Commercial property insurance helps safeguard your business from unexpected expenses after an incident that causes damage to its physical structure and other assets, such as equipment. Insurance can save your business from the financial burden of costly out-of-pocket expenses related to lost, stolen or damaged property.  

What Is Commercial Property Insurance? 
Commercial property insurance shields business owners from the risks of owning or leasing physical property. In the event of unforeseen damages or accidents, this insurance policy covers the costs of repairs to get your business back up and running quickly. 

Typically, a commercial property insurance policy covers a wide range of risks, including building or structural damage to the property owned or used by your business; lost, stolen or damaged equipment; and fire, theft or other causes of loss. 

Are Businesses Required to Have Commercial Property Insurance? 
Lenders and landlords may require commercial property insurance, but even if not required, all business owners should consider it to safeguard their assets and protect against potential financial losses. Without this insurance, your business may be exposed to expensive repairs and replacements.  

Is Commercial Property Insurance Expensive? 
The cost of commercial property insurance is determined by various factors. Insurers typically assess the risks your business may face by considering the following variables: 

• Location—If your business is in an area prone to natural disasters such as wildfires or severe weather, your insurance rates may be higher.
• Building details—The age and condition of critical aspects of your building, such as plumbing and electrical systems, can impact your premiums. Older or outdated buildings may be more expensive to insure.
• Business operations—Certain industries may have higher risks than others, which could lead to higher premiums.
• Safety systems—Implementing safety systems such as security measures and sprinklers can reduce your business risk and potentially lower your premiums. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.