Property insurance – What types do businesses need?

Property insurance for businesses

Business property insurance is an important type of commercial business insurance, as it covers losses of any buildings owned or leased by a company, as well as the contents of those buildings (such as furniture, supplies, machinery, computers and other equipment, or records and valuable documents).

In the event that a building or its contents are lost or damaged, the insurance company will pay the business for those losses. Most property insurance policies cover events like a fire or storm, but not damage caused by flood, earthquakes, or terrorism. Special coverage is available to cover those risks.

Flood damage is especially important to consider if a property is located in a flood zone. Businesses can get more information about flood insurance, and special government programs, through The National Flood Insurance Program. Coverage for earthquake damage is excluded from most business property insurance quotes and policies. Businesses located in earthquake prone areas need a special insurance policy or a commercial property earthquake endorsement added to their existing commercial business insurance policy.

Crime insurance is another type of property insurance businesses should consider. Commercial property policies typically do not cover the loss of money or securities, or theft of any types of property. Crime insurance policies cover these losses.

Business property insurance is a standard type of insurance for most businesses. For small or medium sized businesses, it often comes as part of a Businessowners Policy, which is a package of property and liability coverage.