Who Should Consider Commercial Property Insurance?

all business owners should consider commercial property insurance

Commercial property insurance is an important part of protecting your business against unforeseen events. It’s slightly different from other forms of insurance in that it specifically covers expenses associated with business property. While most business owners should purchase commercial property insurance, there are certain circumstances that are unique. Read more below.

What Commercial Property Insurance Covers

Commercial property insurance covers exactly what it sounds like – commercial property. This insurance is meant to protect business owners against unexpected events, like certain natural disasters and theft. It covers most items specific to the property. This includes: 

  • physical property
  • office equipment
  • manufacturing equipment
  • inventory
  • landscaping
  • outdoor items

It does not cover losses by tenants using the building or losses due to floods or earthquakes. 

Who Should Purchase Commercial Property Insurance

Owning a business is an expense. From equipment to inventory to renting or owning the physical space, many business owners have already invested a considerable amount of money into their business. Therefore, almost anyone who owns a business should buy commercial property insurance. Since there is no way to predict the future, the only way to protect yourself is through insurance and reducing your risks. However, there are certain populations that may already be covered. 

People who do not own their building may not need to buy a traditional commercial property insurance policy. If you own rather than lease your building, your lease may already include certain coverage. Most likely, however, your lease would not cover all aspects of your building. You will still need coverage for certain things that specifically pertain to your business, like inventory and manufacturing equipment. Review your lease with an agent for specific coverage details. 

The last group who may not need commercial property insurance is people who have a Business Owner’s Policy. This type of insurance policy combines commercial property with general liability insurance. Bundling these policies together can help you save money. If you have bundled insurance policies, you may already be covered — check with an agent today. 

Additional Insurance Policies

Commercial property insurance does not cover all circumstances. There are specific types of insurance policies that you must purchase to protect against certain situations. For example, business owners need to buy flood and earthquake insurance to protect against those specific natural disasters. Additionally, a commercial property policy does not cover you against liability. 


All business owners should have some form of commercial property insurance. Navigating all of the different types of insurance needed to help protect you and your business can be tricky. Call us at Redwood Agency to learn more!