What Commercial Property Insurance Covers

If you own or lease a building for your business, protecting that property is essential. A solid commercial property insurance policy helps you recover quickly when disaster strikes — whether it’s fire, theft, or storm damage. So, what exactly does it cover?

Let’s break it down.

What Is Commercial Property Insurance?

Commercial property insurance protects your business’s physical assets — the building, equipment, and everything in between — from damage or loss. Whether you own your space, lease it, or work from home, this coverage helps you stay operational in the event of unexpected events.

What Does It Typically Cover?

1. Your Building or Structure

Covers the physical structure — including walls, roof, flooring, and built-in fixtures — from risks such as fire, wind, or vandalism.

2. Business Personal Property

Protects the contents of your building, including furniture, inventory, tools, computers, and supplies.

3. Outdoor Signs and Fencing

Includes detached signage, fencing, and even landscaping features that enhance your curb appeal.

4. Equipment Breakdown

An optional add-on that covers sudden mechanical or electrical breakdowns of key systems like HVAC or manufacturing equipment.

5. Loss of Income

Business interruption coverage helps replace lost income and pay bills if property damage forces you to close temporarily.

6. Improvements and Betterments

Covers upgrades you’ve made to a leased space, like lighting, custom counters, or partitions.

What’s Not Covered?

Know what your policy doesn’t include:

• Flood or Earthquake Damage – Requires separate policies.
• Intentional Acts or Gross Negligence – Not covered if damage was deliberate or due to extreme carelessness.
• Employee Theft or Fraud – Typically covered under a crime policy.
• Wear and Tear – Normal aging, rust, or lack of upkeep isn’t included.
• Pest Damage – Rodents and insects fall outside of coverage.
• General Liability Claims – You’ll need commercial liability insurance for injuries or third-party property damage.
• Cyberattacks – Covered under separate cyber liability policies.
• Utility Interruptions – Not covered unless directly caused by insured damage.
• Nuclear or Radiation Hazards – Excluded from standard policies.
• Environmental Contamination – Mold, pollution, or hazardous cleanup requires special coverage.
• Inventory or Accounting Errors – Must show physical loss to be covered.
• Business Vehicles – Covered under a commercial auto policy, not property insurance.

Let’s Keep Your Business Safe

Whether you’re growing, renovating, or reassessing coverage, we’re ready to help. Call Klinger Insurance Group at 301-428-4935 to customize your commercial property insurance and protect what matters most.

Stay protected. Stay confident. Keep growing.