What does commercial property insurance cover?

Commercial property insurance saves tech leaders more grief when the tech itself goes missing.

Example: Burglars break into an office park and take printers, computers, and tablets from the headquarters of a digital marketing agency. The agency’s commercial property insurance policy pays for the replacement of the stolen items.

Business owners do their best to protect their property from damage, but sometimes Mother Nature has other plans. Check your policy for specifics, as not all types of weather damage are covered.

Example: A leak in the roof at a web hosting company drenches the company’s conference room technology and round-table office furniture. The company’s commercial property policy pays for replacement of the damaged items so it can continue its business.

Sometimes a simple mistake can result in property damage. Even when you or an employee is to blame, commercial property insurance can help pay for repairs.

Example: An IT consulting agency employee gets distracted by a conversation in the office kitchen, burns their popcorn, and sets off the smoke alarm. The sprinklers turn on, damaging paperwork and several computers. Commercial property insurance pays to replace the lost assets.

Commercial property insurance covers the cost of repairing or replacing windows, external walls, doors, or other items that are vandalized.

Example: The manager of a software development business gets a call from the local police informing her about vandalism at the business’s building. Several windows were smashed and the front door was spray painted. The company’s commercial property insurance covers the cost of repairing the windows and repainting the door.

Commercial property insurance covers the cost of replacing or repairing damaged property. It does not cover relocation due to serious damage. Business interruption insurance covers lost revenue and expenses in the event a business is forced to relocate or pause its operations because of property damage.

Example: A fire damages the headquarters of an app development startup. While the building is undergoing restoration, business interruption insurance covers the costs of operating the company out of a temporary space.

Workers' compensation insurance covers medical expenses when an employee is injured at work. It also provides the employee with partial wages during recovery.

Example: An employee at an IT staffing agency catches the corner of a table and falls, suffering a concussion. The agency’s workers’ compensation policy covers the cost of the emergency room visit and other medical bills. It also pays part of the wages lost during the week the employee was unable to work.

Commercial property insurance does not protect tech companies from the growing risk of cyberattacks and data breaches. Instead, business owners should consider cyber liability insurance, which is often bundled with errors and omissions insurance (E&O).

Example: A cyberattack at a database administration company exposes the Social Security numbers of several clients. The company’s cyber liability policy pays for the cost of contacting affected clients and supplying them with fraud monitoring services for one year after the breach.

Though commercial property insurance protects your tech company's office, equipment, and supplies, it does not cover vehicles. Commercial auto insurance is required in almost every state for business-owned vehicles.

Example: A computer repair technician driving a company truck is struck by a sedan on the way to an appointment. The company’s commercial auto policy includes collision coverage, so it pays for the vehicle damage. It would also provide coverage if the other driver filed a lawsuit.