Your business’s physical assets — your building, equipment, inventory, and furnishings — represent years of investment and effort. Commercial property insurance protects those assets against the unexpected. Here’s what you need to know.
What Commercial Property Insurance Covers
Commercial property insurance protects your building (if you own it), business personal property, equipment, inventory, and sometimes improvements you’ve made to a leased space. Covered perils typically include fire, theft, vandalism, wind, hail, and certain types of water damage. It can also cover loss of income if a covered event forces you to temporarily close your doors.
Replacement Cost vs. Actual Cash Value
One of the most important decisions you’ll make when purchasing commercial property insurance is choosing between replacement cost and actual cash value coverage. Replacement cost coverage pays to replace your damaged property with new items of similar kind and quality. Actual cash value coverage pays out the depreciated value of the damaged property — which may be far less than what it costs to actually replace it. For most businesses, replacement cost coverage is the smarter choice.
What Property Insurance Doesn’t Cover
Standard commercial property policies typically exclude flood damage (you’ll need a separate flood policy), earthquake damage (a separate earthquake endorsement or policy is required), and losses from employee theft (which requires a crime or fidelity bond). Understanding your exclusions before a loss occurs is essential.
Specialty Inventory Requires Specialty Coverage
If your business stores high-value, regulated, or temperature-sensitive inventory — such as cannabis, hemp, pharmaceuticals, peptides, or specialty foods — standard commercial property policies may not respond correctly. Bozzuto Group works with specialty carriers who understand the unique characteristics of these products and can design coverage that actually protects your inventory.
Get a Property Coverage Review
Many businesses are significantly underinsured on their property — carrying limits set years ago that no longer reflect current replacement costs. Bozzuto Group offers complimentary coverage reviews to help you identify gaps and ensure your property is properly protected. Contact us today.