Commercial Property
Commercial property insurance from Arroyo Insurance Services safeguards your business’s physical assets from damage or destruction caused by covered perils in California. It also covers lost business income resulting from physical property damage, ensuring you can recover quickly after unexpected events.
What Commercial Property Insurance Covers
Comprehensive Protection for Your Business’s Assets
Buildings
Covers owned or rented buildings, including offices, retail stores, restaurants, warehouses, and manufacturing plants.
Equipment
Protects office equipment, furniture, fixtures, and manufacturing tools essential to your business operations.
Inventory
Covers inventory stored on-site and in stock.
Protect Your Business Properties in California Today
Commercial property insurance is essential for minimizing risk and ensuring your business in California can recover quickly after unexpected events. Our team will help you find the right coverage to protect your business’s physical assets and income.
What Perils Are Covered?
Protection Against a Wide Range of Risks
- Fire and explosions
- Burst pipes
- Storms, wind, and lightning
- Theft, vandalism, and burglary
What’s Not Covered?
Some perils require additional coverage:
- Earthquakes
- Floods (unless added to the policy)
Why Your California Business Needs Commercial Property Insurance
Comprehensive Protection for Financial Stability
- Protects Your Physical Assets: Ensures you can repair or replace damaged or destroyed property.
- Reduces Out-of-Pocket Expenses: Helps avoid significant financial loss after unexpected events.
- Keeps Your Business Running: Prevents temporary closures by covering lost income and expenses related to recovery.
Why choose Arroyo Insurance?
Why 100,000 businesses in California choose Arroyo?
Tailored Insurance Packages
Because every business is different from another, our insurance solutions are fully customizable to best fit your individual needs.
Quick and Simple Process
To help you focus on building your business, we've made our process quick and hassle-free, showing our commitment to your success.
Years of Experience
Although our South Bay office opened in 2006, our history of providing comprehensive business insurance in California extends back to 1986.
Words of Appreciation from our Clients
Testimonials
Questions You Might be having
FAQs
What is Commercial Property Insurance?
Commercial Property Insurance is a type of insurance that helps protect a business’s physical assets from a range of perils, such as fire, windstorms, theft, and vandalism. This coverage can include the building itself (if owned by the business), as well as its contents like equipment, inventory, furniture, and fixtures, providing financial support to repair or replace damaged or lost property, and sometimes even covering lost business income resulting from the damage.
Why do businesses need commercial property insurance in California?
Businesses in California need commercial property insurance to safeguard their physical assets against the state’s unique and frequent risks, including wildfires, earthquakes, and severe weather events that can cause significant damage or loss. While not always legally mandated, this insurance provides crucial financial protection for repairing or replacing buildings, equipment, and inventory damaged by covered perils, ensuring business continuity and preventing potentially devastating financial losses that could otherwise force closure. Furthermore, many lenders and lessors in California require businesses to carry commercial property insurance as a condition of their agreements, making it a practical necessity for securing financing or leasing commercial spaces.
What benefits do I get by getting commercial property insurance?
By obtaining commercial property insurance, businesses gain the significant benefit of financial protection against damage or loss to their physical assets, allowing them to recover and continue operations after unexpected events like fires, storms, theft, or vandalism without facing potentially crippling costs. This coverage can also include protection for lost business income due to property damage, provide peace of mind knowing their investment is secured, and may be required by lenders or landlords, thus facilitating business operations and growth.
What businesses require commercial property insurance?
Any business that owns, leases, or uses physical property for its operations generally requires commercial property insurance, as it protects tangible assets such as buildings, equipment, inventory, furniture, and fixtures from covered perils; this includes a wide range of businesses like retail stores, restaurants, offices, manufacturing plants, warehouses, service providers, and even home-based businesses that utilize dedicated commercial spaces or equipment.
How costly is commercial property insurance in California?
The cost of commercial property insurance in California varies significantly based on numerous factors, including the location of the property (considering risks like wildfire and earthquake zones), the size and type of the business, the value and nature of the insured property, the specific coverage limits and deductibles chosen, the building’s construction and safety features, and the business’s claims history; therefore, it’s essential for businesses to obtain quotes from multiple insurers to determine the actual cost for their specific circumstances.
What is covered by commercial property insurance?
Commercial property insurance typically covers direct physical damage to a business’s owned or leased property, which can include the building itself, its fixtures, permanently installed machinery and equipment, as well as business personal property like furniture, computers, inventory, and supplies, and may also extend to outdoor fixtures such as signs and fences, usually protecting against perils like fire, windstorms, hail, explosions, vandalism, and theft, although specific coverage can vary depending on the policy and any additional endorsements purchased.
