Commercial Property Insurance

Commercial property insurance includes all forms of insurance covering property loss exposures of both business and non-profit organizations.  The most common commercial property coverages are provided under standard forms developed by Insurance Services Office, Inc. (ISO) or the American Association of Insurance Services (AAIS).  In many instances, an organization’s property is provided through “package policy.”  A package policy ordinarily provides different types of coverage (e.g., property insurance and liability insurance).  A monoline policy, in contrast, provides only one distinct type of coverage.  The most common form of commercial property insurance is the Commercial Package Policy printed by ISO since 1986.  Commercial property insurance can consist of:

  1.  Building and contents insurance which provides coverage on insured building and the property contained in the buildings.
  2.  Machinery insurance covers steam boilers, pressure vessels, and various types of machinery such as air conditioning equipment, air compressors, turbines and all types of production machines.
  3.  Commercial crime insurance covers causes of loss generally excluded by building and contents insurance, including losses caused by employee dishonesty, forgery, theft, burglary, robbery, and extortion.  Crime insurance usually covers both money and securities.
  4.  Commercial inland marine insurance covers a wide range of loss exposures, which usually involve some element of transportation or communications.  Examples of inland marine exposures are property in transit, mobile equipment, property being installed by a contractor, bridges, and radio towers.
  5.  Farm insurance covers the farmer’s residential loss exposures (dwelling and household personal property) and business loss exposures.  Farm buildings and farm personal property, including livestock, are usually insured under one form.
  6.  Other property coverages include aircraft insurance, marine vessel and cargo insurance, condominiums, builders risk insurance, business income, commercial flood, commercial credit, commercial title, and difference in conditions insurance.