See the 12 Types of Commercial Property Insurance - Complete

There are various Types of Commercial Property Insurance as they’re all designed to protect the property and assets of a business, including its income and revenue, as well as protect your business from a variety of risks. It covers fire, theft, vandalism, and other losses that can affect your business’s ability to operate.

Commercial property insurance is a complex area, and many types of commercial property insurance exist.

Commercial property insurance is a type of Coverage that protects businesses from the financial impact of damage or loss to their property. Commercial property insurance covers a variety of losses, but it’s essential to understand what’s covered and what isn’t.

Commercial property insurance is a type of insurance that protects commercial properties, such as businesses and stores.

Commercial property insurance policies vary based on your business type and what you need Coverage for. The following are the more common types of commercial property insurance:

Table of Contents

12 Types of Commercial Property Insurance

Here are some of the most common types of Commercial Property Insurance…

Commercial General Liability Insurance
Business Owners Policy (BOP)
Fire Protection Coverage
Specialized Commercial Property Insurance
Commercial Auto
Tenant’s policy
Commercial Building Insurance
Business Interruption Insurance
Business Personal Property Insurance
Crime Insurance
Renters’ insurance
Medical Payments Coverage

#1. Commercial General Liability Insurance

Commercial General Liability (CGL) coverage protects a business from claims that it may be responsible for causing injury or damage to others’ property through negligence or other actions taken on behalf of an enterprise.

General liability protects against bodily injury and property damage claims made against your business resulting from accidents that occur while it’s open to customers… such as slips, falls, and defective products.

This Coverage can include medical expenses incurred by any person who suffers an injury due to an accident caused by another party’s negligence while using an insured’s premises or products/goods sold through its business operations.

Liability insurance pays for legal costs if someone sues you for bodily injury or property damage caused by your negligent actions or failure to act when there was a risk that others would be injured. Liability coverage can apply either broadly (to cover any damages) or specifically (to cover specific damages).

It helps protect you against lawsuits related to injuries caused by accidents on your premises or by defective products manufactured by your company or sold under your brand name. Liability coverage also includes medical payments coverage for employees injured on the job, no-fault workers’ compensation coverage, contractual liability insurance, and directors and officers liability coverage.

This Coverage protects you if someone is injured on your property or if they suffer damage because of something you did or failed to do while conducting business operations, such as a slip-and-fall accident at a store entranceway.

It Protects you in case someone sues you for bodily injury or property damage that happened on your premises or during an event that took place there.

This type of insurance also covers your business if you get sued by someone who was injured on your property or if they claim that your business’s products or services caused them harm. It also covers you if someone else sues you for any reason relating to your business.

It covers damages caused by an insured party to another person or business. For example, if your company accidentally spills paint on someone’s vehicle, liability insurance would help pay for repairs.

#2. Business Owners Policy (BOP)

This insurance covers the business owner’s personal assets if damaged or destroyed in a fire or other disaster. It also covers the business itself and its inventory (the goods it has for sale).

A BOP combines several different types of insurance into one package. It covers your business’s buildings, contents, and liability, as well as your personal property.

Its Coverage for each component can vary between providers, but at a minimum, you should have protection against theft, fire damage, and other natural disasters like floods or earthquakes.

You may also want to consider adding Coverage for additional hazards, such as vandalism or other criminal acts committed against your building or its contents by others who aren’t employees or contractors hired by your company (such as contractors hired by a client).

BOPs combine different types of coverage into one policy, including liability, fire, theft, and other physical damage. BOPs are designed for small to medium-sized businesses with fewer than 20 employees and less than $1 million in annual revenue.

This type of Coverage protects your business from losing income after a fire or other disaster strikes. If you have no income because of an event covered by this policy, it will pay for lost profits until things return to normal.

It covers the costs of lost profits when structural damage prevents you from operating your business. For example, suppose your building was damaged by fire, and you could not conduct business operations while repairs were being made. In that case, business interruption coverage could help you pay your employees during that period.

#3. Fire Protection Coverage

Fire protection coverage is all about preventing fires from happening in the first place. There are several different levels of fire protection coverage available at different prices, depending on how much risk you’re willing to take on (and how much money you want to spend).

It even covers Equipment breakdowns, such as parts and labor costs for equipment repairs after an accident or disaster occurs at your place of business (such as fire).

Some policies only cover damage caused by fire; others provide additional benefits like smoke damage cleanup or theft prevention measures such as alarms installed by professionals who know what they’re doing—which can help prevent fires before they start!

