Building coverage
The structure itself if owned by the business, including permanently installed fixtures, machinery, and equipment. Replacement cost coverage is standard; actual cash value sometimes applies to older or specialty buildings.
Commercial Property Insurance
Commercial Property Insurance in Florida and Georgia
Standalone commercial property coverage for buildings, business personal property, business income, equipment breakdown, and tenant improvements. Standard admitted carriers for in-class properties; specialty and excess and surplus (E&S) markets for coastal, higher-value, or non-standard exposure. We confirm valuation, coverage forms, and hurricane deductibles before binding so the policy actually responds at claim time.
Why this matters
The right structure changes with property value, exposure, and class.
Commercial property is straightforward conceptually but has more nuance than almost any other commercial line. Coverage form (basic, broad, or special), valuation method (replacement cost vs actual cash value), coinsurance percentage, deductible structure (especially separate hurricane and wind deductibles in Florida), included sub-limits, and optional endorsements all affect what the policy actually pays at claim time. Two policies with identical headline limits can pay very differently for the same loss based on these underlying details.
Standalone commercial property is the right structure when your business doesn't qualify for a BOP, when you need property-only coverage (the GL is written elsewhere), when you need coverage forms or limits beyond BOP availability, or when your property value puts you above BOP eligibility thresholds. For Florida coastal properties and higher-value commercial buildings, we often access specialty markets through wholesale brokers (Bass Underwriters, Bridge Specialty) to find the right capacity at the right price. The goal is always coverage that actually responds at claim time, with no surprises at the worst possible moment.
What's covered
What commercial property includes.
Business personal property
Contents, equipment, inventory, furniture, fixtures, supplies, and movable machinery. Typically covered at replacement cost, with sub-limits for specific categories (electronic data, valuable papers, off-premises property).
Improvements & betterments
Tenant improvements made to leased space (built-out walls, custom flooring, kitchen equipment, signage). Coverage protects the tenant's investment in modifications they wouldn't take with them at lease end.
Business income & extra expense
Lost revenue and continuing expenses during a covered shutdown, plus extra expenses to continue operations at a temporary location or with reduced capacity. Typically a 12-month period of restoration, longer available.
Equipment breakdown
Coverage for mechanical or electrical breakdown of business equipment (HVAC, refrigeration, computer systems, production equipment) and resulting business income loss. Often included or added at modest premium.
Optional endorsements
Ordinance or law (rebuilding to current code), debris removal, signs, outdoor property, fine arts, electronic data, accounts receivable, and many class-specific extensions available as endorsements.
Gaps
What commercial property doesn't cover.
Flood (including storm surge)
Standard commercial property excludes flood, defined as rising water, storm surge, and water from external sources. NFIP commercial flood or private flood policies fill this gap. Particularly important for coastal and low-lying inland properties in Florida.
Earthquake
Standard property forms exclude earthquake. Available as a separate endorsement or policy where offered. Earthquake exposure in Florida and Georgia is lower than in seismic zones but is not zero.
General liability (third-party claims)
Commercial property covers damage to your property; it doesn't cover liability claims from third parties. A separate general liability policy is needed for premises liability, products and completed operations, and personal and advertising injury.
Vehicles and mobile equipment
Owned commercial vehicles need a separate commercial auto policy. Mobile equipment that's not road-legal (forklifts, certain construction equipment) is typically covered under inland marine rather than commercial property.
Wear and tear, gradual damage
Property forms exclude wear and tear, gradual deterioration, settling, faulty workmanship, and similar non-sudden causes of loss. Insurance covers sudden and accidental events, not maintenance issues or design flaws.
Mold (with limited exceptions)
Most commercial property forms exclude or significantly limit mold coverage. Some carriers offer mold remediation endorsements with sub-limits. Mold prevention through prompt water damage response is generally more important than chasing limited insurance coverage.
State knowledge
What to know about commercial property in Florida and Georgia.
