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Commercial Property Insurance Quote

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Insurance Ranked

- Updated April 11, 2023

Commercial Property Insurance Quote

Nothing is certain in today’s business world other than your company's fortunes can change at a moment’s notice. A claim of negligence can bring down the most financially-secure company, especially if the company is not adequately insured. Commercial property insurance is just one way you protect your company against costly claims and litigation, covering costs that could drain your company dry.

Do you know what commercial property insurance covers? Do you know what it does not cover? Do you know how much it costs? How can you get a commercial property insurance quote?

This article addresses these questions and more so you can learn all you need to know about commercial property insurance.

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What is Commercial Property Insurance?

Also known as "business property insurance," commercial property insurance is a type of business insurance covers your company's physical assets from unforeseen and destructive events. This type of coverage can cover your company's physical location, office equipment, inventory, furniture, and any other materials your company or LLC uses for normal business. Destructive events covered under this coverage typically include fires, wind, lightning, theft, and vandalism. Your policy will tell you exactly what is covered.

Why Do I Need Commercial Property Insurance?

You need commercial property insurance to protect your company against financial losses that could occur if it sustains damage to any of its property. Additionally, you might need commercial property insurance to help your company fulfill contractual commitments and to provide peace of mind to your company's employees.

You need commercial property insurance to protect against financial losses

If you do not possess commercial property insurance and your company experiences a fire, windstorm, vandalism, or any other event that damages property, then you will have to pay out-of-pocket to repair and replace damaged items. Owning insurance can soften the financial burdens of fixing and replacing equipment and inventory your business needs to continue operating.

You need commercial property insurance to meet contract requirements

Contracts help minimize the risks of doing business with other entities. They can ensure companies can run smoothly while enjoying legal protections. Some contracts might require business parties to own commercial property insurance in case one of the parties suffers a loss that jeopardizes the contract's goal. Proper coverage could ensure both sides of the contract fulfill their responsibilities.

You need commercial property insurance to provide peace of mind

Owning and operating a company can be seen as dealing with a series of possibilities. What if my company sustains a fire or earthquake? What if I lose my inventory? How can I continue running my business without a physical structure or any equipment? Commercial property insurance can address each of these possibilities, giving you and your employee's the peace of mind to keep working without worries.

What Does Commercial Property Insurance Cover?

Commercial property insurance covers your company's physical assets:

  • Building
  • Equipment
  • Furniture
  • Inventory
  • Personal property
  • Tools

What Does Commercial Property Insurance Not Cover?

Commercial property insurance typically does not cover:

  • Customers damaging their own property on your company's premises.
  • Intentional property damage.
  • Vehicle damage.
  • Your employee's negligence that causes property damage outside of your company's premises.

What is the Difference Between Commercial Property Insurance and Personal Property Insurance?

Commercial property insurance differs from personal property insurance or homeowners insurance, which often covers little to no business property. Even if you operate your company out of your home, homeowners insurance will not protect your company's technology, equipment, or files. If you have a home-based business, then you probably will need commercial property insurance and homeowners insurance to be thoroughly protected.

Do I Need Commercial Property Insurance If I’m an LLC?

If your business is an LLC, then you can only protect your personal property from lawsuits. Being an LLC separates your company's assets from your personal ones. Therefore, you should obtain commercial property insurance to protect your company's assets.

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How Much Does Commercial Property Insurance Cost?

All companies have different risks due to the nature of their industries. Your commercial property insurance costs depend on your risks and more. For example, your rates are dictated by the level of protection you want, the type of work your company does, your company's size, the number and condition of your facilities (if applicable), and your risk management practices. As with all things related to insurance, you should contact an insurance agent or broker to discuss how much a commercial property insurance policy is.

How Can I Lower My Commercial Property Insurance Rates?

The price of doing business can be quite steep. Fortunately, there are a few ways you can save money by lowering your commercial property rates.

Get multiple quotes

Settling for the first insurance provider you come across could cost you more money had you researched your options. Some providers cost more than others while offering fewer protections. Getting quotes from multiple providers can help you choose the right coverage at an affordable price.

Look for discounts

Some insurance providers might offer discounts to attract customers. Some of these cost savings include paid-in-full, multi-policy, and prior insurance discounts. You can also ask prospective insurance providers if they bundle commercial property insurance in a Business Owner’s Policy (BOP). A BOP usually combines commercial property and business liability insurance into one cheaper and customer-friendly policy.

