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Do I Need Commercial Property Insurance for My Small Business?

When you own a business, every penny you spend or save can make a difference. Since most businesses either own or lease commercial property, any losses could be costly and inconvenient. Here’s why your business should carry commercial property insurance, what it covers, and some of the things it won’t protect against. 

What is Commercial Property Insurance?

Commercial property insurance is a type of business insurance that protects your business from many perils associated with property ownership or rental. Property, in this case, refers to physical assets, such as buildings, equipment, inventory, and stock. 

For many small to medium-sized businesses, the loss or damage of assets can come as a financial blow. If your building becomes damaged or your inventory were destroyed, would you be able to continue to operate, make payroll, or achieve your goals? 

What Does Commercial Property Insurance Cover?

Commercial property insurance covers your business’s physical property and its contents. It helps pay for the replacement or repair of that property if it is destroyed, damaged, or lost. A commercial property insurance policy will usually cover the following:

  • Business-owned buildings
  • Furniture and fixtures
  • Supplies and Equipment
  • Inventory

Your policy will cover losses due to unexpected events such as fire, break-ins, vandalism, and other types of damage. 

What It Doesn’t Cover

It’s important that you understand what commercial property insurance covers as well as what it doesn’t. Sometimes, an insurance policy will exclude coverage for certain perils, such as vehicle damage, because there are other policies that provide the necessary coverage. Some of the things this type of insurance doesn’t cover include:

  • Damage to vehicles
  • Flood and earthquake damage
  • Losses in transit
  • Cybercrime and computer fraud
  • Income loss
  • Losses due to employee dishonesty

How Commercial Property Insurance Works

In general, any business that owns or leases physical property should have insurance. Also, businesses that manage inventory or have equipment should purchase coverage. 

So, how does it work? Business property covered in a loss is usually paid out according to its replacement value or its depreciated cost, also known as actual cash value (ACV). Replacement cost policies are more expensive because they will essentially make you whole after a loss. But a policy that pays ACV is more affordable for many businesses. 

Get the Support You Need in South Carolina from Caldwell Commercial

When you own or lease commercial property, you should take steps to protect your interests. Having the right type of insurance is one solution. If you’re looking to make a change in your situation, a trusted real estate professional can help as well. Caldwell Commercial is a leader in South Carolina commercial real estate. 

With over 90 years of combined experience, our team of trusted commercial real estate property managers and real estate specialists help clients throughout the Charleston, SC, area achieve their goals. Contact us today to learn more about how we can help you grow and succeed.