Commercial Property Insurance protects your business’s physical assets—like buildings, furniture, and inventory—against fire, theft, and other hazards. Essential for brick-and-mortar operations and property owners.
Property Insurance
What Is Property Insurance?
Commercial property insurance protects a business’s physical assets—like buildings, equipment, inventory, and furniture—against damage or loss from events such as fire, theft, vandalism, or certain natural disasters. It helps cover the cost to repair or replace damaged property so the business can recover quickly. This coverage is essential for any business that owns or leases physical space or valuable assets.
Who Needs Property Insurance?
Whether you own or lease, property is a major investment. A fire, storm, or break-in could derail operations and result in unrecoverable losses. Property Insurance helps you repair, rebuild, or replace assets quickly so you can get back to business.
Common industries that often require Commercial Property Insurance include:
- Building owners and commercial landlords
- Tenants with valuable inventory or equipment
- Retail stores, restaurants, warehouses
- Offices with expensive buildouts
- Manufacturers and logistics businesses
What Does Property Insurance Cover?
Commercial Property Insurance typically covers:
- Buildings and structures
- Business personal property (furniture, inventory, fixtures)
- Equipment and machinery
- Interior improvements
- Loss due to fire, lightning, theft, windstorm, explosion, and more
What Doesn’t Property Insurance Cover?
While Commercial Property Insurance offers broad protection, it doesn’t cover:
- Earthquakes or floods (requires separate coverage)
- Wear and tear or maintenance issues
- Employee theft (requires Crime Insurance)
- Utility failure unless caused by a covered peril
- Loss of income (covered under Business Interruption)
How Much Does Property Insurance Cost?
The cost of Commercial Property Insurance varies based on factors like business size, industry, location, and claims history.
Key Cost Factors:
- Location
- Construction type
- Square footage
- Occupancy
- Fire Protection Systems
- Security Setup
- Coverage Amounts and Deductible Levels
Typical Cost Range:
- Retail: $750–$2,500/year
- Small Office: $750–$2,500/year
- Small Residential: $750–$2,500/year
- Mid-sized Residential: $5,000–$25,000/year
- Mid-sized Commercial: $5,000–$25,000/year
- Mid-sized Industrial: $5,000–$25,000/year
- High-value portfolios: $30,000–$100,000+/year
Risk Management Tips
To minimize potential claims:
- Install monitored security and fire alarm systems with automatic alerts.
- Perform regular maintenance on HVAC, electrical, and fire suppression systems.
- Store flammable or hazardous materials per code and away from high-value areas.
- Keep accurate and updated inventories of insured property with photos and receipts.
- Review lease agreements to understand insurable interest and shared responsibilities.
- Conduct annual risk audits to identify vulnerabilities or unprotected assets.
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.