Your company's physical and intangible property may be protected by purchasing commercial property insurance. The majority of insurance insures types of property rather than particular objects. For instance, commercial insurance for property policy would often insure the structure itself and the contents inside of it. If your company's property falls within the policy's definition of "buildings" or "business personal property," it will likely be insured.

The contents of your office building are the primary target of a business owner's policy (BOP) and other forms of commercial property insurance. As a result, they often provide inadequate protection for the property kept in remote areas like construction sites. Replacement cost coverage is usually included in the base premium of many plans. For the most part, an insurer will foot the bill for repairing or replacing stolen or destroyed goods if it was insured for its replacement cost. The real cash value is used when valuing property not covered by replacement cost insurance.

Whether you own or rent, protecting your company's physical site with commercial property insurance is a good idea. If the building or its contents are damaged or destroyed, property coverage may help cover the repair or replacement costs. Losses from physical damage to furniture, equipment, and other items owned or, in certain situations, rented by the company are covered by property insurance if the landlord insures the building.

Property insurance for a commercial facility is often (but only sometimes) the landlord's responsibility. Read your commercial lease thoroughly to learn about any insurance requirements for the rented space.