Commercial property insurance protects commercial property from perils such as fire, theft and natural disaster. A variety of businesses, including manufacturers, retailers, service-oriented businesses and not-for-profit organizations carry commercial property insurance.
Commercial property insurance can be a major expense for businesses that use equipment worth millions or billions of dollars, such as construction, transportation, and manufacturers. However, businesses can usually deduct the cost of commercial insurance premiums as expenses.
When determining how much a company should pay for commercial property insurance, the value of a business’ assets, including the building, is the primary factor. Before meeting with an agent to discuss coverage, a company should take an inventory of their physical assets located at their property. This information will help determine what would be the replacement value and the level of coverage the business should secure.