What Is Commercial Property Insurance? (2024)

FAQs

What Is Commercial Property Insurance? ›

Commercial P&C insurance refers to insurance policies that protect businesses from losses tied to their properties and operations. It covers damage to buildings, equipment, and inventory, and also covers liability claims from third parties.

Commercial property insurance definition

Commercial property insurance protects your company's physical assets from fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods typically aren't covered by commercial property insurance, unless those perils are added to the policy.

Introduction to Commercial Insurance

Commercial insurance can protect you from some of the most common losses experienced by business owners such as property damage, business interruption, theft, liability, and worker injury.

Property insurance refers to a series of policies that offer either property protection or liability coverage. Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies.

Commercial property insurance generally does not cover the following, which may be covered with separate insurance policies or additional coverage endorsem*nts: Business vehicles. Employee theft. Employee injury or illness.

Different types of commercial insurance products include general liability insurance, professional liability, property insurance, and home-based business insurance. Product liability, vehicle insurance, and business interruption insurance are also types of commercial insurance.

Commercial health insurance, also called private health insurance, is coverage issued by a private company or entity. It is not from government-issued insurance like Medicare or Medicaid. Commercial health insurance companies include: Aetna.

Commercial generally relates to anything business or commerce. A commercial is an advertisem*nt for a business. Commercial activity is selling goods or services for profit. There's also commercial trading in the forward and futures markets, generally done for hedging purposes.

This insurance essentially provides the same kind of protection as property insurance for consumers. However, businesses can usually deduct the cost of commercial property insurance premiums as expenses. Commercial property insurance generally does not cover losses arising from tenants using the building.

General liability insurance is also known as commercial general liability insurance or business liability insurance.

What is the main purpose of property insurance? ›

Homeowner's insurance pays for losses and damage to your property if something unexpected happens, like a fire or burglary. When you have a mortgage, your lender wants to make sure your property is protected by insurance. That's why lenders generally require proof that you have homeowner's insurance.

Homeowners insurance is important because it protects consumers' homes and personal property. In the event of a total loss, insurance can provide the primary source of rebuilding funds. It also provides liability coverage for legal actions from injuries or damage from another person on their property.

What is Property Owners' Liability? The Property Owners' Liability Insurance protects landlords and property owners in respect of claims made against them in respect of their legal liability for personal injury or property damage suffered by third parties and arising from the policyholder's ownership of the property.

Most commercial property policies include a flat (or straight) deductible. A flat deductible is a specified dollar amount that applies to each loss. It is subtracted from the amount of a covered loss, and the amount remaining is paid by the insurer.

Common policy conditions are the part of the insurance policy typically relating to cancellation, changes in coverage, audits, inspections, premiums, and assignment of the policy.

Common types of Named Insureds

A named insured can be an individual/sole proprietor, a partnership or LLP, a corporation, or an LLC. There are other possible entity types, but we will not typically see those in the small business sector.

Commercial insurance policies are often more complex than residential policies, as they are tailored to the specific needs of each business. If you have commercial insurance, you have the right to hire an attorney to assist you with any claims you need to file.

Property insurance: protects against loss or damage to tangible property, such as a building or its contents. It typically covers damage caused by fire, theft, and natural disasters. Liability insurance: protects against financial loss from legal claims made against the policyholder.

The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.