What companies should you consider for commercial property insurance? These are our best 5 picks after comparing commercial property insurance quotes and policies from 12 companies. Where we could, we entered that we were seeking commercial property insurance for a small bakery with two employees and $100,000 in revenue in Massachusetts to get a quote
- 1. The Hartford: Best Commercial Property Insurance for Franchise Owners and Retailers
- 2. Hiscox: Best Commercial Property Insurance for New Businesses
- 3. Liberty Mutual: Best Commercial Property Insurance for Small Business Owners Who Prefer Working with An Agent
- 4. Nationwide: Best Commercial Property Insurance for Contractors
- 5. Travelers: Best Commercial Property Insurance for Property Owners with Multiple Properties
1. The Hartford: Best Commercial Property Insurance for Franchise Owners and Retailers
The Hartford offers a wide range of protections to help your business get back up and running in case of a fire, theft, or natural disaster. The Hartford offers flexible options so that you can tailor your policy to your business and make adjustments as needed.
The Hartford has a Risk Engineering team that was launched to help businesses determine their risks. They can help you avoid accidents, prevent potential losses, and make suggestions to improve workplace safety.
The Hartford has resources specifically for franchise owners, making it our top pick for such businesses.
The Hartford can offer you a commercial property insurance policy as a standalone policy, or they can combine it with general liability into a business owners policy (BOP). Prices are competitive and the customer reviews are pretty positive.
The Hartford asked a lot of questions before they would give us a quote for our hypothetical bakery. They wanted to know:
- What year the building was built (1952 is what we said)
- Is the building constructed with wood framed exterior walls?
- Does the building have wood joists/rafters in the roof?
- Are the exterior walls constructed of solid masonry materials?
- Is the building rated as “fire resistive”?
- Number of floors
- Have the building’s roof, electrical, HVAC, and plumbing all been updated?
- Year they were modernized?
They quoted us a rate of $1421.00 annually, or $118.42 a month for commercial property insurance.
2. Hiscox: Best Commercial Property Insurance for New Businesses
Hiscox is a new but growing small business insurance provider. Their commercial property policy covers some things that other policies do not, such as:
- Tenant improvements
- Lost business income and extra expenses
- Accounts receivable
- Interruption of computer operations
They have policies that are customizable and flexible. You can buy their insurance either online or through an agent. They have a 14-day money back guarantee, which not many insurance companies offer. They also have online resources for the new business owner, as well as a fairly straightforward process for getting a policy, making them our pick for new owners.
After putting in all of our information, Hiscox told us we would have to call them and provide more information before they could give us a quote. They also insisted we needed general liability insurance even we said we wanted a business owners policy.
3. Liberty Mutual: Best Commercial Property Insurance for Small Business Owners Who Prefer Working with An Agent
Liberty Mutual has several features that make it an appealing option for small business owners.
They have local agents, so they have a personal relationship with you and your business. Since they are local, they have a better understanding of your needs and your community.
They have a flexible range of coverages, so you be sure your business is protected. Regardless of size or industry, Liberty Mutual has coverage that will work for you.
If you live in the Northwest, companies with similar business needs can join together and get reduced policy rates from Liberty Mutual.
Liberty Mutual doesn’t even have an online quote system for business insurance. You are asked to call and speak to an agent and they will help you.
4. Nationwide: Best Commercial Property Insurance for Contractors
Nationwide is a fortune 500 company with over eighty years of experience serving the needs of small businesses.
They have a number of PDF articles for small contractors, which are excellent references. They also have every type of insurance a small contractor might need.
Agents are available 24/7 to answer questions or help you file a claim. They have prevention and loss tools to help prevent claims from happening in the first place.
They received the highest score for overall customer satisfaction in J.D. Power’s commercial insurance study for 2019.
We entered our information for Nationwide and got a message saying we should call so they could help us find a policy.
5. Travelers: Best Commercial Property Insurance for Property Owners with Multiple Properties
Travelers is a huge company that strives to be there for small business owners. They offer flexibility in what coverages you add on, and you can add riders for more comprehensive coverage.
If you are someone who manages property, you know that claims can happen any time of the day or night. Travelers has a 24/7 claims center. They also have one of the largest risk control departments in the industry, so you take them to all of your properties to see where you can lower your risk.
One product they offer is the green building coverage. This is an extension that will pay to meet green standards for your building after you suffer a loss.
MyTravelers for Business in their online app where you can pay your bill, get a copy of your documents, and request certificates.
Travelers doesn’t offer commercial property insurance in all 50 states, however, so if you live in one of the states they don’t insure, you’ll have to look elsewhere.
Traveler’s would also like you to call to get a quote from them.
Each company has its own specifications about their properties. Each insurance company has its specific benefits and weaknesses in its commercial property insurance policies. They also specialize in specific industries. You should shop around and compare quotes from at least 3-5 companies to choose the best policy for your business.
Below are a few FAQs about Commercial Property Insurance
1. Should I combine commercial property insurance with general liability insurance?
If you can, you should. This is called a Business Owners Policy and it offers the protection of both types of insurance at a rate lower than if you were to buy the policies separately.
2. How can I reduce the costs of commercial property insurance?
Insurance companies like to see a building newer than fifty years. If your building is older than this, you can make sure the roof, the HVAC, plumbing and electrical systems have all been updated. Having fire safety equipment and a security system will also save you money. Some insurance companies will go over your business with you and make recommendations on how you can make your office space safer.
3. Is commercial property insurance required by law?
No, but if you lease or rent a space from a landlord, the landlord may require you to have it. Read your lease carefully.
4. What is Business Interruption Insurance? And do I still need it in addition to Commercial Property Insurance?
In the event some catastrophe happens and your business is forced to close temporarily, business interruption insurance will help reimburse you for lost income and get you back on your feet.
Commercial Property Insurance and Business Interruption Insurance are complimenting each other. For example, if your business is closed due to fire. Commercial Property Insurance will cover the damages of the building and other equipment caused by the fire whereas Business Interruption Insurance will cover the lost income during the period when your business is closed. That’s the reason why for small businesses of annual income of less than $1 million, commercial property insurance, general liability insurance, and business interruption insurance are combined into one single policy, called Business Owners Policy (BOP).