against property in India.

"Commercial policy" is an umbrella term that describes the regulations and policies that dictate how companies and individuals in one country conduct commerce with companies and individuals in another country. Commercial policy is sometimes referred to as "trade policy" or "international trade policy."

These refer to the obligations and rights of the insurance company and the insured. Common conditions apply to every type of coverage on a CPP. This includes Examination of Books and Records, Transfer of Rights and Duties, Cancellation, Policy Changes, and Premiums.

A CPP provides businesses with more options and flexibility when putting together their business insurance program. With a BOP, you get the three coverages that are assigned to the policy, but with a CPP, you can basically design your insurance bundle from scratch to better fit your business's needs and risk profile.