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What is Business Property Insurance?

Business Property Insurance, also referred to as Commercial Property Insurance and Business Personal Property Insurance, as the name implies, covers the physical location, equipment and contents your business owns.

Types of Property Covered

What Events are Covered?

Physical Structures

Cover the buildings and/or physical structure(s) your business owns. For example, your office building, warehouse or retail space.

Fire, Wind, Lightening and Hail

Provides coverage for property your business owns if damaged by one of these events and more. Most policies offer the option to include all causes of loss with a few exceptions.

Tools, Equipment, Furniture and Computers

Cover the tools and equipment you use to operate your business as well as the furniture, computers and contents of your location.

Theft and Vandalism

Repair or replace your property if it is stolen or damaged by theft or vandalism.


Cover the inventory you store at your office or warehouse.

Lost Income

If you cannot operated your business due to covered property damage, lost income will help provide financial compensation while your operations are being restored.

*Typically an optional coverage

Keep in Mind

  • Home based businesses often assume their homeowners policies will cover their business interests. Homeowners policies may extend some coverage for business assets it is not a guarantee and most will not cover business property if it is stored at another location.
  • Landlords will typically require tenants to carry property coverage in their lease terms. Many assume that a the landlord’s insurance will cover their property if it is damaged by say, a fire. Unfortunately this is not the case which is why making sure your assets are covered under your own policy.
  • Property insurance doesn’t cover everything. Here are a few scenarios to be aware of:
    • Property that is mobile or in transit may be excluded, but there are other ways to cover it.
    • Customer property that is damaged while in your care is typically covered on your liability policy, not a property one.
    • Equipment that breaks down is typically an optional coverage.