Florida
Separate hurricane deductibles
Tier-1 wind zones
Citizens for hard-to-place property
Florida commercial property comes with several Florida-specific structural features. Hurricane / named storm deductibles are almost always separate from the AOP deductible and are expressed as a percentage of building or property value (typically 2% to 10%). Coastal Florida properties often face tier-1 wind exposure with higher percentage deductibles than inland properties. Some hard-to-place commercial properties (older buildings, coastal exposure, claims history) may need Citizens Property Insurance Corporation, the state's insurer of last resort, when standard and specialty markets can't accommodate the risk. Citizens commercial property is available but is intended as a last resort, not a first option. Florida's HB 837 (2022) tort reform changes don't directly affect commercial property but do affect the broader litigation environment around property claims.
Georgia
Standard property environment
Coastal exposure on the east
Inland tornado risk
Georgia commercial property is more conventional than Florida coastal exposure. Coastal Georgia properties (Savannah, Brunswick, Jekyll Island) face hurricane and wind exposure with similar (though sometimes more moderate) deductible structures than Florida coastal. Inland Georgia has meaningful tornado exposure, particularly in northern and central Georgia, which carriers price into commercial property in those areas. Most Florida commercial property carriers also write Georgia, so the carrier landscape and coverage options are largely parallel for our two-state service area.
Forms and valuation
Coverage forms and valuation choices.
Commercial property is written on one of three main coverage forms. Basic form (CP 10 10) covers only named perils: fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot, vandalism, sprinkler leakage, sinkhole collapse, volcanic action. Broad form (CP 10 20) adds several perils to basic: falling objects, weight of snow/ice/sleet, water damage from plumbing, certain collapse coverage. Special form (CP 10 30) is open perils, covering all causes of loss except those specifically excluded.
Special form is broadest and is usually the right choice for commercial property when available. Some older buildings, higher-risk classes, or coastal coastal exposure may only qualify for basic or broad form, particularly through specialty markets. The form on the policy matters at claim time: damage from a peril not listed on basic form simply isn't covered.
Valuation method also affects what the policy pays. Replacement cost (RC) pays the cost to replace property with new property of similar kind and quality without depreciation. Actual cash value (ACV) pays replacement cost minus depreciation, which can be significantly lower especially on older property. Most commercial property is written on RC, but some older buildings or specialty property may only be eligible for ACV. We confirm valuation on every quote.
Coinsurance requires the property to be insured to a specified percentage (80%, 90%, or 100%) of full replacement value. Underinsured property triggers a proportional reduction at claim time. Avoiding coinsurance penalties is one of the most important reasons to value property accurately at quote time, not just minimize premium by underinsuring.
Broader, preferred form
Special form + RC + 80% coinsurance
Open-perils special form coverage, replacement cost valuation, 80% coinsurance. The standard structure for most commercial property when available, providing broadest protection at accurate valuation.
Narrower, lower-cost option
Basic form + ACV (sometimes the only option)
Named-perils basic form with actual cash value valuation. Used for older properties, certain higher-risk classes, or specialty market placements. Lower premium but significantly narrower coverage.
Common scenarios
Situations that change commercial property structure.
Owner-occupied commercial building
The business owns the building and occupies it. Building coverage at full replacement cost, contents, business income, and equipment breakdown typically combine into one structure. Often eligible for BOP if the business otherwise qualifies.
Tenant in leased commercial space
No building coverage needed (landlord covers the structure), but tenant improvements and betterments, contents, equipment, and business income are still the tenant's responsibility. Lease terms usually specify minimum coverage requirements.
Landlord with commercial tenant
Landlord owns and insures the building; tenant insures their contents and improvements. Coordination matters at claim time: who covers what is sometimes blurry without clear lease and policy alignment. We work through both sides of these arrangements.
Coastal Florida property
Coastal exposure changes carrier appetite, deductible structure, and sometimes coverage form availability. Specialty markets (Bass Underwriters, Bridge Specialty) and occasionally Citizens come into play for hard-to-place coastal commercial property.
