The main two things that commercial property insurance cover are buildings and personal business property. If you own the building that your business runs out of, then coverage is available for that building. For business owners who rent space, there are insurance options that specifically cover your property within the rental space.

Personal business property protection covers things such as your inventory, supplies, furnishings, and equipment. This can include items within your business space, and off-site. For example, if you are a professional photographer who carries expensive camera equipment with you to various locations for photo shoots, then damaged will be cover under this insurance.

The cost of business property insurance fluctuates depending on the value of the property to be insured, the location of the business, the coverage limits, and the deductible you choose. There are several factors affecting the cost of commercial property insurance, but mostly the small businesses will pay $500 to $1,000 per annum in premium.

Very few insurance providers will allow you to include commercial property insurance in a business owner’s policy, which is a bundled package of multiple insurance types. The cost of the package is often less than the underlying policies if bought separately.

The most essential features that affect the cost of business property insurance include:

Geography

All from the land value of your business location to local crime rates can affect the annual cost of your premium.

Safety and Security

This inflates on the location aspect. Is your commercial property found in a high crime rate area? Are there dangerous materials stored in your building or nearby?

Size of Business Premises

A large commercial building will cost more to cover than a single unit office space.

Age of Building

Old buildings can be more susceptible to definite types of damage, so they may cost more to insure.

Type of Equipment

Heavyweight industrial equipment will cost more to protect than an at-home business’ sewing machine.

Age of Equipment

You may pay higher premiums if your equipment is hard to repair because of scarce parts or if it is more likely to break down because of heavy use.