What is Commercial Property Insurance?
Businesses that own property have a lot invested in their land and buildings, and those assets should be protected. After all, few businesses could afford to replace their facilities if the facilities were destroyed. Commercial property insurance offers protection against a variety of perils for property that businesses own.
Commercial property insurance may be likened to homeowners insurance. Just as homeowners policies help protect houses that people own, commercial property policies help protect buildings and land that businesses own.
Both policies even frequently offer coverage for items kept inside an insured building. Most homeowners policies include personal property coverage, which often covers furniture, clothes, electronics, and other personal belongings. Similarly, most commercial property policies have business personal property coverage that may insure furniture, electronics, moveable equipment, and other items. (The exact protections that homeowners and commercial property policies provide can vary.)
Commercial property policies, however, do differ from homeowners in a significant way. While most homeowners policies include liability coverage, commercial property policies generally don’t. They usually only offer property coverages. Businesses usually purchase liability protection through other insurance policies.