Property Insurance
What Is Property Insurance?
Property insurance helps protect the physical things your business owns or relies on. It pays to repair or replace covered property after covered peril events occur, like fire, theft, or some storms.
This coverage applies to buildings, equipment, furniture, inventory, and other business property. It can also apply to improvements you make to a rented space. Coverage depends on what is listed on your policy and the limits you choose.
Property insurance commonly encompasses inland marine, boiler and machinery (BM), and crime insurance, as well as business income and extra expense (BIEE) coverage.
What Does Business Property Insurance Usually Cover?
Property insurance is first-party coverage, meaning it protects your property, not other people’s. It doesn’t replace liability insurance, and it won’t cover lost income unless you add business interruption coverage.
Property insurance commonly applies to these categories:
- Buildings: The physical structure you own, including walls, roofs, floors, and built-in fixtures
- Business personal property (BPP): Movable items owned by the business, such as furniture, computers, tools, signage, and supplies
- Inventory or stock: Goods you hold for sale, whether on shelves, in storage, or in back rooms
- Tenant improvements and betterments: Permanent upgrades you paid for in a rented space, such as shelving, counters, flooring, or lighting
- Certain outdoor property: Limited coverage for specific items like signs, fences, or detached structures
Not every policy covers every category. Coverage depends on the policy form, limits, and endorsements.
Questions to Ask About Your Property Insurance
- What property is listed on my policy?
- Are my limits high enough to replace everything today?
- Is coverage based on replacement cost or actual cash value?
- Does coverage apply to property away from my main location?
- Are there major exclusions I should know about?
- Do I also have business interruption coverage or business income and extra expense coverage (BIEE) coverage?
What Is Property Insurance vs Liability Insurance?
- Property insurance = “fix/replace what I own”
- Liability = “help when someone says I hurt them”
- Business interruption = “help me survive while I rebuild”
| Type of Coverage | What It Covers | What It Doesn’t Cover |
|---|---|---|
|
Property insurance |
– Protects the physical property you own and use for business |
– Lawsuits |
|
Liability insurance |
– Protects you when someone claims you caused harm |
– Damage to your own building, equipment, or inventory |
|
Business interruption coverage |
– Replace lost income after a covered property loss |
– Physical damage to property |
|
Inland marine |
– Covers business property while it is in transit, stored off-site, or used at temporary locations |
– Permanent buildings |
Who Commonly Needs Property Insurance?
- Retail shops need it for inventory and fixtures
- Restaurants rely on it for equipment and furniture
- Contractors depend on it for tools and materials
- Online sellers use it to protect stored inventory
- Offices need it for computers and furnishings
- Studios rely on it for specialized equipment and build-outs
Get tailored coverage by selecting your industry below.