If your business has property that it would be cost-prohibitive to replace, then property insurance should be the foundation of your business insurance policy. As the name suggests, Commercial Property Insurance policies cover the real and personal property that belongs to the business. Property insurance is generally broad and can include real property such as land, buildings, and other improvements, as well as personal property such as inventory and office supplies and furnishings. There are two basic types of property insurance policies: all-risk policies and peril-specific policies.
All risk policies are going to cover loss or damage to property under all conditions except those excluded in the policy. Losses due to fire, theft, vandalism, and storm damage (but not floods) will generally be covered under an all risk policy.
Many people are familiar with all-risk policies because homeowner’s insurance is generally an all-risk type of policy. However, many property insurance policies specifically exclude coverage for some things like floods. Flood insurance would be an example of a peril-specific policy. It is also important to note that property insurance policies frequently exempt things like the cash and checks kept in a business for operating purposes, making it critical to consider what other types of insurance you may need to carry in order to supplement your all-risk Commercial Property Insurance policy.