Also known as: business property insurance · commercial building insurance · business property coverage
Commercial property insurance covers physical assets your business owns or leases — equipment, office space, inventory — when they are damaged, destroyed, or stolen.
Commercial property insurance reimburses your business for the cost of repairing or replacing physical assets after a covered loss such as fire, theft, vandalism, or certain weather events. A standard commercial property policy covers the building (if owned), business personal property (equipment, furniture, inventory), and sometimes business income lost while the property is being restored. For most startups — especially those leasing office space — the critical coverage is business personal property: laptops, servers, networking gear, and office equipment. Landlords typically carry insurance on the building itself; tenants are responsible for their own contents. If your lease requires you to carry property coverage, your landlord's requirement will appear in the lease's insurance exhibit.
Office leases often require "commercial property insurance covering tenant improvements and business personal property with limits no less than replacement cost value."
Yes — business personal property coverage within a commercial property policy covers laptops, servers, monitors, and other equipment your company owns, up to the policy limit. Coverage applies to covered perils like theft, fire, and accidental damage at your office location. Equipment kept at employees' homes may require a separate endorsement or inland marine policy.
Commercial property insurance covers damage to things your business owns — your equipment, office contents, and inventory. General liability covers claims made against your business by third parties — for example, a client who slips at your office or alleges your work caused them financial harm. Most businesses need both; a Business Owner's Policy (BOP) bundles them together at a lower combined cost.
Usually yes, for two reasons: (1) your lease almost certainly requires it, and (2) your landlord's policy covers the building but not your contents. Even in a co-working space, your laptops and equipment are not covered by the building's insurance. A basic business personal property policy for a small startup typically costs $300–$800/year.
A Business Owner's Policy (BOP) bundles commercial property insurance and general liability into a single, discounted policy. It's the most common entry-level commercial insurance package for small businesses. BOPs are available for businesses that meet certain eligibility criteria (typically under $5M revenue, standard-risk premises). Startups with high professional liability exposure usually need separate Tech E&O and Cyber policies on top of the BOP.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.