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Business insurance · Philadelphia
Protect your building, equipment and inventory. Compare commercial property options from multiple carriers with a local, independent Philadelphia agent.
Your building, equipment, furniture and inventory are often among the biggest investments your business makes. Commercial property insurance helps pay to repair or replace them after a covered loss, such as a fire or storm damage. Terra Insurance Services is an independent agency on Cottman Avenue, so we can compare commercial property options from multiple carriers and help you put together coverage that fits your building, your lease and the way you work.
Every policy is different, but commercial property insurance generally covers physical loss or damage to property your business owns or is responsible for, when it’s caused by a covered peril. Depending on the policy, that can include:
Your building
If you own the building, the structure itself, along with permanently installed fixtures, machinery and equipment.
Business personal property
Furniture, computers, tools, machinery, stock and inventory kept at your location.
Improvements to rented space
If you lease, the build-out you paid for, such as new flooring, shelving or a remodeled storefront, can often be covered as part of your business property.
Property of others
Customers’ items in your care, such as equipment left with you for repair, up to the limits in your policy.
Business income and extra expense
Often added to the policy, this can help replace lost income and pay the extra costs of staying open if a covered loss forces you to close or move temporarily.
What’s covered, your limits and your deductibles all depend on the policy and the carrier, so we’ll walk through the details with you before you buy.
Commercial property policies usually use one of three causes-of-loss forms. A basic form covers a named list of perils, such as fire, lightning, explosion, windstorm, hail, smoke and vandalism. A broad form adds a few more, such as certain types of water damage and the weight of snow or ice. A special form covers direct physical loss from any cause that isn’t specifically excluded or limited, which is why many business owners prefer it. Theft, for example, is generally covered only under the special form, and often with limits.
A standard commercial property policy doesn’t cover everything. These are common gaps worth checking:
Flood damage is typically excluded from standard commercial property policies and business owners policies. Separate flood insurance, including coverage through the National Flood Insurance Program, may be available. Learn more about what flood insurance generally covers.
Water that backs up through drains is often excluded or limited unless you add coverage for it.
Mechanical or electrical breakdown of things like heating and cooling systems, boilers, refrigeration or electrical panels generally isn’t covered by the property policy itself, but coverage can often be added.
Many Philadelphia commercial buildings are decades old. After a covered loss, local codes may require upgrades to wiring, plumbing or other systems, and standard policies often provide little or no coverage for those extra costs. Ordinance or law coverage is designed to help fill that gap.
Coverage for property at job sites or in transit is often limited. Inland marine insurance is built for property that moves.
Gradual damage and maintenance issues, such as slow leaks, rot or pests, generally aren’t covered.
Business vehicles need their own coverage. See our guide to commercial vs. personal auto insurance.
If your business owns or uses physical property, commercial property insurance is worth a look. That includes:
Building or doing a major renovation? Construction often needs builders risk insurance, sometimes alongside your existing property policy, so tell your agent before work starts.
Many small businesses get their property coverage through a Business Owners Policy (BOP), which bundles commercial property and general liability insurance, and often business income coverage, into one package. If your business qualifies, a BOP can be a convenient and cost-effective option.
A standalone commercial property policy, or a commercial package policy that combines property with other coverages, may be a better fit in some cases:
Not sure which you need? We’ll look at your business and show you the options available to you. For more on how the pieces fit together, read our guide to a BOP vs. general liability insurance.
Replacement cost generally pays what it costs to repair or replace damaged property with new property of similar kind and quality. Actual cash value subtracts depreciation, so it usually pays less.
Many commercial property policies include a coinsurance clause, often 80% or 90%, that requires you to insure your property for at least that share of its value. If you carry less, a claim can be paid at a reduced amount (see the example below). Some policies offer an agreed value option that suspends the coinsurance clause for the policy term, usually based on a signed statement of values.
A higher deductible usually lowers your premium, but you pay more of each claim yourself.
Think about how long it could realistically take to repair your space and reopen, and choose a limit and time period that fits.
How coinsurance can reduce a claim: an example
Example only. Coinsurance terms and how claims are settled vary by policy and carrier.
There’s no single price for commercial property insurance. Carriers typically look at:
Each carrier weighs these factors differently, which is why comparing quotes from more than one company can help.
We’re based on Cottman Avenue in Philadelphia and work with multiple carriers, so you’re not limited to one company’s policy.
We’ll help you think through what it would cost to rebuild and replace, so you’re less likely to be underinsured.
Send us what your landlord or lender requires, and we’ll help you find coverage that meets those requirements and provide the certificate or evidence of insurance they need.
We can review your property coverage alongside your general liability, workers’ compensation and commercial auto, so the pieces work together. See all of our business insurance options.
Tell us about your business and your property, and a Terra agent will follow up to start your quote. It helps to have the property address, the type of building, its approximate size and age, and what you’d like to insure. Prefer to talk? Call (215) 742-3743.
Terra Insurance Services serves businesses throughout Philadelphia and the surrounding areas from our office at 1879 Cottman Avenue, Philadelphia, PA 19111. We’re open Monday through Friday, 9:00 AM to 5:00 PM. Call or stop by to schedule a free consultation.
Pennsylvania law doesn’t generally require businesses to carry commercial property insurance. However, mortgage lenders usually require it on buildings they finance, and many commercial leases require tenants to insure their improvements and contents. Even when it isn’t required, it can protect your business from a loss that would be hard to absorb.
Usually not. Flood is typically excluded from standard commercial property policies and business owners policies. Separate flood insurance, including coverage through the National Flood Insurance Program, may be available for your building and its contents.
Commercial property insurance covers your building and business property. A business owners policy bundles property coverage with general liability insurance, and often business income coverage, in one package for eligible small businesses. Larger businesses, or those with specialized needs, may need standalone property coverage instead.
Often, yes. Your landlord’s policy generally covers the building, not your furniture, equipment, inventory or the improvements you paid for. Many leases also require tenants to carry their own property and liability coverage.
Generally, enough to rebuild your building and replace your business property at today’s costs, not what you paid or what the building would sell for. If your policy has a coinsurance clause, being underinsured can also reduce a claim payment. A Terra agent can help you estimate your values.
This page is for general educational purposes only and is not insurance or legal advice. Coverage, exclusions, eligibility and pricing vary by policy and carrier, and no quote is a guarantee of price or coverage. Please confirm the details of any policy with a licensed Terra Insurance agent.
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