Commercial property insurance protects the physical assets your business depends on: your building if you own it, plus equipment, furniture, inventory and supplies. A fire, burst pipe or break-in can stop your operations; this coverage helps you repair, replace and reopen.
What commercial property insurance covers
- Buildings: structures you own, including permanent fixtures.
- Business personal property: computers, machinery, furniture, inventory and supplies.
- Tenant improvements: upgrades you made to a rented space.
- Property of others: customer property in your care, depending on the policy.
Common covered causes of loss
Fire, smoke, windstorm and hail, theft and vandalism, explosions and sudden water damage from plumbing are typically covered, depending on the policy form.
Common exclusions
- Flood and earthquake, which require separate coverage.
- Wear and tear, mold and pests.
- Equipment breakdown, unless added.
- Property in transit or at job sites, which may need tools and equipment coverage.
Replacement cost vs. actual cash value
Replacement cost coverage pays to replace damaged property with new property of similar kind and quality. Actual cash value subtracts depreciation, so you receive less. Replacement cost usually costs more but provides stronger protection.
Business interruption coverage
If a covered loss forces you to close temporarily, business income coverage can replace lost profits and pay ongoing expenses such as rent and payroll. It is often included in a business owner’s policy.
Protect your space, equipment and inventory
Get commercial property coverage online, alone or bundled with general liability, with NEXT Insurance.
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Frequently asked questions
Do I need property insurance if I rent my office?
Usually yes. Your landlord’s policy covers the building, not your equipment, inventory or improvements.
How much property coverage do I need?
Enough to replace your equipment, inventory and furniture at today’s prices, plus your building if you own it.
Is commercial property part of a BOP?
Yes. A business owner’s policy combines commercial property and general liability.
Related business insurance guides
This page is for general information only and is not insurance, legal or tax advice. Requirements, coverage and prices vary by state, industry and insurer. Review policy documents and speak with a licensed agent before buying.