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 Massachusetts, commercial property insurance is designed to safeguard businesses against the loss or damage of physical assets such as buildings, contents, and other property integral to business operations. This type of insurance typically covers perils like fire, water damage from burst pipes, storms, theft, and vandalism. However, it's important to note that standard commercial property policies do not usually cover earthquake and flood damage. Business owners seeking protection from these specific natural disasters must typically purchase additional coverage or endorsements to their existing policy. The exact scope of coverage, exclusions, and the process for adding extra protection for earthquakes and floods can vary among insurance providers, and it's advisable for businesses to review their policies carefully and consult with an attorney or insurance agent to ensure they have the appropriate level of coverage for their needs.