Insurance Line

Commercial Property Insurance – Free Quotes by Econosurance

In business, one of the most valuable assets you own is the building itself. However, even if you do not own the building, but instead lease it out, you can still benefit from commercial property insurance. 

Commercial property insurance can be sold separately, but it is also one of the core coverages of business owners insurance

What Is Commercial Property Insurance?

Commercial property insurance can cover any commercial property your business uses. It will protect you from damages caused by the range of perils listed in the policy. Covered losses can include fire, theft, and natural disasters. 

There are a large number of businesses who benefit from commercial property insurance. These include retailers, manufacturers, service-orientated businesses, as well as not-for-profit organizations. 

If you purchase commercial property insurance as part of a business owners policy, then it will also come bundled with general liability insurance

What Does Commercial Property Insurance Cover?

Commercial property insurance is designed to protect the building structure and all the assets inside the building or in its immediate vicinity. These include:

  • Stock and inventory
  • Personal property
  • Tools
  • Furniture
  • Production equipment
  • Plants and outer adornments
  • Signage
  • Vital documents

The insurance policy covers damage to the building or commercial property in the event of fire, explosions, storms, hurricanes, burst pipes, theft and vandalism. However, earthquakes and floods are usually not covered by commercial property insurance. To get covered for these high impact events, talk to the insurance agency whether it can be added as an extension to your commercial property insurance or whether you need to take out a specific flood or earthquake insurance policy.

Commercial property insurance typically does not cover wear and tear. Wear and tear are a common cause of disasters and damage, but it is the business owner’s responsibility to avoid those damages with proper maintenance, and cover the costs when something breaks.

Consider Inland Marine Insurance

If you run a business where a significant proportion of your property is on the go frequently, for instance, at a delivery or construction company, you should also consider inland marine insurance. While commercial property insurance covers the stationary aspects of your business, inland marine insurance covers property that is in transit. It only applies to land transportation, e.g., shipping something by a truck. 

The occasions that might require inland marine insurance include collisions, cargo theft, weather damage, explosions, and fires. Weather damage can be caused by hazards like hail, rainstorm, and strong wind, and cause $2.2 billion to $3.5 billion dollars of losses for trucking companies annually.

Inland marine insurance typically covers specialty items and equipment used for the business. For example, you can have coverage for personal computers and computer systems, scientific equipment, sales samples, items for delivery, construction equipment, tools, and so on. However, if you own the truck used for transport, the vehicle itself is not covered. To cover the vehicle, you are going to need commercial auto insurance

Factors Affecting Commercial Property Insurance

A range of factors is taken into account when calculating the cost of commercial property insurance. These include:

  • Construction Just like a house, the construction materials are essential for determining risk. Combustible materials, such as wood, will increase the risk of the property. Whereas fire-resistant interior walls, floors, and doors will be perceived favorably by the insurance company.
  • Location – If your business is near a fire station or other essential facilities, then your property is considered to have lower risk, thus the cost of insurance decreases.
  • Fire and theft protection – Alarms, sprinkler systems, distance from fire stations and fire hydrants are all taken into account when considering the risk of a commercial property.
  • Occupancy – What kind of business is conducted at a building is a key factor in estimating risk. For example, a restaurant has higher risk of fire than an office. Additionally, when multiple tenants occupy the same building, the presence of one hazardous occupant will affect the entire building’s fire rating and everyone’s insurance. 

When to Take Out Commercial Property Insurance

If you own a small or medium-sized business, the chances are, you need commercial property insurance. Even if you just rent an office or workspace, you still need protection. Some landlords will also request proof of commercial property insurance from their business tenants, and mortgage providers will require it before granting a loan. 

Consider insuring the following elements of your property:

  • The building itself, irrespective of whether you own or rent the business 
  • Any equipment that you own or lease inside the building, including computers, furniture, and phone systems
  • The total inventory on the premises
  • Accounting records and essential company documents
  • Signage
  • Manufacturing or processing equipment
  • Building ornaments and decorations, including fences and vegetation

How to Save Money on Commercial Property Insurance

Commercial property insurance can save you a lot of money when damages happen. However, why not also save on the policy itself? Follow these tips to get the best deal:

  • It starts with the building – If you are a small neighborhood business, you do not need an office block. Find a premise that is right for your business so the commercial property insurance would also be appropriate.
  • Correctly value the building – Once you have the right space, there is no need to over-insure. When taking out insurance, make sure you are covered for what you own or rent, but no more. 
  • Shop around – Not all insurance companies evaluate risk the same way and their quotes can be different. To find the best offer, it is best to get quotes from multiple insurers. 
  • Combine policies Many insurance providers offer to bundle policies together and give you a discount for it.
  • Secure the property – Burglar alarms, sprinkler systems, fire alarms, and deadbolt locks will all decrease the risk of fire and theft, giving insurance companies a reason to lower the premiums.
  • Ask for discounts – Always ask an insurance provider if there are any discounts for which you are eligible. 
  • Look into tax implications – Insurance is tax deductible, so do not forget to write off those costs.

As an independent business ourselves, we know the value of good insurance. Send us an email to not go a day without proper coverage.

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