Learn more about commercial property insurance with some of the most frequently asked questions we get about our coverage.
If you have additional questions, our licensed, U.S.-based insurance advisors are ready to help.
When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase insurance within a few minutes.
Do I need Commercial Property insurance if I don't own the building?
If you lease or own an office or studio you might need commercial property insurance to protect what’s inside the building.
Commercial property insurance can help protect almost all of the things you need to do business, including your equipment, inventory, furniture and other items.
Let’s say you rent a space for your clothing shop or restaurant. If you were to turn the building upside down and shake it, almost everything that falls out could be covered by commercial property insurance.
Who is responsible for building insurance on commercial property?
Building coverage can help protect the structures on your property if you own real estate.
Building coverage is designed to help protect your physical building and can help pay for damage to the structure. If it’s paired with a general liability policy it may be known as a business owners’ policy or a BOP.
How do I know if I need Commercial Property insurance or a Business Owner’s Policy (BOP)?
A business owner’s policy (BOP insurance) combines two important types of business insurance — general liability insurance and commercial property insurance — into one package that is sometimes less expensive than buying the coverage separately.
BOP insurance has additional benefits:
- You can save money by bundling two policies into one
- You get coverage that’s tailored for small businesses like yours
- You can easily manage your coverage, add additional insureds and share certificates online 24/7
Commercial property only covers your goods, gear, inventory and structures that you own. A business owner’s policy covers all of these items and general liability risks.
Damage to other people’s property, injuries to customers or vendors and legal fees can be included with the liability coverage in a BOP.
If you know your business needs both general liability and commercial property coverage, you can sometimes save money by combining them in a BOP policy.
Is Commercial Property insurance mandatory or legally required?
Commercial property insurance is typically not legally required for your business.
However, oftentimes property owners will require you to have it when you sign a lease and a lender might require you to have coverage if you purchase property with a loan.
How much commercial property insurance do I need?
The amount of coverage you’ll need for commercial property insurance depends on your business and specific needs. Every business is unique and has its own set of variables, such as:
Property value
It’s important to know the estimated value of the property you would like to protect with your commercial property insurance. You can choose your coverage limit based on the value of the property you want insured.
Location
Where is the business located? Rates might be higher or lower depending on where your business is located.
Structure
This refers to the actual building itself and how it was made. New or upgraded structures can sometimes reduce rates.
Protection
Fire-retardant materials, sprinklers and alarms can help reduce rates. It can also help if the building is close to a fire station or hydrant.
Usage
What the building is used for determines who is in there on a daily basis. A lot of employees or customers usually indicate higher risk — and therefore potentially higher rates.
Can I add General Liability insurance as a package deal if I already have Commercial Property insurance?
Small business owners who have commercial property insurance can often benefit from general liability coverage.
A business owner’s policy (BOP insurance) combines both general liability insurance and commercial property insurance into one package that can be less expensive than buying the coverage separately.
You can get up to a 10% discount when you purchase more than one type of coverage with NEXT. You can add insurance directly through your customer account.
How do I determine the value of my business property?
It can be helpful to have a good idea of how much your business property is worth before you begin a quote for commercial property.
Knowing the value of your inventory and equipment will help you decide the amount of coverage you're looking for (so you don’t overspend on insurance).
Commercial property insurance policies are based on what it would cost to replace property or its actual cash value.
The replacement cost is the amount of money it would take to replace or repair your property if it’s damaged or destroyed.
The actual cash value is the amount of money it would cost to replace your property with items of similar value.
You can read more about actual cash value and replacement cost in this article.
Can I add an additional insured to my Commercial Property policy?
Yes, NEXT customers can easily add an additional insured and share their certificate of insurance with their customer account.
Any person or company you add to your policy is called an additional insured. They are named on your COI.
How do I file a Commercial Property claim?
If you are a NEXT customer, you can file a claim with your account online.
After we receive your claim, we will call you to get additional details. If you are not a NEXT customer, you can report a claim in our help center.