Restaurant with significant kitchen equipment
Restaurants combine building (if owned), tenant improvements (if leased), business personal property (kitchen equipment, refrigeration, contents), business income, and equipment breakdown. Equipment breakdown is particularly important for refrigeration and kitchen systems.
Manufacturer or warehouse
Manufacturing and warehouse operations have significant property values (machinery, inventory, raw materials) and often combined business income exposure. Class code matters significantly for both pricing and carrier appetite.
Premium and pricing
What goes into your commercial property premium.
What affects your premium (the COPE factors)
Commercial property premium is driven by the COPE factors: Construction (frame, joisted masonry, masonry non-combustible, fire-resistive), Occupancy (what the business does in the space and what's stored there), Protection (fire suppression, sprinklers, alarms, central station monitoring, distance to fire department), and Exposure (neighboring properties, location, wind/flood zone, hail and tornado risk).
Construction matters significantly: a fire-resistive building rates much more favorably than frame for fire perils. Older buildings (50+ years) often face additional underwriting scrutiny for electrical systems, plumbing, roof age, and HVAC. Buildings with proper fire suppression (sprinklers, central station alarms) typically receive meaningful credit.
Occupancy is the second-biggest variable. Restaurant kitchens, woodworking shops, body shops, dry cleaners, and similar combustible operations rate higher than offices, retail, or warehouses with similar building characteristics. Higher-value contents and inventory also push premium up on the BPP side.
Location and exposure complete the picture. Florida coastal locations face hurricane premium loads and separate hurricane deductibles. Properties near other risky occupancies (gas stations, restaurants, body shops next door) can face slightly higher exposure rates. Inland tornado-belt locations face additional wind premium.
Ways to manage premium
Commercial property offers several premium levers across construction, protection, deductibles, and coverage selection.
Higher all-other-perils deductible
Moving the AOP deductible from $1,000 to $2,500 or $5,000 reduces premium meaningfully. Hurricane deductibles are typically separate and based on percentage rather than dollar amount.
Protection investments
Sprinkler systems, central station alarms, fire suppression in kitchens, and similar protection investments often produce meaningful premium credits and may make the difference between admitted and E&S placement.
Bundle with GL or BOP
Many carriers offer modest credits when commercial property is bundled with GL or workers compensation. For eligible businesses, BOP often combines GL and property at better pricing than buying separately.
Right-size the business income limit
Business income limits should match actual revenue and realistic recovery time. Over-insuring business income wastes premium; under-insuring leaves the business exposed during long recoveries.
Accurate property valuation matters more on commercial property than almost any other line because of coinsurance. Underinsuring property to save premium creates significant exposure at claim time if a covered loss occurs. We work with business owners to value property accurately at quote time.
Decisions
How to think about the commercial property structure.
Standalone commercial property or BOP?
If your business is eligible for a BOP and the bundled structure works (GL plus property plus business income in one policy), BOP is typically more cost-effective. Standalone commercial property is the right choice when you're above BOP eligibility, when you need property-only (GL is written elsewhere), or when you need coverage forms, limits, or specific endorsements not available on a BOP. Many mid-to-large businesses combine standalone property with standalone GL in a Commercial Package Policy (CPP).
Replacement cost or actual cash value?
Replacement cost is the right choice for almost all commercial property when available. Actual cash value pays significantly less on older property because of depreciation. ACV is sometimes the only option for older or higher-risk buildings (especially through specialty markets), in which case it's a trade-off between affordability and adequate recovery at claim time. We explain the trade-off clearly when ACV is the only available option.
What property values should I insure for?
Building coverage should be at full replacement cost, not market value and not depreciated value. Business personal property should cover the actual cost to replace contents, equipment, and inventory at today's prices. We work with business owners to estimate accurate values using construction cost data, equipment replacement cost, and inventory valuation. Underinsuring to save premium creates coinsurance exposure at claim time that typically dwarfs any premium savings.
What about flood and earthquake?
