Understanding the Cost & Coverage of Commercial Property Insurance

Commercial property insurance protects the assets of your business so that you can keep operating even if an unfortunate event occurs that slows down your progress. Having a commercial property insurance policy in place protects your equipment, buildings, signage, and many other assets from unforeseen losses. This policy is often bundled with other forms of business insurance, such as commercial general liability insurance.

Factors Affecting the Cost of Commercial Property Insurance

Though the premiums you pay for commercial property insurance largely depend on the value of the assets being insured, other factors are also considered. These include:


  • Location: Is your business located in areas with higher crime rates or greater exposure to natural disasters? If yes, then your premiums will be higher.
  • Size of premises: A large factory building will cost more to insure than a single room office.
  • Age of building: Old structures are more susceptible to damages and therefore attract higher premiums than modern structures.
  • Equipment used: Heavy equipment will have higher premiums than lightweight ones.
  • Open peril vs. Named perils: Policies covering open perils (all except those specifically excluded) will cost more than policies offering coverage for named (specifically stated) perils.
  • Industry: What industry are you operating in? The higher the risks involved (say construction), the higher the premiums will be.
  • Safety measures in place: Insurers favor businesses with adequate safety measures in place (anti-theft/ fire protection) with more discounted rates.

What Is Covered

All of the property owned by your business is an investment in your own livelihood. Protecting it is just as important as protecting yourself against various types of liability. Commercial property insurance covers your building and all your assets, whether inside or outside it, including:

  • Exterior signs/ signage
  • Inventory
  • Computers
  • Furniture
  • Equipment used for business
  • Important documents
  • Landscaping

How to Get Commercial Property Insurance Online

The easiest way to find commercial property insurance online is to do your research before settling on an insurer. You will find a wealth of information that will allow you to find the best policy to cover your business needs. Shop around and compare quotes. Once you know what each insurer has to offer, start making a few phone calls and get to know the details of the policy. There may be many terms and conditions that aren’t obvious on the websites, which is why getting in touch with an expert is essential.

When you are ready to purchase a commercial property insurance policy for your business, call the agents at J. Archer Insurance Group. With our many years of experience, we will be able to assess your needs and find a policy that will provide you with the level of coverage you need at an affordable price. If you already have a policy, we will review it to make sure you have enough coverage in place to protect your investment.

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