Commercial Property Insurance

Commercial property insurance is a specialized type of coverage designed to protect businesses’ physical assets from unexpected perils like fire, theft, vandalism, storms, and other hazards that could cause damage or loss. This insurance is essential for maintaining business continuity by covering repairs, replacements, and financial losses tied to property damage.^1^3

What Is Covered Under Commercial Property Insurance?

Commercial property insurance typically covers three main types of property:

• The Building: This includes the structure owned by the business or, in some cases, buildings leased under agreements like triple net leases. Coverage extends to fixtures, permanently installed machinery, and completed additions.^1

• Business Personal Property: Contents within the building, such as furniture, equipment, inventory, and tenant improvements, are covered under this portion. It generally applies to property within or near the insured premises.^3

• Personal Property of Others: Sometimes called property in “care, custody, and control,” this covers property owned by others but held on business premises, such as customer property or leased equipment.^1

Coverage Options and Forms

Common commercial property policies use forms like the Building and Personal Property Coverage Form (CP 00 10) and come with various causes of loss forms specifying covered perils:

• Basic Form: Covers limited perils like fire, lightning, explosions, vandalism, and some natural disasters.^2

• Broad Form: Includes everything in the Basic form plus coverage for falling objects, leaks, and structural collapse.^2

• Special Form: Offers “all-risk” coverage, protecting against all perils except those explicitly excluded, such as floods and earthquakes.^4

Many policies also offer endorsements and options to tailor coverage for specific needs like business interruption, ordinance or law requirements, or equipment breakdown.^3

Replacement Cost vs. Actual Cash Value

• Replacement Cost Coverage: Pays to repair or replace damaged property at current market costs without deduction for depreciation, providing fuller protection.^8

• Actual Cash Value Coverage: Covers the depreciated value of property, accounting for wear and age, which may result in lower payouts.^8

Choosing replacement cost coverage is generally advisable for businesses that want to avoid gaps in rebuilding or replacing property.^2

Why Commercial Property Insurance Matters

Unexpected property damage can halt operations, cause significant financial losses, and jeopardize a company's survival. Commercial property insurance helps businesses resume quickly by covering repair costs, lost inventories, and other related expenses, offering peace of mind and financial security.^7^3

Why Choose Pacific Insurance

Pacific Insurance stands out for its comprehensive commercial property insurance offerings, tailored to fit diverse business types and sizes. They provide expert guidance in selecting the right coverage forms and limits, transparent claims handling, and personalized service focused on minimizing downtime and maximizing business resilience. With Pacific Insurance, businesses gain a trusted partner dedicated to protecting physical assets and ensuring long-term stability through proactive risk management and responsive support.^11

Call Pacific Insurance today: (801) 561-5550

Website: https://pacificinsuranceinc.com/