Business Property & Income Insurance
Your business depends on more than just a building. Your equipment, inventory, tools, furniture and other property all help keep the business running. And when a covered loss interrupts those operations, your income can be affected too.
Protect More Than Just the Building
When business owners think about commercial property insurance, they often picture the building first. But the building is only part of the picture.
Think about what is inside your business. Computers. Equipment. Furniture. Inventory. Tools. Supplies. Machinery. Improvements you’ve made to the space. Depending on how your business operates, there may also be property that regularly leaves the premises.
Then there is the income your business generates every day. If a covered property loss forces you to temporarily slow down or close, the financial impact can extend beyond the cost of repairing the physical damage.
Business property and income coverage is about looking at that bigger picture.
Business Property & Income Coverage Options
There is not one commercial property policy that works exactly the same way for every business. The right combination depends on what you own, where you operate, what you transport and how your business makes money.
Commercial Property Insurance
Coverage for eligible business property such as buildings, business personal property, equipment, furniture and inventory. The specific property and causes of loss covered depend on the policy.
Explore Commercial Property Insurance →Business Personal Property
Business personal property coverage focuses on the contents your business relies on, including eligible equipment, furniture, inventory, tools and other business property.
Explore Business Personal Property →Inland Marine Insurance
Your property does not always stay at your business address. Inland marine coverage can address eligible equipment, materials and other property while it is being transported, used at a job site or temporarily located elsewhere.
Explore Inland Marine Insurance →Business Income Insurance
A covered property loss can sometimes affect more than the property itself. Business income coverage may help address certain lost income and continuing expenses following a covered interruption, subject to the policy.
Explore Business Income Insurance →Equipment Breakdown Insurance
Some businesses depend heavily on machinery, electrical systems, refrigeration, HVAC equipment or other mechanical equipment. Equipment breakdown coverage can address certain covered equipment failures.
Explore Equipment Breakdown Insurance →Business Owner’s Policy
For eligible small businesses, a BOP can combine important commercial coverages into one policy. A BOP commonly combines commercial property and general liability, with other options available depending on the carrier and policy.
Explore Business Owner’s Policy →How Business Property & Income Coverage Fits Together
The easiest way to think about these coverages is to start with the business itself. What do you own? Where is it located? Where does it go? And what happens financially if a covered loss keeps you from operating normally?
Your Building
The physical location where your business operates may need commercial property coverage.
Your Property
Equipment, furniture, inventory, tools and other eligible contents may need business personal property coverage.
Property on the Move
Equipment and materials that travel to jobsites or other locations may create an inland marine exposure.
Your Income
A covered property loss can interrupt operations and potentially affect business income.
Start With How Your Business Actually Operates
Insurance makes more sense when you start with the business instead of starting with a list of policies.
A contractor may have expensive equipment traveling between job sites. A retailer may have a large inventory investment. A manufacturer may depend on specialized machinery. An office may rely heavily on computers, furniture and tenant improvements.
Those businesses all have property exposures, but they are not necessarily the same exposures.
Questions worth asking
- What physical property would be difficult or expensive to replace?
- How much inventory do you normally have on hand?
- What equipment is essential to your operation?
- Does business property regularly leave your premises?
- Do you have property at temporary locations or job sites?
- How long could your business operate if a covered loss forced you to close temporarily?
What Happens When a Covered Loss Interrupts Your Business?
Imagine a covered property loss damages part of your business. The physical repairs may be only one part of the problem.
You may still have payroll, rent, utilities, loan payments and other ongoing expenses while the business is unable to operate normally. Depending on the policy, business income coverage may help address certain lost income and continuing expenses following a covered loss.
The details matter. Coverage can have waiting periods, limits, time restrictions, exclusions and other conditions that determine when and how benefits apply.
Business income is about more than lost sales
When evaluating this coverage, it can help to think about the expenses that continue even when the doors are temporarily closed.
- Employee payroll
- Rent or lease payments
- Utilities
- Loan or financing obligations
- Other continuing operating expenses
The policy determines which expenses and losses are eligible for coverage.
Could a Business Owner’s Policy Cover These Needs?
For eligible small and medium-sized businesses, a Business Owner’s Policy can package several important commercial coverages together. A BOP commonly combines commercial property and general liability, and business income coverage may be included depending on the policy.
A BOP is not automatically the right fit for every business. Businesses with specialized equipment, commercial vehicles, professional liability exposures or more complex operations may need additional policies.
Business Property & Income Insurance in Texas
Texas businesses range from home-based operations and professional offices to contractors, retailers, restaurants, manufacturers and other commercial operations. The property risks can be very different from one business to another.
That is why we start by understanding how your business operates. We can look at the property you own, the equipment you use, where that property goes and what your business needs to keep operating.
Lavon Insurance is an independent insurance agency serving Texas. We work with multiple insurance carriers and can help you compare available commercial insurance options based on your business and coverage needs.
A local, independent approach
There isn’t a single commercial insurance package that works for every Texas business.
We take the time to understand your operation and then look at available coverage options from multiple carriers.
The goal is simple: help you understand what you’re buying and where additional coverage may be appropriate.
Business Property & Income Insurance FAQs
What is business property insurance?
Business property insurance can help protect eligible commercial property against covered causes of loss. Depending on the policy, this can include buildings, equipment, furniture, inventory and other business personal property.
What is business income insurance?
Business income coverage may help replace certain lost income and eligible continuing expenses when a covered property loss temporarily interrupts business operations. The exact coverage depends on the policy.
Is business interruption insurance the same as business income insurance?
The terms are often used interchangeably when discussing coverage for income losses following a covered business interruption. Insurance policies may use specific terminology and forms, so the actual policy language should be used to determine what is covered.
Does commercial property insurance cover business equipment?
Business equipment may be covered as business personal property under a commercial property policy, subject to the policy’s coverage terms, limits and exclusions.
Does business property insurance cover property away from my business?
Some commercial property policies provide limited coverage away from the described premises, but businesses with significant mobile property or property in transit may need specialized coverage such as inland marine insurance.
Is business income coverage included in a BOP?
Business income coverage may be included in an eligible Business Owner’s Policy, depending on the carrier and policy. The exact coverage, limits, waiting periods and conditions vary.
How much business property insurance does my business need?
There is no single appropriate limit for every business. The amount depends on factors such as the value of the building, equipment, inventory, furniture, improvements and other eligible property, along with the specific coverage being purchased.
Can Lavon Insurance help compare business property coverage?
Yes. As an independent insurance agency, Lavon Insurance can review available commercial insurance options from participating carriers based on your business, operations and coverage needs.
Let’s Look at What Your Business Depends On
Your business property, equipment, inventory and income all play a part in keeping the doors open. Let’s look at how your current coverage addresses those exposures and where additional protection may make sense.
Get a Business Insurance QuoteCoverage availability, terms, conditions, limits, exclusions, deductibles and eligibility vary by insurance carrier and policy. This page is provided for general educational purposes and does not amend, extend or replace any insurance policy.