Commercial property insurance can cover the buildings that a business owns – along with their┬ácontents and inventory – against physical loss or damage.

If you don’t own your building, you’ll still need contents coverage. In most policies, commercial property insurance for business contents covers furniture, fixtures, inventory, office equipment, and other supplies stored at your facility or off-premises. You may insure those items for replacement cost or for actual cash value (ACV), which pays only for the depreciated value of the property.

Replacement cost policies have higher premiums, but they can help your business recover from a loss faster, since you can replace all of the lost or damaged property with new items. If you lease some of the equipment at your business, the leasing company may require that you insure the property at replacement value.