Commercial Property Insurance
Commercial property covers physical loss to what your business owns or is responsible for — the building if you own it, your equipment and inventory, and the build-out you paid for in a space you lease.
Tenant Improvements Are the Gap
If you paid for the build-out in a leased space, your landlord's policy doesn't cover it. That's yours to insure, and it's routinely left off a first policy.
Replacement Cost Versus Actual Cash Value
Replacement cost pays to replace what was lost. Actual cash value pays depreciated value. The difference doesn't show up until a claim, and by then it's settled.
Business Interruption
Income while you're closed after a covered loss.
What It Doesn't Do
Standard property policies generally exclude flood and earthquake, which are written separately. Property in transit or off premises is inland marine. Buildings under construction are builder's risk.
Questions People Ask
Does my landlord's insurance cover my equipment?
No. The landlord insures the building. Your equipment, inventory, and the improvements you paid for are yours to insure.
Is flood covered by commercial property insurance?
Typically not. Flood is generally excluded and written as separate coverage.