Commercial Property Insurance in California – What You Need To Know

Warehouse worker

It doesn’t matter whether you’ve been in business for years or whether you are thinking of starting a business; investing in commercial property insurance can pay dividends should something go wrong. Running a business is challenging enough without having to worry about the potential financial loss from unforeseen circumstances.

Most commercial property insurance provides a broad range of coverage of not just your building, but also your stock, inventory, equipment, tools and can protect you from fire, theft, vandalism and natural/man-made disasters. Any of which could completely ruin your business financially without the proper coverage.

When you are looking to take out a policy for commercial property insurance, consider all your options, what coverage do you need to protect your business? For some businesses, this might be a basic policy but for others it might become more complex.

So what factors must you consider if you are looking to buy commercial property insurance? What can affect the policy you require and what are the best practices for finding the solution for you?

  1. Building

This is probably the most obvious decision to have. If you own commercial premises, you have to be sure that you have the insurance in place to protect you from damage to the building. There are so many threats to buildings; from vandals and thieves, to fire and earthquakes.

Buildings are also very expensive. One incident could easily bankrupt your business without the right insurance. Therefore, it is important to be covered and for the cost to replace the building. Don’t guess on the building costs. Instead, get a third party to give you an appraisal so you aren’t left short changed.

  1. Flood

While you might think this is included in other policies as standard, it normally isn’t. You’ll have to take out a separate policy. This other policy should protect you from any damage caused by floods. However, it is always best to check with your insurance broker to see if you already have flood insurance.

  1. Business Personal Property

Business personal property insurance will help protect you from damage or loss to furniture, fixtures, equipment or any inventory you have stored at your business’ premises. Be wary of the conditions of your policy. Some will have limited protection when equipment or inventory is taken off the specified business premises – so if you do a lot of trade shows or events, you might need to take out a specialist policy to cover you off-site, often called an inland marine policy.

  1. Business Interruption Coverage

No matter what precautions you take, there could be times when the revenue of your company is affected by circumstances out of your control. When this happens, your lost profits can be a significant challenge to the long-term survival of your business. Such events can include activities such as fire, but many policies can also cover losses that occur because civil authorities limit customer access to your business’ location after a disaster. This means that it is particularly important to see if this policy is right for you.

  1. Electronic Data Processing

Most businesses have a computer system these days, and many can’t function without them. Therefore, this coverage is becoming more and more essential, and many commercial property policies have limited coverage for computer networks. By broadening the coverage, you are gaining greater protection should something untoward occur, like a hacker gain access to your system or there is a major power surge that damages your equipment.


If you are looking for Commercial Property Insurance in California, then you need to be aware of the available options and the necessary protection to cover you should something happen to your business. For guidance, contact a broker who is legally obliged to offer you the best advice for your business. Coast General Insurance Brokers works with multiple companies to find you a competitive price for your insurance needs.

What coverage do you have for your commercial premises? Is it enough to cover you?

Let us know in the comments below.

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