Commercial property insurance
Your building, your equipment, your stock — and the income you'd lose while you put it all back. Property cover is simple in outline and full of detail in practice; the detail is where claims are won or lost.
What's covered
- Building — if you own it, including fixtures, and often tenant improvements you've paid for if you lease.
- Business personal property — furniture, equipment, machinery, computers, stock and supplies.
- Property of others — customers' goods in your care, e.g. for repair shops and dry cleaners.
- Business income and extra expense — lost profit and continuing expenses while you're closed after a covered loss, plus the cost of operating from somewhere temporary.
- Common add-ons — equipment breakdown, spoilage, outdoor signs, sewer backup, ordinance or law (the cost of bringing a rebuilt building up to current code), utility service interruption.
Upstate New York specifics
- Snow load and ice dams — roof collapse from snow weight is covered by standard forms; water intrusion from ice dams usually is. Roof age and condition affect both price and insurability.
- Frozen pipes — covered if you maintained heat or drained the system. Vacant or seasonally closed buildings need a vacancy endorsement and a heating plan.
- Older buildings — much of the Capital Region's commercial stock is 80–120 years old. Carriers ask about roof, wiring, plumbing and heating updates; recent updates lower premiums and widen your carrier choices.
- Flood — excluded; see the FAQ. Worth a look for anyone near the Mohawk, the Hudson or a creek that's flooded before.
Insure to value
Construction costs have risen sharply. A building limit set in 2019 may be 30–40% short today, and with a coinsurance clause that shortfall cuts every claim. I'll walk through a replacement-cost estimate at quote time and again at each renewal.
Standalone or in a BOP?
Most small businesses get property cover inside a business owners policy, bundled with liability. Standalone commercial property makes sense for larger buildings, landlords, higher values, or businesses whose class doesn't fit a BOP. Either way, the questions above are the same.
What I need to quote
- Address, year built, construction type, square footage, and the year the roof, wiring, plumbing and heating were last updated.
- Whether you own or lease, and what the lease requires.
- Replacement value of contents, equipment and stock — a rough inventory is fine to start.
- Annual revenue, for the business-income limit.
- Any prior losses.
Request a quote and I'll come back with options from several carriers, with the limits and endorsements explained.
Common questions
Short answers to what people ask before they call.
What's the difference between replacement cost and actual cash value?
Replacement cost pays what it costs to replace the item new today. Actual cash value deducts depreciation — a ten-year-old walk-in cooler might be worth a fraction of its replacement price. Always insure on replacement cost unless there's a specific reason not to.
What is coinsurance?
A clause requiring you to insure to a set percentage (usually 80–90%) of the property's full value. If you insure for less, the carrier reduces every claim proportionally — even small ones. It's the most common nasty surprise in commercial property claims, and it's avoided by setting limits properly.
Is flood covered?
No — standard commercial property excludes flood. Businesses in flood zones along the Mohawk and Hudson, or anywhere with a history of surface water, need a separate flood policy. Sewer and drain backup is also excluded unless added, and it's cheap to add.
Does property insurance cover equipment that breaks down?
Not mechanical or electrical breakdown — that's equipment breakdown cover, an add-on. For a restaurant, HVAC-dependent business or anyone with a compressor, it's worth having, often together with spoilage cover.
Let's talk it through
A phone call or a message is all it takes. The first conversation is just a conversation.