Commercial property insurance guide

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Commercial property insurance pays to repair or replace your building and business property damaged by a fire, storm, or other event covered by the policy. It can also pay some of your lost income if your business is unable to operate normally.

Learn more by watching: Starting a business? What you need to know about business insurance

Coverage options

There are three different levels of commercial property coverage. Each level protects against different causes of damage or loss.

Replacement cost vs. actual cash value coverage

Commercial property policies provide either replacement cost coverage, actual cash value coverage, or a combination of both. To be fully protected, make sure your policy provides replacement cost coverage.

Other coverages you might need

Most commercial property policies don’t cover damage from flooding. To be protected from flooding, you’ll need to buy a separate flood policy. You can buy flood insurance from insurance companies that sell it or from the National Flood Insurance Program. Talk to your insurance agent or visit FloodSmart.gov.

There’s a 30-day waiting period after you buy a flood policy before the coverage goes into effect.

Learn more: Do you need flood insurance?

If your business is on the Texas coast or in Harris County on Galveston Bay, your policy probably doesn’t cover wind and hail damage. The Texas Windstorm Insurance Association (TWIA) offers wind and hail coverage for coastal residents and businesses. You can buy TWIA coverage through your insurance agent. Depending on where you live, you might need flood insurance before TWIA will sell you a policy. For more information, visit twia.org or call 800-788-8247.

Don’t wait until the last minute to buy wind and hail insurance. TWIA won’t sell you a policy if there’s a hurricane in the Gulf of Mexico.

Commercial auto insurance includes liability and property damage protection for cars, trucks and vans that you use for business. It can also cover food trucks, service utility trucks, trailers, and other types of vehicles.

You can buy coverage to protect your business from several types of crime. Common crime coverages include:

Inland marine coverage covers property kept on land, not on water, despite its name. Inland marine coverage covers:

If your business uses property that isn’t covered by your commercial property policy, ask your agent about inland marine coverage.

Most companies offer coverages that you can add to your policy for an extra cost:

Shopping for commercial property insurance

Coverage and rates vary by company, so it pays to shop around. Use these tips to help you shop:

Learn more: How to shop smart for insurance

Saving money on your insurance

Use these tips to help you save money:

Learn more: What to know about deductibles

Questions? Call us at 800-252-3439.