What is Business Property Insurance?

Business Property Insurance is insurance coverage for the physical assets of a company. It protects against risks like fire, theft, vandalism, and natural disasters that could damage or destroy business property. This includes buildings, equipment, inventory, and other assets necessary to operate the business.


What does Business Property Insurance cover?

Property Insurance covers the costs of repairing or replacing business property after a covered loss. Specific coverage options include:

Building coverage: Covers the physical structure of business buildings and any permanent fixtures. It pays to repair or rebuild the building after a covered loss.

Business personal property coverage: Covers business equipment, furniture, computers, inventory, and other property. It pays to repair or replace covered property after a loss.

Business income coverage: Covers loss of income if a business cannot operate due to damage to its property. It pays for ongoing expenses and lost revenue during the period the business is closed or limited.

Extra expense coverage: Covers additional costs a business incurs to continue operations after a loss. For example, it could cover the costs of renting temporary business space if a company's building is damaged.

What type of coverage should I get for my Business's Property Insurance?

The type and amount of coverage depends on the specifics of your business and property. Some recommendations include:

  • Get replacement cost coverage so you can replace property at current prices, not the depreciated value. This is especially important for equipment and inventory.
  • Consider business income and extra expense coverage to protect against lost revenue from property damage. The amount of coverage you need depends on your monthly expenses and revenue.
  • Consider additional coverage for valuable property like computers or equipment. You may want to insure these items for more than the standard coverage limits.
  • Review your coverage limits annually and adjust as needed based on the current replacement costs of your property.

Why do I need Business Property Insurance coverage?

Business Property Insurance is critical to protect against potentially catastrophic losses from events outside your control. Some key reasons include providing financial protection if a fire, natural disaster, or other event damages or destroys your business property. It also helps ensure ongoing business operations. With coverage for business income loss and extra expenses, your company has a better chance of surviving a loss and resuming normal operations.

Find the right business property insurance for your needs.