Massachusetts Commercial Property Insurance – Free Quotes by Econosurance (2024)

What Is Commercial Property Insurance?

Commercial property insurance can cover any commercial property your business uses. It will protect you from damages caused by the range of perils listed in the policy. Covered losses can include fire, theft, and natural disasters.

There are a large number of businesses that benefit from commercial property insurance. These include retailers, manufacturers, service-orientated businesses, as well as not-for-profit organizations.

If you purchase commercial property insurance as part of a business owner's policy, then it will also come bundled with general liability insurance.

What Does Commercial Property Insurance Cover?

Commercial property insurance is designed to protect the building structure and all the assets inside the building or in its immediate vicinity. These include:

• Stock and inventory
• Personal property
• Tools
• Furniture
• Production equipment
• Plants and outer adornments
• Signage
• Vital documents

The insurance policy covers damage to the building or commercial property in the event of a fire, explosions, storms, hurricanes, burst pipes, theft, and vandalism. However, earthquakes and floods are usually not covered by commercial property insurance. To get covered for these high-impact events, talk to the insurance agency about whether it can be added as an extension to your commercial property insurance or whether you need to take out a specific flood or earthquake insurance policy.

Commercial property insurance typically does not cover wear and tear. Wear and tear are a common cause of disasters and damage, but it is the business owner’s responsibility to avoid those damages with proper maintenance, and cover the costs when something breaks.

Consider Inland Marine Insurance

If you run a business where a significant proportion of your property is on the go frequently, for instance, at a delivery or construction company, you should also consider inland marine insurance. While commercial property insurance covers the stationary aspects of your business, inland marine insurance covers property that is in transit. It only applies to land transportation, e.g., shipping something by truck.

The occasions that might require inland marine insurance include collisions, cargo theft, weather damage, explosions, and fires. Weather damage can be caused by hazards like hail, rainstorms, and strong wind, and cause $2.2 billion to $3.5 billion dollars of losses for trucking companies annually.

Inland marine insurance typically covers specialty items and equipment used for the business. For example, you can have coverage for personal computers and computer systems, scientific equipment, sales samples, items for delivery, construction equipment, tools, and so on. However, if you own the truck used for transport, the vehicle itself is not covered. To cover the vehicle, you are going to need commercial auto insurance.

Factors Affecting Commercial Property Insurance

A range of factors is taken into account when calculating the cost of commercial property insurance. These include:

• Construction – Just like a house, the construction materials are essential for determining risk. Combustible materials, such as wood, will increase the risk of the property. Whereas fire-resistant interior walls, floors, and doors will be perceived favorably by the insurance company.
• Location – If your business is near a fire station or other essential facilities, then your property is considered to have lower risk, thus the cost of insurance decreases.
• Fire and theft protection – Alarms, sprinkler systems, distance from fire stations, and fire hydrants are all taken into account when considering the risk of a commercial property.
• Occupancy – What kind of business is conducted at a building is a key factor in estimating risk. For example, a restaurant has a higher risk of fire than an office.Additionally, when multiple tenants occupy the same building, the presence of one hazardous occupant will affect the entire building’s fire rating and everyone’s insurance.