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What is Commercial Property Insurance?

Commercial property insurance, sometimes referred to as business property insurance or business hazard insurance, helps protect a business from financial losses caused by damage to or destruction of their property. This can include damage to buildings, equipment, inventory, and other assets. Commercial property insurance can also help cover lost income and expenses if the business is unable to operate due to a covered loss. For businesses operating out of their home, also known as home-based businesses, commercial property insurance provides more coverage than what would normally be covered under homeowners insurance.

What Does Commercial Property Insurance Cover?

Commercial property insurance coverage can vary depending on the insurance provider, however most policies typically include coverage for the following:

  • Building, Equipment & Inventory Damage: Can help provide protection when damage to business property, equipment or inventory is caused by a covered event like fire, theft, vandalism, and weather damage.
  • Business interruption: Can help provide coverage for lost income and expenses that the business incurs if the property is damaged or destroyed and the business is unable to operate.

Who Needs Commercial Property Insurance?

All businesses should consider purchasing  property insurance, regardless of their size or industry. Even businesses with relatively few assets can be at risk of significant financial losses due to a property damage event. For example, a fire or flood could destroy a business’s entire inventory, leading to lost sales and revenue. Business property insurance can help to protect businesses from these types of financial losses.

How Much Does Commercial Property Insurance Cost?


The cost of commercial property insurance can vary based on a number of different factors.  Type of business, type of property being insured, size of business and other factors weigh into the commercial property insurance cost.
According to Insueron, a leading online insurance agency, commercial property insurance customers of theirs pay on average $63 per month[1].

Why Do You Need Commercial Property Insurance?

Commercial property insurance is an important coverage for small business owners to consider for their business.  This coverage helps protect:

  • Business assets: If your property is damaged or destroyed, you could lose a significant amount of money. Commercial property insurance can help to pay for the damages and protect your assets.
  • Avoid bankruptcy: If your property is damaged or destroyed and you do not have commercial property insurance, you could be forced to declare bankruptcy. This can have a devastating impact on your personal and financial life.
  • Comply with state and federal laws: with the law: In some states, businesses are required to have business property insurance in order to obtain or maintain a business license.
  • Business reputation: A damaged or destroyed property can damage your reputation and make it difficult to attract new customers and clients. Business property insurance can help to protect your reputation and your business.

Get a Commercial Property Insurance Quote

Commercial property insurance is an important type of insurance for businesses of all sizes. It is important to work with an insurance expert to make sure you get the right property insurance for your business. At BuyLiability.com, we’ve ranked the best business property insurance providers to help you find the best coverage for your Small Business.

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[1] https://www.insureon.com/small-business-insurance/commercial-property/cost#:~:text=What%20is%20the%20average%20cost,a%20median%20deductible%20of%20%241%2C000.

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