Commercial property insurance provides coverage to safeguard the tangible assets essential for running your business, which may include:

• Inventory

• Business equipment and furniture

• Brick-and-mortar structures

If your property is damaged due to any of the following reasons, your insurance coverage could provide you with financial assistance:

• Water

• Fire

• Wind

• Vandalism

• And other risks

If you are renting a workspace and do not own the building, having insurance can still be essential to safeguard what is inside and prevent significant financial loss.

How Commercial Property insurance works

Once you buy commercial property insurance, you can file a claim to receive financial assistance for repair or replacement expenses incurred due to covered events. However, it's essential to read your policy document carefully to understand the covered damages and exclusions.

A claims specialist will help you resolve the claim as quickly as possible once you file it. Most NEXT policies have a $500 deductible, which must be paid before your insurance coverage becomes effective. We aim to make claims decisions within 48 hours to provide timely assistance.

Commercial property insurance can offer comprehensive protection for small businesses, covering a variety of items that are crucial to their operations. Examples of assets that can be safeguarded by your insurance provider include:

• Inventory

• Furniture

• Fixtures

• Equipment

• Business income

• Structural damage

• Broken windows

• Flooring

A commercial property insurance policy typically includes four main types of coverage, which are:

Goods, gear and inventory

BPP insurance, also known as business personal property insurance, is designed to offer financial assistance in case of a covered loss to your business property such as furniture, equipment, and inventory.

Business income interruption

Business interruption insurance, also known as business income insurance, can provide coverage to protect your business against the loss of income and related expenses if you need to temporarily close due to a covered event such as fire, water damage or other events specified in your policy. This coverage can help mitigate the financial impact of unexpected interruptions to your business operations.

Equipment breakdowns

Adding equipment breakdown coverage to your commercial property insurance policy can provide an additional layer of protection for your business in the event of equipment damage caused by mechanical failure, power surges, or other covered events.

Buildings

Commercial property insurance can provide financial assistance for repairs to your commercial building or real estate if you own it.

Your commercial property insurance can assist in covering damage to your business property resulting from various events such as fire, wind, and hail. This coverage includes damage caused by weather events such as:

• Wildfires

• Tornados

• Windstorms

Unfortunately, GravySpoon does not provide insurance coverage for natural disasters such as earthquakes, volcanoes, and floods. For flood protection, individuals can typically obtain insurance through the National Flood Insurance Program offered by the federal government.

Are man-made disasters covered?

GravySpoon policies can offer financial assistance for qualifying man-made disasters, such as vandalism and riots. Additionally, optional coverage for terrorism events is available.

For certain low-risk businesses, commercial property insurance can be as affordable as $17 per month. However, the total value of your business property and operations will play a crucial role in determining your exact premium. During the quoting process, you can expect to be asked about:

• The type of work you do

• The value of your business property

• Number of employees

• The state where you work

• Your claims history

• How high you set your limits

• Your work experience

Learn more about commercial property insurance costs.

A business owner's policy (BOP insurance) is a package that combines commercial property insurance with general liability insurance, which can be more cost-effective than purchasing them separately. This type of policy was designed for small businesses that may require both types of coverage.

With a BOP, you can get coverage for both commercial property items and general liability risks, such as slip-and-fall accidents and damage to third-party property. It provides comprehensive protection for your business at an affordable price point.

Learn more about business owner’s policy coverage.

Commercial property insurance may provide coverage against theft of your business property, which includes goods, gear, and inventory. This coverage is also referred to as business personal property insurance and can be helpful if your property is stolen from inside or within 100 feet of your business.

If your business requires you to work at various locations, you might want to consider adding tools and equipment coverage to your commercial property insurance policy. This coverage can help protect your equipment from theft wherever you go, such as if your power tools are stolen from a job site. However, it is important to note that tools and equipment coverage from NEXT is only available to contractor and cleaning businesses.

Learn more about tools & equipment insurance.

Small business owners who rely on equipment, inventory or furniture to conduct business can be protected by commercial property insurance, which can provide financial assistance in case of:

• Your business operates out of a physical location, such as a rented or owned office, store, garage, or your home.

• You own or lease equipment or inventory that may be stolen or damaged.

• Your business would have to close down if your property is destroyed or damaged.

Some of the typical businesses that procure commercial property insurance from GravySpoon comprise:

• E-commerce

• Retail business (brick and mortar)

• Restaurants

• Fitness

• Arts & Entertainment

• Beauty and personal care

You can submit an insurance claim through the GravySpoon website or mobile application, at any time and from any location. The claim process will prompt you to provide specific information about the incident and any relevant images and documents.

