Commercial Property Insurance

Protection for the property your business depends on

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Customized commercial property insurance that keeps your business running

Your business property is one of your most important assets. Protecting it from damage, theft, and unexpected setbacks is essential. Learn how commercial property insurance can safeguard your investment and support your business's long-term success.

Whether you own or lease a building, warehouse, storefront, or office space, Progressive Commercial can help you find insurance tailored to how you operate. Start a quote or connect with an agent to get protection that fits your property and your business.

What is commercial property insurance?

Commercial property insurance, sometimes referred to as business hazard insurance, helps protect your company location and the assets inside of it from risks like fire, theft, and vandalism. Covered items can include buildings, equipment, tools, and inventory you rent or own.

This coverage is included in a business owners policy (BOP), which packages property, liability, and other key protections for small businesses.

Why commercial property insurance is essential

Commercial property insurance is essential because it protects your business's financial stability when damage or loss occurs. A single fire, break-in, or weather-related event can create costly setbacks. This coverage provides the support you need to recover quickly and keep operations running.

Many landlords, lenders, and contracts also require proof of insurance in the form of a certificate of insurance (COI), making it an important part of securing leases, loans, and business agreements.

What does commercial property insurance cover?

Commercial property insurance protects your business's physical assets, including:

Buildings: Covers a building you own or rent if it's damaged by an event listed in your policy. This can include additions, permanently installed fixtures, and equipment.
Business personal property: Covers items such as inventory, supplies, computers, furniture, and tools, even if your business doesn't operate out of a commercial building.
Business interruption: Covers expenses and lost revenue if property damage disrupts your ability to operate.

Explore our BOP coverage guide for more information and get a quote to start protecting your business property today.

How insurance for commercial property works

Commercial property insurance coverage can be customized to fit your needs. When requesting a quote, list the property that's essential to your operations. You can add optional coverages, called endorsements, to extend your protection beyond what a standard BOP includes.

Some common commercial property endorsements are:

Tools and equipment: Covers tools and equipment belonging to contractors and their employees, as well as items rented from third parties.
Spoilage: Covers perishable goods in case of equipment failure, power outage, or contamination.
Equipment breakdown: Covers the repair and replacement of business equipment that fails due to a mechanical or electrical breakdown.

It's important to consider your business's needs and risks when choosing the right amount and type of property coverage on your BOP. For example, a bakery owner may want coverage for ovens, refrigerators, computers, and the building itself. They might also add a spoilage endorsement to protect their ingredients.

Evaluating your assets

When determining your commercial property coverage, start by evaluating your assets and inventorying your property. Be sure to consider signs, outdoor fixtures, attached structures, and replacement costs, as well as potential risks. Risks could include both industry-specific hazards and weather events typical of your location.

What commercial property insurance doesn't cover

Commercial property insurance doesn't cover all property-related incidents. It typically excludes claims involving:

Earthquakes, hurricanes, and floods: Most policies exclude these events. Speak to your insurance company to learn how to get coverage if you're located in an area that's prone to these types of natural disasters.
Commercial autos: Whether you have a fleet of cars or one delivery truck for conducting business, you'll need a commercial auto policy to cover accidents involving your work vehicles.
Employee injuries: Employers need workers' compensation insurance to help pay for medical expenses and other costs for employees injured on the job.

Our business insurance experts can help you explore coverage options to make sure you have the protection you need for your business.

Who needs commercial property insurance?

Most small businesses should consider commercial property coverage. Professions that commonly need it include:

If you own or rent your space, use expensive equipment, stock inventory, or rely on physical property to conduct business, commercial property insurance can help you recover from unplanned incidents and minimize financial losses.

Reduce property damage risks

Accidents happen, but you can take steps to protect your commercial property and employees from certain risks.

Installing cameras, security lights, and other safety features can help prevent commercial burglary. Additionally, maintaining extinguishers, smoke alarms, and sprinklers, as well as creating escape routes are key components of fire safety in the workplace.

How much does commercial property insurance cost?

The cost of commercial property insurance depends on specific features of your business, such as your profession, location, and the value of your assets. A business owners policy is a cost-effective way for small and medium-sized businesses to get liability and property protections.

Premiums vary based on the unique features of your business. For example, a company that rents an older warehouse will typically pay more than a business that rents a smaller, newer office building.

Learn more about commercial property insurance cost and find affordable rates for your business.

Common questions about commercial property insurance

Is commercial property insurance required for businesses?

No, commercial property insurance isn't usually required by law but having coverage may be a condition of a contract with landlords or mortgage lenders. Not having this type of protection can put your property and your business at risk.

Do I need commercial property insurance if I don't own my property?

Yes, having commercial property coverage is a good idea because it prevents financial setbacks to your business if your inventory, furniture, and other physical assets are damaged by weather, theft, vandalism, and other covered events. Without insurance, you would be responsible for paying for repairs and replacement costs out of your own pocket.

How is commercial property insurance different from a BOP?

Commercial property is a type of coverage that's included in a BOP and packaged with liability. The commercial property portion covers your assets from damage, while liability covers harm you cause to others.

Why choose Progressive Commercial for commercial property insurance

Progressive Commercial has been trusted by small businesses like yours for more than 50 years. We offer flexible options, competitive rates, and expert service. Start a quote and get the protection you need.