A commercial property policy is an insurance policy that covers the buildings and contents of the buildings for a business. Depending on the policy, the policyholder may also be covered for lost income or expenses associated with the damage that has occurred to the building or contents inside the building.
Perils that a commercial property policy may cover include fires, natural disasters, theft, and various others. Even if damage is not extensive, losses can still be very heavy for certain businesses. For example, if a flood causes damage just to one machine that is worth $10,000,000 inside of a company building, the business could be out the money without a commercial property policy or equivalent insurance coverage. Commercial property policies are used for many different types of businesses, including manufacturers, retailers, and distributors.
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