Commercial Property - A Brief Introduction

Commercial Property Insurance

A business’s property can be essential to the function and success of the business. A Commercial Property Policy (CPP) policy can provide crucial financial compensation to help a business recover and rebuild if and when business property is damaged or destroyed. The ideal policy will depend on the type of property involved in the business and the perils that might cause damage or destruction of that property.

A business can buy Commercial Property Insurance for anything from buildings and furnishings to computer systems and heavy machinery. Some businesses also need to insure third parties’ property that the business holds and controls temporarily (e.g. a distribution warehouse, Dry Cleaners or a repair shop). When choosing a policy, make sure any expensive or crucial property will be covered.

Not all Commercial Property policies protect against the same perils or risks. Some policies only insure against specifically named perils (anything not listed is presumed excluded), while other policies insure against all perils except for a few named exclusions. Some of the perils that businesses commonly insure against include fire, lightning, wind, hail, vandalism, and riots. It is very important to find a policy that insures the right property against the right risks.