Commercial Property Insurance (2024)

FAQs

What is commercial property insurance for dummies? ›

Commercial Property Insurance

Property insurance covers the building structure itself, as well as business property such as equipment, inventory, furniture, and more. Covered perils in a property insurance policy usually include losses from fire, storms, theft, burglary, or vandalism.

Property location plays a major role in determining the cost of your policy. If you own a business in an area with a high crime rate or that experiences a higher-than-average number of natural disasters, your premiums will likely be impacted.

Commercial insurance by its very nature is complex. However, it is possible with the assistance of a competent licensed broker-agent to steer clear of the pitfalls and make good decisions when purchasing insurance for your business.

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.

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 standard commercial property insurance deductible is $250. However, other deductible amounts are available and the deductible applies only once per loss.

Ask for a higher deductible

Typically, the higher the deductible, the lower your premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.

Surprisingly Great Rates - State Farm®

Business insurance rates are based on a narrow set of information that is available on your credit report and business insurance companies are allowed to use only those specific types of information from your credit report.

What is the most profitable commercial insurance? ›

Key Takeaways

The three types of property insurance coverage are replacement cost, actual cash value, and extended replacement costs.

One of the most influential factors affecting rates is the cost of replacing a commercial building. For instance, a million-dollar building insured for $1 million a few years ago would now cost about $1.3 million to replace.

On the other hand, one of the main disadvantages of owning commercial property is that it can require more management and maintenance than residential property. Commercial property owners have to deal with more complex legal and regulatory issues, such as zoning, environmental, and safety standards.

The increasing frequency and severity of extreme weather — which scientists link to climate change — means bigger payouts by insurers, leading to higher premiums for millions of Americans.

A standard homeowners insurance policy will cover damage to the physical structure, damage or loss of personal property, liability in case someone sues for getting injured on your property, medical costs to the injured party, and additional living expenses if you need to be out of the home while being repaired due to a ...

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.

What Commercial Property Insurance Won't CoverCommercial property insurance doesn't cover everything. Damage from earthquakes and floods may not be included under your commercial property insurance policy. Some commercial property policies won't cover damage to your property due to a windstorm or hail damage, either.

Commercial health insurance, also called private health insurance, is coverage issued by a private company or entity. It is not from government-issued insurance like Medicare or Medicaid. Commercial health insurance companies include: Aetna. Anthem.