Commercial Property Insurance

Why having Commercial Property Insurance is Important

Commercial Property Insurance protects the physical assets your business depends on. This includes buildings you own, equipment, inventory, signage, and even landscaping in some cases. If a covered peril such as fire, theft, vandalism, or certain weather events damages your property, this policy helps pay for repairs or replacements.

There are two common valuation methods: Replacement Cost (RC), which pays to repair or replace damaged property without deduction for depreciation, and Actual Cash Value (ACV), which does account for depreciation. Choosing between RC and ACV significantly affects premium costs and claims payouts.

Business owners should ensure they have an accurate property valuation and regularly review their coverage limits. In addition to standard property coverage, endorsements such as equipment breakdown or inland marine can extend protection for assets in transit or offsite. Property insurance is essential for businesses with physical locations or valuable inventory.