Last Updated: February 16, 2024, 11:45 am by TRUiC Team

Small Business Property Insurance

Small business property insurance, also known as commercial property insurance, protects your small business's property from damage, loss, and theft.

We’ll explain your options and help you find the right business property policy at the best price.

Recommended: Next Insurance combines a high level of protection with the best premiums. Get an online quote.

What Is Commercial Property Insurance? Image

How Much Does Small Business Property Insurance Cost?

The cost of small business property insurance depends on the size of your business, the location of your business, the type of business you own, and the coverage you choose. 

On average, small business property insurance costs between $1,000 and $3,000 per year. The cost can be higher or lower depending on your specific circumstances.

You may be able to save money by bundling your commercial property insurance with other types of insurance, such as:

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Small Business Property Insurance Companies

There are three ways to find insurance and get a quote in today’s marketplace: you can call a traditional insurer, create an online quote with a strictly online insurer, or shop all of them on an online marketplace.

Traditional Insurers

Business owners who prefer to work directly with an agent should explore a reputable insurer like The Hartford or Hiscox.

The Hartford offers traditional brick-and-mortar service, longevity, and solid customer service. As a more traditional provider, the premiums may be higher than their online counterparts, and the claims process is generally more arduous.

Online Insurers

Our top-reviewed online provider is Next Insurance

Next specializes in small business policies. Next leverages technology and a strictly online presence to offer the lowest premium rates. 

Online insurers often depend on AI for policy placement and claims processing. The result is arguably more accurate results and a smoother process.

Online Marketplaces

Online insurance marketplaces, like Tivly, allow business owners to shop across an array of providers. Marketplaces aren’t for the faint of heart, but if you can sort through multiple offers without feeling overwhelmed, this may be the solution for you.

How to Purchase Small Business Property Insurance

Purchasing small business property insurance is relatively straightforward. You can begin by researching insurance companies online or by contacting a local insurance agent. They will be able to provide you with information about coverage options, costs, and discounts.

Here are the steps on how to purchase small business property insurance:

  1. Get quotes from multiple insurance companies. Many different insurance companies offer small business property insurance, so it's important to get quotes from multiple companies before making a decision.
  2. Compare rates and coverage options. Once you have a few quotes, compare the rates and coverage options each company offers. Make sure to understand the policy terms so that you know what is and is not covered.
  3. Choose an insurance policy that meets your needs. Once you have compared rates and coverage options, choose an insurance policy that meets your needs. Be sure to read the policy carefully before signing it.

Tips for Purchasing Small Business Property Insurance

  • Consider your business's needs. Think about the type of property you own, the value of your assets, and the risks your business faces.
  • Ask for help from an insurance agent. If you need help determining what type of small business property insurance you need, an insurance agent can help you. An insurance agent can help you compare rates and coverage options, and they can answer any questions you have about the policy.
  • Shop around. Don't just buy the first small business property insurance policy you see. Shop around and compare rates from different companies before you make a decision.
  • Read the policy carefully. Before you sign a small business property insurance policy, be sure to read it carefully. Make sure you understand the terms of the policy so that you know what is and is not covered.

By following these steps, you can purchase small business property insurance that will protect your business's assets from damage, loss, and employee theft.

Why Commercial Property Insurance Is Important for Small Businesses

Small business owners often underestimate the importance of commercial property insurance. They may believe that their business is too small to require coverage, or they assume that their personal insurance policy will cover any damages or losses. Unfortunately, this is not the case. 

Without commercial property insurance, small business owners put themselves at risk of financial ruin in the event of an unexpected disaster.

Commercial property insurance can cover a wide range of incidents, including fire, theft, vandalism, and weather-related damage. These incidents can cause significant damage to your business property, such as your building, inventory, equipment, and furniture. 

Without proper insurance coverage, you may have to pay out of pocket for repairs or replacements, which can be incredibly expensive and may even force your business to close.

What Commercial Property Insurance Covers

Small business commercial property insurance covers three main areas:

  1. Building Coverage: This type of coverage protects the physical structure of your business, including walls, roofs, and floors.
  2. Business Personal Property (BPP) Coverage: BPP coverage protects the contents of your business, including inventory, equipment, and furniture.
  3. Business Income Coverage: This coverage provides financial protection if your business experiences a loss of income due to a covered event, such as a fire or flood.

Who Needs Commercial Property Insurance?

If you own a small business, you likely need commercial property insurance. This is especially true if you own a physical location, such as a storefront or office building. 

Even if you operate your business out of your home, you may still need commercial property insurance to protect your business assets.

What’s Not Covered by Commercial Property Insurance?

While commercial property insurance can provide valuable protection for your business, it does not cover everything. 

For example, it typically does not cover damages caused by floods, earthquakes, or acts of terrorism. If you live in an area that is prone to these types of events, you may need to purchase additional insurance coverage.

Commercial property insurance also does not cover accounts receivable, which is money that is owed to your business by customers who have not yet paid their bills. To protect against this type of loss, you may need to purchase accounts receivable insurance.


Commercial property insurance protects small businesses from financial loss due to damage or theft of their property. It typically covers the building, business personal property, and business income.

Yes, you can often combine your commercial property insurance with other types of insurance, such as liability insurance or workers' compensation insurance. This may result in lower overall costs.

Exclusions vary by policy but typically include damages caused by floods, earthquakes, or acts of terrorism. Accounts receivable are also not covered.

You can learn more about commercial property insurance by researching online or contacting a local insurance agent. They will be able to provide you with information about coverage options, costs, and discounts.