Standard commercial property excludes both. Flood is critical for any property in or near a flood zone, near a body of water, or in low-lying inland areas. NFIP commercial flood is available up to $500K building / $500K contents; private flood markets often provide higher limits and broader coverage. Earthquake is more situational in Florida and Georgia (low but not zero exposure) and is typically considered for higher-value properties or specific operations.
Carriers
Carriers we work with for commercial property.
We write commercial property through standard admitted markets for in-class properties and through wholesale brokers for specialty, coastal, or higher-value placements. The Hartford writes commercial property across most standard classes. Hiscox handles small business property and specialty risks. Specialty carriers and wholesale brokers (Bass Underwriters, Bridge Specialty, Ryan Specialty) handle coastal Florida property, larger commercial buildings, and higher-risk occupancies that fall outside standard admitted appetite.
For hard-to-place commercial property in Florida (older coastal buildings, properties with claims history, specialty occupancies that admitted carriers won't write), Citizens Property Insurance Corporation provides a last-resort option when standard and specialty markets can't accommodate the risk. Citizens is typically a fallback, not a first choice, but it serves a real purpose for property that would otherwise be uninsurable.
The Hartford
Hiscox
Bass Underwriters
Bridge Specialty
Ryan Specialty
Citizens (last resort)
Carrier appointments and program availability vary by line, state, class code, and property characteristics. Quotes and placement depend on underwriting eligibility, construction, occupancy, protection, exposure, and claims history. Higher-risk or specialty classes are typically placed through wholesale brokers in excess and surplus (E&S) markets. Citizens is a last-resort option when standard and specialty markets are unavailable.
Questions
Commercial property questions we hear a lot.
What is commercial property insurance?
Commercial property insurance covers your business's physical assets against damage or loss: the building you own, your business personal property (contents, equipment, inventory, furniture, fixtures, supplies), improvements and betterments to leased space, and often business income coverage that replaces lost revenue during a covered shutdown. It's a foundational commercial coverage for any business with property to protect, whether owned or leased.
What's the difference between commercial property and a BOP?
A BOP bundles commercial property with general liability and business income in a single packaged policy at typically efficient pricing. Standalone commercial property is the right choice when your business doesn't qualify for BOP (larger operations, higher-risk classes, specialty exposures), when you need property-only coverage, or when you need coverage forms or limits beyond what a BOP offers. Many mid-to-large businesses carry commercial property as one component of a Commercial Package Policy (CPP) that bundles multiple monoline coverages.
What does commercial property cover?
Standard commercial property includes building coverage (the structure itself if owned), business personal property (contents, equipment, inventory, furniture, fixtures, supplies, machinery), tenant improvements and betterments (improvements made to leased space), and often business income / extra expense coverage. Optional or endorsed coverages include equipment breakdown, ordinance or law (rebuilding to current code), debris removal, signs, outdoor property, and a wide range of class-specific extensions.
What perils does commercial property cover?
Commercial property is written on three main coverage forms: basic form (named perils only: fire, lightning, explosion, vandalism, sprinkler leakage, etc.), broad form (basic perils plus several more including falling objects, weight of snow/ice, water damage from plumbing), and special form (open perils: covers all causes of loss except those specifically excluded). Special form is the broadest and usually preferred for commercial property; basic form is sometimes used for older or higher-risk buildings where special form isn't available.
What perils are excluded from commercial property?
Standard exclusions include flood (rising water, including storm surge), earthquake, war, nuclear hazard, ordinance or law without endorsement, wear and tear, mold (with limited exceptions), pollution, intentional acts, and certain types of mechanical breakdown without equipment breakdown coverage. Flood is the most commonly misunderstood exclusion: standard commercial property covers wind-driven rain from a hurricane but not rising water or storm surge from the same storm. NFIP or private flood is needed for that exposure.
How do Florida hurricane deductibles work on commercial property?
