Commercial Property

Commercial Property: direct physical loss or damage to Insured Property at the “premises” described in the Policy. This includes buildings, contents, technical equipment, stock, equipment, tools, tenants improvements, the leased property you are legally responsible to insure, the property of others in your care, custody & control. Definitions below:

  • Buildings: buildings or structures occupied for business purposes at the “premises” noted on the insurance policy including (a)  garages, storage buildings, shipping containers and unlicensed trailers used for storage; (b) Permanently installed fixtures, fittings, machinery, and equipment; (c) Signs permanently attached to the insured building(s)


  • Contents: movable property at the described “premises” noted on your policy including (a) Property you own that is used in your business, including furniture, fixtures, machinery, equipment, “stock” and work or goods in progress; (b) Similar property owned by others that is legally in your care, custody or control (c) Tenants’ improvements and betterments, including those completed by a previous tenant.


  • Stock: merchandise held on the premises noted on policy for sale, raw materials, and in-process or finished goods, including supplies and packing, wrapping, shipping, or advertising materials.


  • Machinery, Equipment, and Tools: used in your business to complete your work on or off-premises. Defined as:
    • Equipment: items valued at $2500 or more per item. This includes stand-alone equipment or attached machinery to a vehicle or trailer.
    • Tools: items valued under $2500 per item. This includes tools, smaller equipment, and accessories


  • Optional Coverages/Extensions:
    • Water Damage & Sewer Backup
    • Flood – Sudden and accidental water coming into the building
    • Earthquake
    • In transit/away from premises: limits of contents & stock used away from your Premises. Your policy offers a separate coverage and limit for stock, materials, tools, and equipment used away from your Premises and In-Transit.

Claims Examples:

Windstorm  – Building

The owner of a 6 Plex arrives on site after a major storm to find wind damage to the shingles on the 6 Plex building and detached Carport. Both listed on the insurance policy and part of the property. The wind also knocked off one of the downspouts and there was leaking into the building.


Property In-Transit – Retail Sales

The owner of a retail drapery store takes her truck to pick up a shipment of window coverings from a Wholesaler.  On route back to her store, she is involved in an accident damaging $5000 worth of stock.