Does my Business Need Property Insurance?


Commercial property insurance protects your building, its contents, and exterior fixtures just outside of it such as a fence or outdoor sign. It can help to pay the costs to repair or replace your company’s physical assets after a fire, explosion, burst pipes, storm, theft, and vandalism. If you run a home-based business, commercial property insurance provides more coverage than your homeowner’s policy.

Items generally covered by commercial property insurance include:

  • Building
  • Computers, equipment, and tools
  • Furniture
  • Exterior signs
  • Fence and landscaping
  • Important documents
  • Inventory
  • Personal property

Commercial property insurance does not cover earthquakes or floods unless specifically added to the policy.

Commercial property insurance is not required by law, but it is something you should consider for your business. Landlords may require proof of commercial property coverage from business tenants, and lenders typically require it for the life of the mortgage on a business building.

The value of all your business assets including your building will determine the cost and coverage levels of the property insurance coverage. Other factors that will determine the premium include:

  • Location. Is the building located in an area prone to storms and other natural disasters? 
  • Construction. Is the building constructed with fireproof materials? Does it have new or upgraded electrical wiring, plumbing and HVAC?
  • Industry. What is the industry? Different industries have different levels of risk. A realtor’s office generally carries less risk than a restaurant or repair shop.
  • Fire and theft protection. How close is the nearest fire hydrant and fire station? Does the building have a fire alarm and/or sprinkler system? Is there a security system in place?

To learn more about business property insurance and casualty insurance available through Enterprise Insurance Services,* we invite you to contact us at 978-656-5594 or 877-671-2265.

*All insurance policies offered by Enterprise Insurance Services are placed through our partner, HUB International NE, LLC. Insurance products are not deposit products, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value.

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