Protect your building,
your equipment,
your business.
Commercial property insurance for California businesses. Buildings, business personal property, equipment, inventory, and business interruption — structured to actually cover your losses.
Most California Businesses Are Significantly Underinsured on Property
Commercial construction costs, labor, materials, code requirements, and local rebuilding conditions can change quickly in California. Many business property policies use limits that have not been reviewed recently — creating a possible gap between coverage and actual rebuild cost.
Coverage Components
Everything a commercial property
policy should actually include
Commercial property insurance is not one-size-fits-all. Here's every coverage component and what each one protects.
Building / Structure
Covers the physical structure of your commercial building against covered perils — fire, windstorm, vandalism, theft, and more. Applies only if you own the building.
Business Personal Property
Covers business contents including furniture, equipment, computers, tools, inventory, and fixtures inside the insured location. Applies whether you own or lease the space.
Business Interruption
Covers lost net income and ongoing fixed expenses when a covered property loss forces a temporary closure. Pays during the restoration period — typically up to 12 months.
Equipment Breakdown
Covers sudden and accidental breakdown of mechanical and electrical equipment — HVAC, refrigeration, computers, phone systems, production machinery. Standard property policies exclude this.
Tenant Improvements & Betterments
Covers improvements you've made to a leased commercial space — custom buildouts, installed fixtures, specialty flooring. Your landlord's policy does not cover your improvements.
Inland Marine / Floater
Covers business property that moves — equipment at job sites, property in transit, tools in vehicles, and high-value portable items away from your primary location.
Named perils vs open perils — a critical distinction
The type of coverage you choose determines what losses are actually covered. This distinction matters more than most business owners realize.
Basic Form Coverage
Only covers losses from perils specifically named in the policy. If the cause of loss isn't on the list, the claim is denied. Common named perils include fire, lightning, explosion, and windstorm.
Special Form Coverage
Covers all causes of loss except those specifically excluded in the policy. Much broader protection — if the cause isn't excluded, it's covered. Standard exclusions include flood, earthquake, and normal wear and tear.
Coverage Deep Dive
Explore each coverage in detail
Select a coverage type to see exactly what it covers, what it doesn't, and what to watch for in California.
Side by Side
BOP vs Standalone — which is right for you?
A Business Owners Policy bundles property and liability. Here's when each approach makes sense.
| Feature | Business Owners Policy (BOP) | Standalone Commercial Property | ✦ Our Recommendation |
|---|---|---|---|
| Building Coverage | ✓ Included | ✓ Included | Both include it |
| Business Personal Property | ✓ Included | ✓ Included | Both include it |
| Business Interruption | ✓ Usually included | Add-on | BOP advantage |
| General Liability | ✓ Bundled in | Separate policy | BOP convenience |
| Coverage Limits | Capped for small biz | ✓ Unlimited | Standalone for larger limits |
| Industry Eligibility | Small/standard risks | ✓ All industries | Standalone for complex risks |
| Premium Cost | ✓ Lower for small biz | Higher for same coverage | BOP if eligible |
| Equipment Breakdown | Sometimes included | Add-on endorsement | Always add separately |
| Best For | Retail, office, small service | ✓ Manufacturing, contractors, large | Depends on your business |
What drives your commercial
property insurance cost
Commercial property premiums are based on several factors. Understanding each helps you manage costs and avoid surprises.
Construction Type
Frame construction burns fastest and costs most to insure. Fire-resistive or masonry construction earns significantly lower rates.
Location & Fire Protection
Distance from fire hydrants, fire station response times, and Public Protection Class (PPC) rating all affect your premium. Wildfire zone adds significant cost.
Occupancy & Business Type
A restaurant with commercial cooking poses more risk than a law office. Your occupancy type determines base rates for building and contents.
Coverage Amount & Deductible
Higher coverage limits increase premium. Higher deductibles reduce it. Coinsurance clauses can penalize you for underinsuring — we help you avoid these traps.
By Industry
Commercial property coverage for your specific business
Every industry has different property exposures, valuation challenges, and coverage needs. Select yours for specific guidance.
Serving All of California
Commercial property insurance for every California market
We serve businesses in every California county — from retail storefronts to industrial facilities and everything in between.
Frequently Asked Questions
Commercial property insurance explained
Commercial property insurance covers physical business assets against covered perils such as fire, theft, vandalism, wind, and certain water damage. Standard coverage includes the building structure (if owned), business personal property (furniture, equipment, inventory, fixtures), and often business interruption for lost income. It does not cover floods, earthquakes, or equipment breakdown without separate coverage.
Business interruption (BI) insurance covers your lost net income and ongoing fixed expenses when a covered property loss forces a temporary closure. Without BI coverage, a fire that closes your business for 3 months means 3 months of zero revenue while your fixed costs continue. It is one of the most important coverages for any business with physical operations and is strongly recommended.
Replacement cost pays what it actually costs to repair or replace damaged property with new materials today — without depreciation. Actual cash value deducts depreciation, which can leave you significantly short. A building insured at actual cash value could receive a payout below the current cost to repair or replace damaged property. Replacement cost coverage is strongly recommended for many California businesses.
No. Standard commercial property policies explicitly exclude both flood and earthquake damage. California businesses in flood or seismic risk areas need separate policies. Commercial flood insurance is available through the NFIP or private carriers. Commercial earthquake insurance is available through specialty carriers and is strongly recommended for California businesses, particularly those in active seismic zones.
A BOP bundles commercial property and general liability into one package at a lower combined cost. It's designed for small to mid-size businesses with physical locations. BOPs are an excellent value for retail, office, and service businesses. They're not available for all businesses — high-risk industries, businesses with significant unique exposures, or those needing limits above BOP caps typically need standalone coverage.
Equipment breakdown (also called boiler and machinery) covers sudden and accidental mechanical or electrical failure of business equipment — HVAC, refrigeration, computers, phone systems, production equipment. Standard commercial property policies only cover damage from external causes (fire, theft, etc.) and specifically exclude internal breakdown. For any business dependent on equipment, this gap is critical to fill.
Building coverage should equal the full replacement cost at current construction prices — not market value or assessed value. Business personal property coverage should cover everything inside at replacement value. Many policies include a coinsurance clause that penalizes you for underinsuring — we review your limits carefully to avoid this and ensure your coverage actually matches your exposure.
Standard commercial property policies cover property at the listed location only. Tools and equipment taken to job sites, property in transit, or items in vehicles are typically not covered. An inland marine policy or contractors equipment floater fills this gap — covering your property wherever it goes.
Free commercial property review.
All California industries.
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