If you own a business, you likely own physical property related to that business. Physical property such as your store, restaurant, offices and all its contents must be protected under the right commercial property insurance. This type of insurance is designed to protect businesses who suffer physical and financial damage due to certain accidents.
Commercial property insurance can come in many different business packages such as a business owners policy or you can purchase it alone. Keep in mind that commercial property covers physical perils and doesn’t include liability protection.
What Does Commercial Property Insurance Cover?
Commercial property insurance generally covers damages due to fire, wind, hail, lightning, explosions, theft, vandalism, burst pipes and storms.
It can cover belongings such as:
· Business building
· Work equipment
· Outdoor signs
In general, commercial property insurance covers damages to the physical property of your business if caused by an accident or natural disaster.
What Does Commercial Property Insurance Not Cover?
Commercial property insurance does not usually include earthquake or flood coverage. These are separate coverages you can add to your company’s commercial property policy. While commercial property insurance covers computers, it doesn’t cover the information on those computers. Nor does commercial property cover work vehicles, which require commercial auto insurance.
Overall, items not covered beneath commercial property insurance are:
· Commercial Vehicles. Even if you use a personal vehicle for work purposes, you may need commercial auto insurance. Commercial property also may not cover equipment in transit.
· Cyberattacks. You can purchase cyber liability insurance to protect client information or assets stored digitally. Commercial property will cover the physical computer except in cases of normal wear and tear or hardware/software failure.
· Earthquakes or floods. Earthquake coverage and flood coverage almost always come as an additional policy. If your area is prone to either of these perils, you may want to invest in extra insurance.