COMMERCIAL PROPERTY INSURANCE

Commercial property insurance protects the tangible assets that keep your business operating — from your building to equipment, inventory, and specialized property. Coverage can be structured to reflect how your business functions and where your exposures exist

Building Coverage covers the structure itself and items permanently attached to it, including:

• Additions, fixtures, and permanent machinery

• Equipment and supplies used to maintain the building

• Systems such as HVAC, plumbing, and electrical

• Property used to service the premises (e.g., fire extinguishers, maintenance equipment)

Business Personal Property covers the contents of your business, including:

• Furniture, equipment, and inventory

• Tenant Improvements and Betterments

• Property within 100 feet of the insured premises

Coverage may be blanket or scheduled, depending on the type and value of property.

Vacancy Considerations: Commercial property policies contain specific vacancy provisions. Most policies define a building as vacant if less than approximately 30% of its total square footage is actively used for customary business operations. If a building meets that definition for a specified period of time (commonly 60 consecutive days), coverage may be restricted, or certain causes of loss may be excluded. A vacancy can significantly impact how a claim is handled. If a building is unoccupied, under renovation, or transitioning between tenants, coverage should be reviewed to ensure appropriate protection remains in place.

Personal Property of Others (Optional): If your business holds property belonging to customers or clients, this coverage can:

• Insure items in your care, custody, or control

• Pay the property owner in the event of a covered loss

Business Interruption Coverage

Property damage isn’t the only risk. Lost income during rebuilding can be just as damaging.Business Interruption coverage can include:

• Business Income – Replaces lost income during temporary closure

• Extra Expense – Covers additional costs to continue operations (e.g., temporary relocation)

Equipment Breakdown (Boiler & Machinery): Also known as Equipment Breakdown Insurance, this coverage protects against sudden and accidental mechanical or electrical failure. It can help cover:

• Repair or replacement of damaged equipment

• Business income loss due to breakdown

• Certain liability exposures resulting from covered events

It does not cover wear and tear or failure due to lack of maintenance.

Flood Insurance: Flood damage is typically excluded from standard property policies.Flood coverage:

• Is available through separate policies

• May include tidal surge, mudflow, or shoreline collapse

• Often has a 30-day waiting period before coverage begins

Availability and limits depend on location and flood zone classification.

Earthquake & Volcanic Eruption: Earth movement is also excluded from standard property coverage. A separate endorsement or policy can provide coverage for:

• Earthquakes and aftershocks (typically grouped within a defined time period)

• Volcanic eruption-related ground movement

Deductibles are often percentage-based and applied on a per-event basis.

Marine Insurance (Ocean & Inland) “Marine” insurance extends beyond ocean shipping. These specialized policies — often called floaters — cover property in transit or high-risk movable assets.

Ocean Marine

• Hull coverage (vessels and equipment)

• Cargo coverage (goods in transit)

• Freight coverage

• Protection & Indemnity for vessel owners

Inland Marine Covers property in transit over land or specialized movable property, including:

• Contractor’s equipment

• Installation projects

• Bailee’s customer property

• Exhibition property

• Medical and specialty equipment

• Jeweler’s stock and sales samples

• Electronic data processing equipment

Why This MattersProperty insurance isn’t just about the building — it’s about maintaining operational continuity. Understanding what is covered, what is excluded, and where additional endorsements are needed is essential to building a coverage structure that actually protects your business.

Each policy will have stipulations, limits, and exclusions. Extensions, riders, and floaters are available to fill any gaps. The information on this website is an overview of the types of insurance you may be able to purchase, but does not comprise full explanations of policy types nor does it guarantee any particular coverage or policy.