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Key Takeaways

The average cost of commercial property insurance is $140 a month, or about $1,670 annually, from The Hartford.**
Offers more protection than a homeowner's insurance policy. Commercial property insurance provides more comprehensive protection for people with a home-based business.
Commercial property insurance also includes business interruption insurance, which can help replace lost income if you can't operate your business because of a covered loss.

Get Commercial Property Insurance

“What is commercial property insurance?” We hear this question a lot from small business owners wanting to know if they need to have it. If your business owns or rents any property or you work out of your home, you’ll need commercial property insurance to protect your building and the contents inside of it.

What Is Commercial Building Insurance?

Commercial building insurance, also called commercial property insurance, helps protect your business’ owned or rented building, plus the tools and equipment inside. It can also cover your lost income if you must close temporarily due to a covered loss.

It’s a good idea to have commercial property insurance if you’re a home-based business owner too. A typical homeowner’s insurance policy won’t cover your business property and physical assets.

What Does Commercial Property Insurance Cover?

Commercial property insurance helps protect your company’s physical assets, such as your:

Building

Your owned or rented building that you use for business is protected from covered losses like fire, burglary and accidents.

Equipment

Your owned or rented equipment, like computers or machinery, used to operate your business are covered.

Tools

If your company keeps tools and equipment inside your owned or rented property, commercial property insurance can help repair or replace them if they’re damaged or stolen because of a covered loss.

Inventory

If you store inventory at your commercial property or home office, this type of insurance can help replace it if it’s damaged or stolen from a covered loss.

Furniture

Commercial property insurance covers your company’s furniture. If it’s damaged or destroyed in a fire or other covered accident, your insurance can help repair or replace it.

Personal Property

Business property insurance helps protect your personal property, like cars and computers, if they’re located in your business when a covered loss occurs.

Commercial property insurance also includes business income insurance coverage, which can help replace lost income if your business can’t operate because of covered property damage.

There’s different types of commercial property insurance available to business owners if you need to expand your coverage. Our specialists can help you find customized coverage to meet your business’ unique needs.

What Is Not Covered by Commercial Property Insurance?

It’s important to keep in mind that commercial property insurance doesn’t cover every type of property damage that might come up unexpectedly. This type of insurance doesn’t cover the following events:

You or your employees intentionally damage property
Your customer drops their laptop when they trip over a box in your office
You get into an accident while making a delivery to a customer and damage your vehicle
A nearby brook overflows after a heavy rainfall, causing flooding near your building that damages your inventory
One of your employees puts a hole in your client’s wall

You can get other types of business insurance to protect your business from these types of unexpected claims. Get a quote for business insurance today and find out how you can fully protect your business from risk.

Who Needs Commercial Property Insurance?

If your business owns, rents or leases a physical location or you operate out of your home, you’ll need commercial property insurance. In addition, if your business owns important equipment, tools or inventory that is stored at your business’s physical location, commercial property is the best way to protect your physical assets from property damage.

Common Questions About Commercial Property Insurance

What Is a Commercial Property Policy in Insurance?

A commercial property insurance protects your owned or leased business property and equipment against covered losses like property damage, theft or burglary.

What Is an Example of Commercial Property?

Buildings or spaces that your business owns, rents or leases are examples of commercial property. In addition, the tools, equipment, inventory, furniture and personal property you use to operate your business are considered commercial property.

Are Temporary Locations Covered in a Commercial Property Insurance Policy?

Yes, if your business temporarily rents a building or physical location, you can get coverage through a commercial property insurance policy.

What Is the Difference Between Commercial and Property Insurance?

If you have a home-based business, you will likely need more coverage than just your homeowner’s insurance policy. A typical homeowner’s insurance policy doesn’t protect your business’ technology, equipment, files or inventory. Your home policy also won’t protect your business property if it’s stored in a different location. Commercial property insurance, also known as commercial building insurance, will ensure you have enough coverage for your company’s physical assets.

What Happens If I Change Locations or Expand?

If you change locations or expand your business, you’ll need to notify your insurer to make sure you’re fully covered. If you need to make updates to your policy or questions about commercial property insurance, call one of our specialists at 800-327-3638.

What Does Building Insurance Cover?

Building insurance is another term for commercial property insurance, but it’s the same coverage. Like commercial property insurance, building insurance helps protect your business’ owned or leased building, equipment, tools, inventory, furniture and personal property.

Types of Commercial Property Insurance

How Much Does Commercial Property Insurance Cost?

Commercial Property Insurance FAQs

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.

What Is Commercial Property Insurance?