The "Ins and Outs" of Commercial Property Insurance

Commercial property insurance covers buildings, structures, their contents, and personal property under a business’s care, custody, or control. It provides financial assistance for repairs or replacements if property is damaged, destroyed, or stolen.

Policies are available as “open perils” or “named perils.” Open perils policies cover all risks except those specifically excluded, while named perils policies only cover perils explicitly listed in the contract. Common named perils include:

• Fire
• Wind
• Lightning
• Vandalism
• Explosions
• Falling objects
• Theft
• Smoke

‍Commercial Property Policies generally cover:

• Buildings and Structures – Includes finished additions, fixtures, and permanently installed machinery.
• Business Personal Property – Furniture, fixtures, machinery, stock, and leased items within 100 feet of the premises.
• Personal Property of Others – Property in the insured’s care, custody or control within 100 feet of the building. Under this coverage, payment for the loss or damage to others’ personal property is provided to the owner of the property.

‍Property Not Covered

Businesses must be aware of the types of property that do not qualify for coverage under a commercial property insurance policy. These include:

• Money, notes and securities
• Accounts, bills, currency, food stamps or other evidences of debt
• Animals not held for sale or boarded by the insured
• Automobiles held for sale
• Bridges and roadways
• Walks, patios or other paved surfaces
• Aircraft, watercraft, and other vehicles or self-propelled machines (with certain exceptions) and personal property that is airborne or waterborne
• Land, water, crops and lawns (unless the lawn is part of a vegetated roof)
• Excavations, grading, filling or backfilling costs
• Retaining walls that are not part of a building
• Bulkheads, pilings, piers, docks or wharves
• Foundations below the lowest basement floor or underground
• Property more specifically insured elsewhere except for the excess of the amount due from the other insurance
• Below-ground pipes, drains and flues
• Electronic data (with certain exceptions)
• The replacement costs of valuable papers and records (with certain exceptions)
• Fences, radio and television antennas and their lead-in wiring, trees, shrubs and plants outside of buildings (with certain exceptions)
• Contraband or property in the course of illegal transportation or trade

To Conclude

Commercial property insurance provides valuable financial protection. Each business has unique needs, and a licensed Concierge Insurance Professional can assist a company in securing an insurance portfolio that provides the coverages most appropriate for the business.