Commercial property insurance protects a commercial building and its contents—such as inventory, computers, telephone systems, documents, furniture, HVAC systems, machinery, and equipment—as well as exterior features such as signs, fences, gates, lighting, and landscaping—from damage caused by fire, burst pipes, storms, theft, and vandalism.

Damage caused by earthquakes and floods is generally not covered by a commercial property insurance policy unless coverage for those natural disasters is added to the policy.

In Alabama, commercial property insurance is designed to safeguard businesses against losses to their physical assets due to various risks. This type of insurance typically covers the building itself, its contents, and other property related to the business, such as inventory, technology, and outdoor features. Standard policies cover damages from events like fire, water damage (excluding floods), storms (excluding earthquakes), theft, and vandalism. However, it's important to note that standard commercial property insurance policies in Alabama do not automatically cover earthquake and flood damage. Business owners interested in protecting their property from these specific natural disasters must purchase additional coverage or endorsements to their existing policy. This is particularly relevant in Alabama, where certain areas may be more prone to these risks. An attorney specializing in insurance law can provide detailed advice on policy options and the extent of coverage necessary for a particular commercial property.