Commercial Building Insurance: Several Types of Polices and Coverage You Should Know

If you are running business whether it is small or big, you need to make sure that you have secure the property with commercial building insurance. This type of insurance will be beneficial to protect your business because most policies will secure your building against theft, windstorm, fire, or other damage. Unfortunately commercial insurance doesn’t include breaking glass and falling objects in the policy.

Commercial Building Insurance: Several Types of Polices and Coverage You Should Know
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Commercial Building Insurance: Types of Policies and Its Benefits

There are several policy options available to many building owners that will provide the most appropriate coverage in order to protect your property business from any catastrophic situation.

The first one is comprehensive liability policy that will secure your property damage that happens around the building. For your information, in commercial building insurance, there are two different types of insurance policies called “named-peril” and “all risk”.

Named peril policy covers any damage to the property that specifically mentioned in the policies before customers agree with them. While all risk policy secure any damage to the property that caused by all incident except those that are mentioned in the policy.

Another type of commercial insurance for your building is residential property. It means that the owner can purchase individual policy to protect their building form certain incidents

If we talk about the benefit of having commercial insurance, of course it’s pretty simple to answer it.

The building owner will feel peace in mind because they don’t need to take care of their problem by themselves because the insurance company will likely bear the responsibility. The insurance company will pay for the claims that are addressed to your business.

Types of Commercial Insurance Coverage

There are two commons coverage in the commercial insurance: replacement cost coverage and actual value coverage. Replacement cost coverage will likely replace the cost of damaged property with roughly similar quality.

Meanwhile, actual value coverage replaces the cost of the property but it doesn’t include depreciation cost. What is meant by depreciation cost is that property that is damage because of certain this like tear, wear and aging.

There is another option of commercial insurance coverage that you can consider. You may need additional coverage if you live in areas where there are a lot of criminal things happen. Certain insurance company may limit glass coverage in the policy.

You can buy an optional policy to protect your glass-fronted building. Specifics coverage depends on individual policy and depends on what kind of property that needs to have specific protection.


If you think that having insurance for your commercial building is unnecessary, you have to wash away that thought. Having enough insurance for your commercial building will likely reduce huge burden on your shoulder when something unexpected happen to your building.

Moreover, you need to re-evaluate the insurance policy periodically to ensure that the amount of coverage reflect the amount of changes to the property when it is damage.

You also need to pay attention to the regional consideration for example; you may need to buy separate earthquake policy in California since this area is prone to natural disaster.

By having this coverage, you will likely feel protected because the company will likely replace the cost when you suffered financial lost. Finally, you have learned about commercial building insurance and the decision is all up to you. So, good luck with your business!