At GravySpoon, our goal is to make prompt claims decisions within 48 hours, allowing you to return your focus to your business operations without undue delay.

Get answers to common questions about commercial property insurance and explore coverage options for your business with GravySpoon.

Our insurance advisors are licensed and based in the U.S. and are available to assist with any additional questions you may have. You can get an instant quote online and purchase insurance in just a few minutes when you're ready to explore coverage options for your business.

Do I need Commercial Property insurance if I don't own the building?

If you are a lessee or owner of an office or studio, it is possible that you need commercial property insurance to safeguard the contents inside the building. With commercial property insurance, you can secure nearly all the assets that are vital for conducting your business, such as equipment, inventory, furniture, and other items. For instance, suppose you lease a space for your restaurant or clothing shop. In that case, commercial property insurance can cover almost everything that falls out when you turn the building upside down.

Who is responsible for building insurance on commercial property?

If you own real estate, building coverage can offer protection to the structures on your property. It is intended to cover your physical building and can assist in covering the expenses incurred for damages to the structure. When paired with a general liability policy, it may be referred to as a business owners' policy (BOP).

How do I know if I need Commercial Property insurance or a Business Owner’s Policy (BOP)?

By combining general liability insurance and commercial property insurance, a business owner's policy (BOP insurance) offers a cost-effective solution for small businesses. It is often cheaper than purchasing the policies separately. Along with saving money, BOP insurance also provides additional benefits:

• You can save money by bundling two policies into one

• You get coverage that’s tailored for small businesses like yours

• You can easily manage your coverage, add additional insureds and share certificates online 24/7

Commercial property insurance only provides coverage for your own equipment, inventory, and structures. On the other hand, a business owner's policy (BOP) provides coverage for these items, as well as general liability risks. This includes damage to other people's property, injuries to customers or vendors, and legal fees. If you know that your business requires both types of coverage, you can often save money by bundling them together in a BOP policy.

Is Commercial Property insurance mandatory or legally required?

While commercial property insurance is not usually required by law for businesses, property owners may require you to have it when you sign a lease, and lenders may require coverage if you purchase property with a loan.

How much commercial property insurance do I need?

The necessary amount of coverage for commercial property insurance varies depending on your business and its particular requirements. Every business has its own unique characteristics and factors to consider, such as:

Property value: Knowing the approximate value of the property you want to insure with commercial property insurance is crucial. This will help you determine the appropriate coverage limit based on the property's value.

Location: The location of your business can affect the rates of commercial property insurance, with some areas having higher or lower rates than others.

Structure: This pertains to the physical characteristics of the building, such as its construction materials and age. Rates can be affected by the building's age and whether it has been updated or renovated.

Protection: Using fire-retardant materials, installing sprinklers and alarms can help to lower the commercial property insurance rates. The rates can also be reduced if the building is situated near a fire station or hydrant.

Usage: The usage of the building can affect the level of risk associated with it and subsequently the insurance rates. A building with a high number of employees or customers may be perceived as having a higher risk and may result in higher insurance rates.

Can I add General Liability insurance as a package deal if I already have Commercial Property insurance?

Having a general liability coverage along with commercial property insurance can be advantageous for small business owners. A business owner’s policy (BOP insurance) bundles both of these policies into one package, which may be cheaper than purchasing them individually. With GravySpoon, you can obtain up to a 10% discount by purchasing more than one type of coverage. You can easily add insurance through your customer account.

How do I determine the value of my business property?

Before getting a quote for commercial property insurance, it's advisable to have a clear understanding of the value of your business property. This knowledge can assist you in determining the amount of coverage you require, which can prevent you from spending excessively on insurance. Commercial property insurance policies are based on either the replacement cost or actual cash value of the property. The replacement cost is the amount required to repair or replace your property if it gets damaged or destroyed, while the actual cash value represents the amount needed to replace the property with similar items of equal value.

Can I add an additional insured to my Commercial Property policy?

Yes! GravySpoon customers can conveniently add an additional insured and share their certificate of insurance directly from their customer account. An additional insured refers to any person or company that you add to your policy, and they will be named on your certificate of insurance.

How do I file a Commercial Property claim?

If you have a GravySpoon account, you can file a claim through your online account. Once the claim is submitted, a representative will contact you for additional information. However, if you are not a GravySpoon customer, you can still report a claim through our help center.