For more than 50 years, Pepper, Johnstone & Company has been trusted with insuring families and businesses. We partner with 60+ insurance companies so that you can consider options that provide the most appropriate protection.

Commercial Property Insurance

from Pepper, Johnstone & Company

One of the most common types of business insurance is commercial property insurance, which provides coverage for buildings, inventory, equipment, tools, and more. Commercial property insurance protects against losses from specific events such as fire, break-ins, vandalism, wind, and other natural or man-made disasters, ensuring businesses can afford necessary repairs or replacements.

A basic commercial property insurance policy may be all you need, although the types of coverage can vary between different insurance companies. Commercial property insurance coverage is crucial for businesses to recover from losses, offering options like cash or replacement value for stolen or destroyed items. As an independent insurance agent, Pepper, Johnstone & Co. can help you determine the type of insurance policy and range of coverage that is best for your business.

For a full list of coverage available or to learn more about this business property insurance, contact us today.

What Is Commercial Property Insurance?

Commercial Property Insurance is a commercial property policy designed to help protect your company and its physical assets from various risks, including fire, storms, theft, and vandalism. These are all unexpected events that can occur without warning, making it essential to have proper coverage in place. Generally, most policies exclude flood as a covered cause of loss, indicating that a separate policy is necessary to safeguard against floods and the resulting damage.

About Commercial Property Insurance

Insuring Buildings

Do you own a commercial building? Do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Call us today, and we’ll help determine if you have enough commercial property insurance for your business.

There are several types of insurance available for physical structures, including building insurance, commercial building insurance, and coverage specifically for your business building. When deciding on coverage, consider the cost to replace property and the property value, as these factors directly influence your insurance needs. The coverage limit and overall coverage limits you select are crucial, as they determine the insurer’s maximum payout in the event of a loss. Your lease agreement and whether you are the property owner or a tenant will affect who is responsible for securing and paying for insurance. The business location and your business's location also play a significant role in determining insurance requirements and costs. Installing safety features such as a sprinkler system or sprinkler systems can help mitigate risk and may qualify you for insurance discounts. Additionally, your claims history can impact your eligibility for coverage and the premiums you pay.

Flood Insurance

Most commercial property policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from resulting damage. Check your current property insurance policy to be sure you are covered. If you’re unsure, ask us to review your insurance policy, and we’ll help you find the best solution.

Business Personal Property Coverage

Business personal property insurance covers property at a specified location, such as furniture, fixtures, equipment, and inventory. This coverage can also extend to other property essential to your business operations. Be aware that most commercial property policies have limited coverage for property taken off the specified location. If you have frequently taken off-site equipment to various locations, you must have an inland marine policy (equipment or installation floater).

Business Income (Business Interruption Coverage)

This coverage reimburses a business owner for lost profits and fixed expenses while the business is closed. It applies while the premises are being restored because of damage from an event such as a fire. Business income insurance may also cover financial losses if civil authorities limit customer access to your neighborhood or business after a disaster. This policy is designed to reimburse you for lost business income during the period of restoration. We strongly recommend that all businesses acquire this coverage.

Electronic Data Processing (EDP) Insurance

This is separate property coverage specifically designed to protect your computer-related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and, in some cases, virus attacks.

How Much Does Commercial Property Insurance Cost?

The price of commercial property insurance can depend on a variety of variables. You want to get a policy that covers the full value of all your assets, including your business. This includes computers, the building, furniture, inventory, and important documents. The total cost of your insurance policy will depend heavily on the value of all of these things. Other factors will play a part as well. Location, occupancy, and fire protection are external factors that will influence the cost. Buildings that are more prone to damage will pay a bit more than generally safe buildings built with safety in mind. Insurance costs, commercial property insurance costs, insurance rates, and commercial property insurance rates are all determined by these variables, and understanding how they are calculated can help you make informed decisions about your coverage. The median cost of commercial property insurance provides a useful benchmark for what most businesses typically pay, based on industry data. Choosing a higher deductible can lower your premium, but be sure the amount is affordable if you need to file a claim. To save money, consider strategies like bundling policies or paying premiums annually. Understanding the difference between ‘actual cash value’ and replacement cost is crucial; the former considers the current worth of an item, factoring in depreciation, and usually costs less but pays out less in the event of a loss. At the same time, the latter covers the cost of replacing lost items with new equivalents.

Pepper, Johnstone & Co. understands our clients’ Athens business insurance needs. The right coverage for you is unique – call us today to learn how to protect your business and your future with the right insurance.

Frequently Asked Questions
About Commercial Property Insurance

Commercial property insurance generally covers physical assets such as buildings, equipment, tools, inventory, furniture, and fixtures. It protects businesses from losses due to events like fire, theft, vandalism, wind, and certain natural or man-made disasters. These are considered a covered loss under most policies, meaning the insurer will provide financial protection for these specific incidents. Commercial property coverage is flexible, with various coverage options available to suit different business needs and budgets. Many insurers offer packages that combine commercial property insurance with other coverages, such as general liability or business interruption insurance, for more comprehensive protection. However, flood damage is typically excluded and requires a separate policy.

Yes, most commercial property insurance policies only cover items at a specified location. If your business uses equipment or inventory at multiple locations, an inland marine policy (also known as an equipment or installation floater) is recommended to ensure proper protection.

Business income insurance, also known as business interruption coverage, compensates for lost profits and fixed expenses when a business is temporarily closed due to property damage from events like a fire. This type of insurance is also referred to as business interruption insurance. It may also cover losses if authorities restrict access to your location following a disaster. Business income insurance helps reimburse your business for lost income during the period when normal operations are halted. This coverage is essential for maintaining financial stability during downtime.

The cost depends on several factors, including the total value of your assets (building, equipment, inventory, etc.), location, occupancy type, and fire protection measures. Policy structure also matters—choosing replacement cost coverage generally results in higher premiums than actual cash value, but it offers greater protection by covering the full replacement of lost items without depreciation.