Commercial Property
Commercial property insurance
Cover for the building, stock, equipment and income your business runs on.
Commercial property insurance pays to repair or replace the physical things your business depends on after a fire, storm, theft or burst pipe. The part owners overlook is business interruption: the income you lose while the doors are shut is usually the larger loss.
Get early accessWhat it covers
A commercial property policy covers your building if you own it, and your contents either way — stock, furniture, tools, computers and the equipment you could not trade without.
Coverage responds to the causes of loss named in the policy: fire and smoke, water damage from plumbing, storm and hail, theft and vandalism. Flood and earthquake are usually separate additions rather than part of a base policy, which is worth confirming before you need them.
Business interruption
If a fire closes your premises for three months, the repair bill is only part of the loss. Rent, payroll and the revenue that stops arriving continue to matter, and business interruption cover replaces that lost income while you get back on your feet.
It is the coverage most often left out and most often regretted. When a claim is large enough to close a business, it is usually the interruption — not the damage — that decides whether it reopens.
How limits and valuation work
Contents are insured either at replacement cost — what it costs to buy new today — or actual cash value, which subtracts depreciation. Replacement cost is more expensive and is almost always the right answer for equipment you would have to replace immediately.
Set limits against what it would genuinely cost to rebuild and restock, not against what you originally paid. Under-insuring is the most common mistake, and a co-insurance clause can reduce a payout proportionally if your declared limit falls short.
Sample pricing
| Business profile | Example coverage | Sample monthly | Sample annual |
|---|---|---|---|
| Retail shop | $250k contents + $2M liability | $110/mo | $1,320/yr |
| Restaurant, 30 seats | Property + liability + interruption | $260/mo | $3,120/yr |
| Contractor, 2 crew | $2M general liability + $25k tools | $135/mo | $1,620/yr |
For illustration only — not a quote. Real premiums reflect your industry, annual revenue, claims history, and the limits and deductibles you set.
Frequently asked questions
Commercial property
Does commercial property insurance cover a rented space?
Yes. If you rent, the landlord insures the building and you insure what is inside it — stock, furniture, equipment and any improvements you paid to install. Those leasehold improvements are commonly missed, and replacing them is your cost, not the landlord’s.
What is business interruption coverage?
It replaces the income you lose while your premises are unusable after a covered loss, and keeps paying ongoing costs like rent and payroll. When a claim is severe enough to close a business permanently, it is usually the lost income rather than the physical damage that decides the outcome.
Replacement cost or actual cash value — which should I choose?
Replacement cost pays what it costs to buy the item new today; actual cash value subtracts depreciation first. Replacement cost costs more but is almost always right for equipment you would have to replace immediately, because a depreciated payout on a five-year-old machine rarely buys a working one.
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