#4. Specialized Commercial Property Insurance

This Covers specific types of property in your business. For example, if you have a retail store that sells jewelry, you may want specialized commercial property insurance to cover your jewelry inventory against theft or loss.

Specialty policies are also in the Category as they cover specific risks not covered by a BOP or other general-purpose commercial property insurance policy. In addition, these policies provide additional Coverage for these items if you have unique assets such as fine arts or collectibles.

#5. Commercial Auto

This type of insurance covers vehicles owned by businesses and used to transport goods or passengers.

It also covers vehicles used for other purposes, such as delivery trucks and company cars used by employees who spend most of their time driving for work purposes rather than commuting to work from home.

#6. Tenant’s policy

This type of insurance covers the tenant’s personal property if it is damaged or destroyed by fire or other disasters. However, it does not cover the building in which the tenant operates their business.

#7. Commercial Building Insurance

This type of insurance covers damage to or destruction of your building, including any fixtures, furniture, and equipment inside. It also covers damage caused by fire, wind, or lightning. For example, if you rent space in a shopping mall, you can get this Coverage through your landlord.

This Coverage reimburses you for any damage to your building caused by fire or other perils. It also covers loss of use if you can’t use your facility following a claim.

This Coverage protects your building from damage caused by fire or other natural disasters. It also covers damage from water leaks or burst pipes.

It Covers damage to the actual structure of a building due to fire or other perils. This Coverage comes in two forms: Actual Cash Value (ACV) and Replacement Cost Coverage (RC). ACV policies payout based on what the building would be worth if it were sold as is; RC policies payout based on how much it would cost to rebuild the damaged structure.

This type of commercial property insurance covers damage to your building and any other physical assets you own. When shopping for this type of policy, you must understand the difference between actual cash value (ACV) and replacement cost value (RCV) because they have different effects on your premiums…

ACV policies reimburse you for what an item costs today rather than what it would cost to replace it new. However, ACV policies also require you to pay a portion of any loss — sometimes up to 50% — before they will cover any additional expenses associated with the claim. Therefore, if you’re concerned about rising prices or want to avoid having to pay out-of-pocket for damages, RC

Building insurance covers damage to the structure of your building, including the foundation, walls, and roof. Contents insurance is also involved here as it protects your inventory and other personal property inside your building.

Commercial property insurance covers the building and its contents against damage or loss from fire, storms, vandalism, theft, and other perils.

#8. Business Interruption Insurance

This type of insurance will pay you for lost income if your business is forced to close because of damage caused by an insured peril (such as fire). It will also help pay for temporary housing while repairs are being made.

Business interruption Coverage Covers the building and its contents against damage from fire, windstorms, vandalism, lightning, riots, and civil disturbances. Basic commercial property insurance also covers flood damage caused by overflowing rivers or streams.

This policy pays for lost profits if your business is closed because of a covered peril. It also pays for additional expenses if it takes longer than expected to reopen after an event like a flood or earthquake. BI policies typically limit how much they’ll pay out per claim or year.

If a covered peril damages your building, this Coverage pays for lost income from when you cannot operate until repairs are completed.

Business interruption coverage usually extends to employees who cannot work due to the disruption in operations caused by a covered loss.

#9. Business personal property

Business personal property covers items that aren’t permanently affixed to a structure but are necessary for your business operations. This includes computers, inventory, tools, equipment, and any furnishings you use in your office space or storefront.

This Covers things like business equipment and furniture against theft or damage from a fire or other perils. The value of this Coverage depends on how much the items cost when purchased. Also, Once any equipment depreciates, it will reflect in the premium amount charged for this benefit.

#10. Crime Insurance

This protects against losses from theft or vandalism committed on your property during an insured period (usually one year). In addition, the crime policy will pay for stolen items up to their fair market value as well as for any damage caused by fire or explosion during a break-in attempt or burglary (but not if those events occur during regular business hours).

#11. Renters’ insurance

Renters’ insurance. Suppose you rent space in a building where you conduct business. In that case, renters’ insurance can help protect you financially if someone is injured on your leased premises or if your personal property is stolen from your leased premises during a covered event such as a fire or flood.

#12. Medical Payments Coverage

If you don’t have health insurance covering medical expenses incurred by an injured person, then your state’s law may require medical payment coverage.

Conclusion

Commercial property insurance is a form of Coverage that protects the building and contents of a business from damage, loss, or theft.

Commercial property insurance protects you from losses associated with your commercial property.

Commercial property insurance is a type of insurance that covers the buildings and other structures that make up a business. It also covers the materials, equipment, and supplies on-site. A business owner needs commercial property insurance to protect against losses such as fire, theft, and vandalism.