What Does Commercial Property Insurance Cover?

Commercial property damage can happen to your business at any time. Understanding what your insurance does and does not cover can save you a lot of headaches in the future. Keep reading to learn more about what commercial property insurance covers.

If your business is damaged, our commercial property damage lawyers can help you determine your options based on your insurance coverage and fight for the compensation you deserve.

What Is Commercial Property Damage?

Commercial property damage constitutes any damage that befalls a business’s structure, equipment, or other possessions due to theft, vandalism, fires, and acts of nature, which include the likes of tornadoes and hurricanes

Commercial properties account for approximately half of insurance premiums written. People need to be able to protect their businesses from destruction so they can continue to provide for their families, employees, and the community. 

According to the Florida Statute of Limitations, you have four years to ensure your claim is filed. But if your property is exposed to any form of damage, it is imperative that you put in a claim sooner rather than later to avoid the damage getting worse.

How Much Does Commercial Property Insurance Cover?

Commercial property insurance covers the buildings, structures, contents, and other property of companies or businesses when they are destroyed or damaged. Commercial property insurance is often bundled with other insurance types to ensure full coverage for the business.

Commercial property insurance is for all businesses, especially those that have buildings, critical equipment, assets, or access to customers and suppliers. Food and hospitality establishments, specifically, should never be without coverage since disaster can strike at any moment.


Due to the nature of the hotel business, a lot of investments and capital are tied up in real estate. Hotel buildings are often worth substantial amounts of money. A commercial property insurance policy is required to protect the owner’s assets in case there’s a catastrophe.

The policy can cover the buildings you own, the property within those buildings, or perhaps even property outside the buildings. It is important to make sure that your insurance policy provides enough cover to rebuild the hotel should unforeseen events occur.

Restaurant Kitchen, Concept of Commercial Property Damage


The food and restaurant industry is highly visible to the public and their operations involve open flames and ovens, which is why property insurance is a must-have coverage. Restaurant owners typically buy a business owners policy (BOP) which includes commercial property insurance, business interruption insurance, and liability protection.

A commercial property insurance policy for a restaurant can cover the building, freezers, kitchen equipment, dining tables, and other property along those lines. Claims on restaurant property insurance typically range from building fires to theft.

Types of Coverage 

Most commercial property insurance policies cover the following:

  • Building: Commercial property insurance covers the cost of repairing or reconstructing a physical building that gets damaged.
  • Business Property: Commercial property insurance not only insures buildings but also everything contained in them, as long as they have been purchased by the business for business purposes (e.g., dishes, kitchen equipment, cash registers, computers, chairs, etc.)
  • Inventory: Commercial property insurance policies also usually cover the costs of both perishable and non-perishable inventory.
  • Business Interruption: Property damage also often leads to business interruption and lost income. Many commercial property insurance policies will reimburse your business for operating and payroll expenses while repairs are underway.


Commercial property insurance has some coverage exclusions including the following:

  • Commercial automobile accidents: If your business owns any vehicles, you will need to take out commercial auto insurance to cover any damage to your vehicles and any injury that may occur to the driver of the vehicles.
  • Floods and earthquake damage: If you operate in areas prone to such weather events, such as Florida, you should ask your property damage attorney to cover those events specifically. (If you would like know more information about what’s covered when there is water damage, view this page)
  • Equipment breakdown: Equipment breakdowns or malfunctions are not covered by commercial property insurance. To safeguard your business’s equipment, you will need to speak to your property damage attorney specifically for equipment breakdown insurance.

Commercial property insurance is vital for all businesses, no matter how big or small they are. Having a clear understanding of what your commercial property insurance covers will come in handy when unexpected events occur. It is also important to note any exclusions that your policy may have and seek additional coverage to further protect your business.

Speak to the Experts 

Commercial property damage affects many businesses annually. Ensuring that the right insurance policies are in place to safeguard your business will always be beneficial. If you have experienced any commercial property damage, it is critical to take action. We can help you determine your options based on your insurance coverage. We will investigate, negotiate, and litigate your case to get you the results you deserve.

Schedule your free case review today with our Florida property damage attorneys. When insurance companies fail, Klotzman Property Damage Law succeeds.