Coverage Guide — Updated August 2026
Commercial Property Insurance for Small Business
Commercial property insurance covers your business's physical assets — the building, business equipment, inventory, furniture, and tenant improvements — against losses from fire, theft, vandalism, wind, and other covered perils.
Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.
Commercial property insurance covers your business's physical assets — the building, equipment, inventory, furniture, and tenant improvements — against losses from fire, theft, vandalism, wind, and other covered perils. For businesses with any physical presence or significant owned assets, this is a core coverage.
What It Covers ✓
- ✓Building and structures you own or have insurable interest in
- ✓Business Personal Property (BPP) — equipment, inventory, furniture, signage
- ✓Tenant Improvements and Betterments
- ✓Business income/extra expense during restoration after a covered loss
- ✓Equipment breakdown (often available as an endorsement)
- ✓Outdoor property — signs, fences, satellite dishes (with sublimits)
- ✓Glass breakage and vandalism coverage
What It Does NOT Cover ✗
- ✗Flood damage (requires separate NFIP or private flood policy)
- ✗Earthquake damage (requires a separate endorsement or policy)
- ✗Normal wear and tear and gradual deterioration
- ✗Intentional damage by the insured
- ✗Land and foundations
Who Needs Commercial Property Insurance?
- →Any business owning or leasing a physical location
- →Retailers with significant inventory
- →Contractors with shops, storage yards, or offices
- →Restaurants with kitchen equipment and furnishings
- →Medical and dental practices with expensive equipment
- →Manufacturers with machinery and raw materials
- →Any business with assets worth protecting at a fixed location
How Much Does It Cost?
Small office / low-value BPP
$500–$1,200/yr
Retail store or restaurant
$800–$3,500/yr
Warehouse or light manufacturing
$2,000–$8,000/yr
High-value inventory or equipment
Varies by replacement cost
Key Terms to Know
Replacement Cost Value (RCV)
Pays to replace damaged property at current market prices without depreciation. The preferred form — prevents being underinsured after a major loss.
Actual Cash Value (ACV)
Pays replacement cost minus depreciation. Lower premium than RCV but creates underinsurance risk for older equipment and furnishings.
Coinsurance Clause
Requires you to insure property to at least 80% of its replacement value. Insuring below that threshold triggers a penalty at claim time — always insure to full replacement cost.
Business Interruption / Extra Expense
Pays lost income and extra operating costs during restoration after a covered property loss. Often the most underestimated — a 3-month closure can cost more than the property damage itself.
Ordinance or Law Coverage
Pays increased rebuild costs required to bring a damaged structure up to current building codes. Older buildings are particularly exposed — what's grandfathered today may need to meet modern code after a covered loss.
Get Commercial Property Insurance Today
Instant certificate. A+ AM Best rated. Online in 10 minutes.