Here are some common items covered by commercial property insurance:
- Buildings: If your business owns the building, the insurance can cover damage to the structure itself, including the foundation, roof, and walls.
- Business Personal Property: This includes items like office furniture, computers, equipment, machinery, inventory, and supplies owned by your business and used in its operations.
- Fixtures: Permanently installed items such as lighting, plumbing, and built-in shelving are typically covered.
- Leasehold Improvements: If you’ve made improvements to a leased space, this coverage can help protect your investment in those alterations.
- Exterior Fixtures: Items outside the building, like fences and outdoor signs, may also be covered.
- Personal Property of Others: If you have property belonging to others in your care, custody, or control, there might be limited coverage for it.
- Debris Removal: The cost of removing debris after a covered loss can often be included.
- Business Income (Business Interruption): While not direct property coverage, some policies include coverage for lost income and extra expenses incurred if your business has to temporarily close due to covered property damage.
What is not covered by commercial property insurance?
Standard commercial property insurance policies often exclude coverage for certain perils like floods, earthquakes, and routine wear and tear or lack of maintenance, which usually require separate specialized policies or endorsements; additionally, coverage may not extend to certain types of property such as vehicles, money and securities, or damage caused by war or nuclear hazards, and there might be limitations or specific exclusions for damages caused by insects, rodents, or pollution.
Here are some common exclusions from a basic commercial property insurance coverage:
- Floods: Damage from floods is typically excluded and requires a separate flood insurance policy.
- Earthquakes and Other Earth Movements: Similar to floods, earthquake damage usually needs a specific earthquake insurance policy or endorsement.
- Wear and Tear/Deterioration: Gradual deterioration, aging, and normal wear and tear are generally not covered.
- Lack of Maintenance: Damage resulting from a failure to properly maintain the property is usually excluded.
- Pest Infestations: Damage caused by insects, rodents, or other pests is often not covered.
- Pollution: Cleanup costs and damage related to pollution are typically excluded.
- Boiler and Machinery Breakdown: While some policies may offer this as an add-on, standard policies often exclude damage from the sudden and accidental breakdown of machinery and equipment.
- Ordinance or Law: Increased costs of rebuilding or repairing due to changes in building codes may not be covered without a specific endorsement.
- War and Nuclear Hazards: Damage resulting from acts of war or nuclear events is typically excluded.
- Certain Types of Property: Money, securities, and vehicles might have limited or no coverage under a commercial property policy and may require other types of insurance.
- Intentional Acts: Damage caused intentionally by the insured or their employees is not covered.
- Cyber Risks: Losses related to cyberattacks and data breaches are generally not covered by commercial property insurance and require cyber liability insurance.
Does commercial property insurance cover natural calamities like earthquake, wildfire, tornado?
While standard commercial property insurance policies often cover damages from events like tornadoes, coverage for other natural calamities such as earthquakes and wildfires typically requires specific additional endorsements or separate policies, as these are often excluded from basic coverage due to their potential for widespread and catastrophic losses; therefore, businesses in areas prone to these specific events should carefully review their policy and consider purchasing supplemental coverage to ensure adequate protection.
How do I choose the right commercial property insurance provider in California?
To choose the right commercial property insurance provider in California, businesses should research and compare multiple insurers based on factors like their reputation and financial stability ratings, the specific coverage options they offer that align with the business’s needs (including endorsements for common California risks like earthquakes and wildfires), the quality of their customer service and claims handling process, and the overall cost of the policy, ensuring they obtain quotes that reflect adequate coverage limits and suitable deductibles for their unique circumstances.
My business does not own any property. Do I still need commercial property insurance?
Even if your business does not own the building it operates from, you might still need commercial property insurance to cover your business personal property, such as office furniture, computers, equipment, inventory, and any other tangible assets you use to run your business, as these items are susceptible to damage or loss from covered perils like fire, theft, or vandalism, regardless of who owns the physical building.
Meet Robert J. Kelly, CAWC
Your Expert in Commercial Insurance
Robert J. Kelly, CAWC Leads the Arroyo-South Bay Commercial Insurance Brokerage (Workers Comp, Commercial Property, General/Product Liability, Commercial Auto, Cyber Risk, EPLI/D&O, Pollution Liability, Professional Liability and more and serves a variety of industries such as real estate, hospitality and restaurants, construction, technology, manufacturing, entertainment, trucking, breweries and wineries, and environmental to name a few.
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