Commercial Property Insurance

Commercial property policies cover loss or loss of use of any type of property, particularly buildings, equipment, and contents. Commercial property policies typically include coverage for business income or loss of use. You can cover special types of property, such as valuable papers, computers and electronic media, money and securities, agricultural equipment, livestock, works of art, and more, under the same commercial property policy that covers your building and contents, or in separate policies, depending on the situation.

Fire is usually the most costly peril to insure, though windstorm damage rates can be high in certain geographical areas. Policies may cover named perils only (including fire and windstorm and theft) or “all risks.” “All risk” policies cover all perils except those specifically excluded, such as earthquakes and floods. You can cover these perils separately, or, for large commercial risks and property schedules, in a Difference in Conditions (DIC) policy. If you have a large portfolio of properties, coverage may be written on a blanket basis, providing a single limit for all properties. This has the advantage of minimizing any coinsurance problems, as well as simplifying administration and sometimes lowering costs, depending on the probable maximum loss you and the insurer agree upon for the blanket limit.