Commercial Property insurance protects the physical assets that your business depends on to operate — from the building itself to the equipment, inventory, and furniture inside it.
What Does Commercial Property Cover?
Building / Structure: Covers the physical building your business owns — including permanently installed fixtures, machinery, and equipment — against covered perils such as fire, windstorm, hail, vandalism, and theft.
Business Personal Property (BPP): Covers furniture, equipment, computers, inventory, raw materials, and other property you own and use in your business operations.
Property of Others: Some policies extend limited coverage to property belonging to clients or vendors while it is in your care, custody, or control.
Covered Perils vs. Excluded Perils
Most commercial property policies are written on a "special form" basis, which means they cover all risks of direct physical loss EXCEPT those specifically excluded. Common exclusions include:
- Flood — requires a separate flood insurance policy
- Earthquake — usually requires a separate endorsement or policy
- Wear and tear — gradual deterioration is not covered
- Mechanical breakdown — requires Equipment Breakdown coverage
Business Income (BI) and Extra Expense
This is one of the most important — and most underused — components of a commercial property program. If a covered loss forces your business to close temporarily, Business Income coverage replaces lost net income and pays ongoing fixed expenses (rent, payroll, loan payments) during the restoration period.
Extra Expense coverage pays the additional costs to keep your business operating during the restoration — such as renting temporary space or equipment.
How to Avoid Being Underinsured
The most common property insurance mistake is insuring for less than the true replacement cost of your property. Replacement cost values change over time, and many businesses have not updated their insured values in years.
Work with your agent annually to review replacement cost estimates and update your coverage limits accordingly.
Work With Capital & Co
Capital & Co can conduct a thorough property coverage review, identify gaps in your current program, and help you build a commercial property solution that accurately reflects the value of your business assets.
Questions About Your Coverage?
Speak with Capital & Co about a strategy built for your business.
