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 California, commercial property insurance is designed to cover losses and damages to a business's physical assets, such as buildings and their contents, from perils like fire, burst pipes, storms, theft, and vandalism. Standard policies typically include coverage for the structure itself, inventory, equipment, furniture, and other business property. However, it's important to note that standard commercial property insurance policies do not cover damage from earthquakes and floods. These natural disasters require separate or additional coverage. Business owners in California often need to purchase separate earthquake insurance, especially given the state's high seismic activity. Similarly, flood insurance must be obtained separately, typically through the National Flood Insurance Program (NFIP) or a private insurer. It's crucial for businesses to carefully review their policies and consider their specific risks to ensure they have adequate protection against potential losses.