Commercial Property Insurance

“Property insurance (for small businesses as well as large ones) can help protect business property and inventory (assets) against physical loss or damage by theft, accident or other means. Property coverage for small business insurance can cover your costs to repair or replace what you've lost and, in some cases, compensate you for items that are physically irreplaceable. Because every business is vulnerable to property damage or loss at any time, this insurance is one of the first things you should buy when you start a business.

Property coverage in small business insurance can be structured several ways, and the premiums you pay are based on many different factors of your business and the limits of coverage that you select.

If you don't own your building, you'll simply need contents coverage. In the most basic policies, property insurance for small business contents covers furniture, fixtures, inventory, office equipment and other supplies stored at your facility or off-premises. You may insure those items for replacement cost (which means you'll receive a settlement based on how much it will cost to replace the items at today's market prices) or for actual cash value (ACV), which pays only for the depreciated value of the property. While replacement cost small business insurance policies have higher premiums, they may help your business recover from a loss faster, since you can replace all of the lost or damaged property with new items. For this reason, most insurance professionals will recommend buying property coverage insurance for small businesses on a replacement value basis.

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.