Florida commercial property policies almost always carry a separate hurricane / named storm deductible, expressed as a percentage of the building or property value (often 2% to 10% depending on location and carrier). The hurricane deductible applies only to wind damage from a named storm and is significantly higher than the standard all-other-perils (AOP) deductible. A 5% hurricane deductible on a $1M building means the business pays the first $50,000 of named storm wind damage out of pocket before coverage responds.
What's the difference between replacement cost and actual cash value?
Replacement cost (RC) coverage pays the cost to replace the property with new property of similar kind and quality, without deduction for depreciation. Actual cash value (ACV) pays replacement cost minus depreciation, often resulting in significantly lower payouts especially on older property. Most commercial property is written on replacement cost for the building and business personal property, but some older or specialty buildings may only be eligible for ACV. We confirm valuation method on every property quote.
What is coinsurance and why does it matter?
Coinsurance requires the property to be insured to a specified percentage (typically 80%, 90%, or 100%) of its full replacement value. If the property is underinsured below the coinsurance percentage, claims are paid at a proportional reduction. For example, with 80% coinsurance and a $1M building insured for only $600,000 (60% of value, below the 80% requirement), a $100,000 claim could be reduced to $75,000 ($100,000 × 75%). Coinsurance penalties are one of the most common commercial property disputes and one of the main reasons to insure to full replacement value.
Does commercial property cover business interruption / lost income?
Business income / business interruption coverage is typically included on commercial property policies (and BOPs) and replaces lost revenue plus continuing expenses during a covered shutdown. Coverage typically runs for a "period of restoration": the time it takes to repair or replace the damaged property and resume operations, subject to policy limits. Extra expense coverage pays additional costs to keep the business running at a temporary location or with reduced capacity. Both are critical for any business that would suffer significant revenue loss from a property loss.
What's equipment breakdown coverage?
Equipment breakdown coverage (sometimes called boiler and machinery) covers losses from mechanical or electrical breakdown of business equipment: HVAC systems, refrigeration, electrical systems, production equipment, computer systems. Standard commercial property excludes most internal mechanical breakdown, so equipment breakdown coverage fills a meaningful gap, especially for businesses with significant equipment investment (restaurants, manufacturers, medical, data-dependent operations).
What about inland marine for tools and equipment in transit?
Inland marine policies (despite the name, they have little to do with water) cover property in transit, mobile equipment, contractor's tools, computers and other portable electronics, fine arts, and other property that moves around or that has specialty exposure. For contractors with significant tools and equipment carried between job sites, inland marine is often the right coverage rather than relying on commercial property at the location of the business.
What about flood and earthquake for commercial property?
Standard commercial property excludes both flood and earthquake. Flood coverage is available through the federal National Flood Insurance Program (NFIP) up to $500K building / $500K contents, or through private flood markets that can provide higher limits and broader coverage. Earthquake is typically a separate endorsement or policy in jurisdictions where it's offered. Florida coastal and low-lying inland properties commonly benefit from flood coverage above NFIP limits through private markets.
How are commercial property premiums calculated?
Commercial property premium is driven by the COPE factors: Construction (frame, masonry, fire-resistive), Occupancy (what the business does, office, retail, restaurant, manufacturing), Protection (fire suppression, sprinklers, alarms, distance to fire department), and Exposure (neighboring properties, location, wind/flood zone). Higher property values, higher business income limits, broader coverage forms, and higher-risk perils all push premium up. Claims history and prior insurance history also affect both pricing and carrier appetite.
How fast can I get a commercial property quote?
Simple commercial property quotes (smaller, lower-risk, in-class properties) can typically be turned in one to two business days. Higher-value properties, coastal properties, properties with significant claims history, or specialty classes may take longer because of underwriting requirements and sometimes physical inspection. Coastal Florida property quotes in particular may require additional underwriting time to access specialty markets if standard carriers can't accommodate the exposure.
Related
Coverage that pairs with commercial property.
Ready to talk through your commercial property options?
Tell us about your property, give us a call, or request a free quote. We'll confirm coverage forms, valuation, and hurricane deductible structure across our admitted and specialty markets, and recommend the right structure for your operation.