Demont Insurance Agency Blog

Commercial Property Insurance: What it Will and Will Not Cover

Whether you own your own business, lease office space, or work from home, protecting your workspace is important. You want to make sure that you have the right amount of insurance to protect your assets without breaking the bank. Commercial property insurance is one way to ensure the safety and functioning of your business, should an accident or other unforeseen event occur.

Your physical space is essential to the work you do, and without it, your business can suffer. When emergencies or natural disasters occur, your physical space could be compromised. You want to make sure that you can fix what is broken so that you can get back to the business at hand.

Commercial Property Insurance

Commercial property insurance is an essential part of your business’s insurance policy coverage. Commercial property insurance protects your company’s tangilbe assets from certain kinds of emergencies, natural disasters, or other accidents.

A commercial property insurance policy could cover your company’s physical location from the following circumstances:

  • Fires
  • Explosions
  • Pipes bursting
  • Theft and vandalism
  • Storms

A commercial property insurance policy covers items like; furniture, technological equipment, exterior signage, fencing, and landscaping, Company inventory, and essential documents are covered as well. Even the property of third parties inside your company’s physical location could also contain a level of coverage.

What Commercial Property Insurance Won’t Cover

Commercial 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.

Some locations are more prone to certain kinds of weather or natural occurrences than others. If you live in one of these areas, your commercial property insurance needs to be different. Because of an increased risk of damage, this difference could cause a fluctuation in your costs for commercial property insurance as well,

If you live in a location that is prone to flooding, earthquakes, hail, or extreme wind, you can add on an insurance rider to your commercial property insurance policy. These riders can cover you against physical property damage from these events. If your standard insurance policy isn’t going to protect your business’s physical property from damage that is common in your area, you will need to find ways to fill those coverage gaps.

Additionally, since commercial property insurance focuses on damage to physical property, you will still need to consider your other insurance needs. Liability insurance and workers compensation insurance policies are two insurance considerations you should make if you own or operate your own business.

Do You Need Commercial Property Insurance?

Commercial property insurance is useful if you own your business space, lease commercial property, or even if you work from home. If you own or lease commercial space, you are taking on a significant investment, which could be anything from a large factory setting to a small office space. Depending on your business, you could be overseeing a 24-hour hustle and bustle or a standard 9-5 office environment.

If you work from home, you might not consider your environment to be a commercial property. You are indeed working out of this space, though, which makes it a commercial endeavor. You may want to consider looking into how a commercial property insurance policy could benefit you and your physical business space.

When you own or operate your own company, you want to make sure you are protected on all fronts. Various insurance policies can help you protect your financial assets, cover your employees and third parties in case of accidents on the job, while commercial property insurance protects your physical assets in case of accidents, natural disasters, or emergencies.

Commercial Property Insurance Costs

Commercial property insurance premium costs depend on a few factors. Your company’s insurance costs depend on your:

  • Company’s overall assets.
  • Occupancy of the building.
  • The age and construction of the building.
  • If there are fire systems in place.
  • The existence of a security system.
  • Other fire or theft protections in place.

These factors influence your business’s risk of physical damage. If your building is in a location prone to storms or natural disasters, this can raise your premium rate. If your building’s structure is older, it may be more inclined to damage, because of an accident or emergency. Adding in systems like fire alarms, sprinkler systems, and security alerts can help decrease insurance costs in some cases.

To learn more about commercial property insurance, contact the experts at Demont Insurance at (800) 522-1997. Our licensed insurance experts will be happy to answer any questions you have.


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