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10 Types of Commercial Property Insurance for Small Businesses



There are so many insurance types that protects the interest of the company and its employees as well. Some of them are General Liability insurance, Worker’s Compensation, Professional liability insurance, and Property insurance.

Out of these insurance types, commercial property insurance includes more coverage regarding the properties of a certain company or business. Commercial Property insurance is a type of small business insurance that offers protection against most risks to property including theft, flood, and fire. This is not exclusive to any particular industry.

When a business decides to get commercial property insurance, it is best to include multiple options and try to engage with insurance agent who understands the industry where the company belongs. Below are the types of commercial insurance that may be helpful to the business:

Boiler and Machinery Insurance

This type of property insurance refers to as “equipment breakdown” or “mechanical breakdown coverage”. It provides enough coverage for any accidental failure or collapse of machinery, equipment, and boilers. Usually, the Boiler and Machinery insurance reimburses for the losses on business interruption and property damage.

Builders Risk Insurance

While the company’s building is still under construction, this insurance will cover any losses during the process of erecting the property because of any calamities like windstorm.

Debris Removal Insurance

Debris removal insurance will cover the total cost of removing debris after calamities such as flood or fire. If a fire burns the property to the ground and the company starts to rebuild it, Debris Removal insurance will cover the cost of rebuilding the structure.

Business Interruption Insurance

If the company is suffering from income loss and coupled with an increased on expenses caused by some property damage loss, this insurance will help covering company’s rent, salaries, and taxes too.

Glass Insurance

As the name of the insurance suggests, this insurance covers the broken plate glass windows and store windows.

Crime Insurance

This is considered as an important small business insurance type. It protects the small business against robbery, burglary of cash or fixtures, and theft, done by either its own employees or third parties.

Inland Marine Insurance

This insurance sounds unique and totally helpful for the company properties. It covers the property that is in transit and the people’s property that is also inside the company’s premise. One great example is if the company is a dry cleaning business, it will cover the fire-damage to customers’ clothing from a fire at the premise.

Fidelity Bonds

This one provides coverage when an employee who has a bond to the company steals money or any business property.

Ordinance or Law Insurance

This type of property insurance will cover the fees related to the demolish and rebuild code when the property is destroyed by 50 percent. One example is if the property is a two-story building and the basement was destroyed by flood, 50 percent of the building is required to be built and the local ordinance will require the company to completely demolished and rebuilt the whole structure. Ordinance or Law Insurance will cover just the replacement value of the property.

Tenants Insurance

If the damages to the property is due to the negligence of the company employees, Tenants insurance will cover the damages. It will also cover the improvements of the property.