Choose how and when you can pay

Some insurance providers might offer you discounts if you pay your rates in particular ways. An Electronic Funds Transfer (EFT) option is a popular alternative. Providers might also allow you to pay your premiums early, giving you another discount.

Know your financial limits

You must know how much money you can spend on commercial property insurance. How can you pay for a policy if you do not have any money budgeted for this reason? Knowing your financial limits is vital in helping you determine when choosing an insurance provider.

How Do I Get Commercial Property Insurance Quotes?

The easiest way to get commercial property insurance quotes is to go online and search for insurance providers. Many allow you to contact them via email. You could even call the ones that interest you. You can also contact insurance agents and brokers for more information. Again, you can find them online.

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How Can I Choose the Best Commercial Property Insurance?

If you have several commercial property quotes, then you must now make an important decision. You have to choose an insurance provider. You can simplify this difficult decision when you follow these tips:

Choose the coverage that best meets your needs and budget

You should ideally choose the coverage that you can afford. Although you should not skimp on coverage, you should try to align policies with what you need covered the most.

Pick a financially stable insurance provider

Your insurance provider should be able to pay out in the event of a claim. Their financial standing should be firm so you can get prompt and sufficient reimbursement. You should avoid providers who have histories of not being able to pay their debts. You can search insurance providers' financial statuses on the A.M. Best Company's website, which has been a trusted resource for many years.

Read reviews

Customer reviews are the lifeblood of many companies, including yours. Reading a range of positive and negative reviews can better inform your final decision. They can tell you how providers treat their customers, which can influence your choice.

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Get Your Commercial Property Insurance Quote Today

If you own your company or are in charge of its insurance, then you should know what type of coverage will adequately cover your business. Knowledge can grant you power over your company's fate. When you obtain plenty of information, you and your company can be in a better position to purchase the proper coverage.

Commercial property insurance can help cover risks that could disrupt your operations. Discovering all of your coverage options can help you save your company money and keep it operating for a long time. The key is having information at your disposal.

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Commercial Property Insurance Quotes FAQ

How can I find out if I have commercial property insurance?

There are two ways you can find out if you have commercial property insurance. If you have a policy, then you should read it to see what type of coverage you have. You can also contact your insurance provider and ask them.

Other than a policy, is there another way I can prove I have commercial property insurance?

Many insurance providers give their policyholders certificates of insurance (COI) as proof of insurance. Some allow policyholders to sign into their online accounts and download and print COIs. Contact your provider to find out if they offer this service.

What is the average commercial property insurance deductible?

In most cases, you will choose your deductible amount when you first purchase a commercial property insurance policy. Therefore, you should refer to your policy or contact your insurance provider.

If I choose a higher deductible, will it lower my commercial property insurance cost?

Sometimes picking a higher deductible can result in lower commercial property insurance costs. You should discuss this with your insurance provider to find out for sure.

Can I bundle my commercial property insurance with other policies?

As previously mentioned, commercial property insurance is a major component of many BOPs. If you are interested in one, then talk to your insurance provider to get an affordable bundle.

What policies can I bundle with my commercial property insurance?

You might be able to bundle your commercial property insurance with the following:

  • Commercial crime insurance: covers losses stemming from theft, forgery, and other dishonest acts.
  • Data breach insurance: covers expenses associated with a cyberattack.
  • Equipment breakdown insurance: Covers the repair costs to fix the broken equipment your company's employees normally use.
  • General liability insurance: covers claims of bodily injury, property damage, libel, and slander.
  • Product liability insurance: covers claims of injuries and property damage that come from the products your company makes, sells, and/or distributes.
  • Professional liability insurance: covers losses originating from professional errors.
  • Workers’ compensation insurance: covers your employees if they become injured or ill while working for your company.

Is commercial property insurance tax deductible?

Your commercial property insurance premiums are usually considered to be business expenses. As such, business expenses can be written off your taxes. If you are unsure, you should contact a tax attorney or accountant. They can quickly tell you what you can and can not deduct.

Do I need commercial property insurance if my company does not have physical premises or equipment?

There are three common instances when you probably do not need commercial property insurance:

  • when your company is a sole proprietorship or partnership and has no physical premises or equipment.
  • when your company is a corporation or LLC and has no physical premises or equipment.
  • when your company operates completely online and does not have any physical premises or equipment.

Is commercial property insurance required by law?

Commercial property insurance might not be required by law. However, any business relationships you have might require it. Plus, your lender might need you to carry a policy.


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