Protect your business property with commercial property insurance.
Commercial property insurance can protect your business against everything from a minor hiccup to a major loss.
- A fire could destroy your building and the contents inside
- A burst water pipe could damage valuable documents
- A storm could damage your outdoor sign
Whether you own your freestanding building, lease an office or work at home, business property insurance protects your business' physical assets.
What's covered by commercial property insurance
Commercial property insurance helps ensure the future of your business. It helps protect:
- Your building
- Your outdoor sign
- Your furniture and equipment
- Your inventory
- Your fence and landscaping
- Others' property
What you need to know about business property insurance
Commercial property insurance plans vary from policy to policy. A complete business property insurance plan is one of the smartest investments you can make in your business. It protects the costly, physical assets of your company such as the building, its contents and any outdoor fixtures such as signs and fencing.
Savvy business owners know that a fire or severe windstorm can shut down a business for an extended period of time, often leading to a permanent closure. But with a comprehensive business property insurance plan, you’ve got support and business income coverage to help you recover quickly.
Determining the value of your business property
Commercial property insurance plans pay for losses based on the replacement cost of the item or its actual cash value.
Replacement cost (RC) refers to the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality without deducting any amount for depreciation.
Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, less depreciation.
Typically, the premiums for policies covering property insured on an ACV basis are lower because a lower limit is used due to the deduction for depreciation. This amount might not be enough if you elect to insure the property on a RC basis.
Your insurance agent can work with you to make sure you have your property adequately insured.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.