Protect your business assets from fire, theft, storms, and other covered perils. Commercial property insurance covers your building, equipment, inventory, and everything you need to operate your business.
Commercial property insurance protects physical assets from covered perils like fire, theft, vandalism, and certain weather events. You select coverage based on the value of your assets and your risk tolerance.
Coverage can be written on a "named perils" basis (only specific listed events are covered) or "open perils/special form" basis (everything is covered unless specifically excluded). Open perils provides broader protection.
When a covered loss occurs, you file a claim with documentation of the damage and loss. An adjuster inspects the damage and determines the covered amount based on your policy terms.
Replacement cost coverage pays to replace damaged property with new items of similar quality. Actual cash value coverage deducts depreciation. Replacement cost provides better protection but may have higher rates.
Coinsurance clauses require you to insure property to a certain percentage of its value (typically 80-90%). Underinsuring can result in penalties when claims are paid. Accurate valuations are essential.
Washington State does not require commercial property insurance, but lenders, landlords, and business necessities make it essential for most businesses.
Commercial mortgages in Washington require property insurance covering at least the loan amount. Lenders are named as loss payees to protect their interest in the property.
Commercial leases typically require tenants to insure their business personal property, tenant improvements, and sometimes carry coverage for the building itself or their portion of it.
Washington's location in the Pacific Northwest creates specific risks: earthquakes (especially in Western WA), windstorms, and flooding near rivers and coastlines. Standard policies exclude these perils.
Washington businesses should specifically consider earthquake coverage. The Cascadia Subduction Zone poses significant seismic risk. Earthquake endorsements or standalone policies are available.
Total insured value—the more property you need to cover, the higher the coverage amount
Building construction—fire-resistive construction is viewed more favorably than wood frame
Location—areas with higher crime, fire response times, or natural disaster risk affect rates
Protective safeguards—sprinklers, alarms, and security systems can positively impact rates
Building age and condition—newer, well-maintained buildings may receive better terms
Claims history—prior property losses affect your experience and rates
Deductible selection—higher deductibles reduce rates but increase out-of-pocket costs
Get a personalized quote to see exactly what property costs for your business.
Get Your QuoteSee how property protects Washington businesses in actual claim scenarios.
A grease fire breaks out in a Bellevue restaurant kitchen, destroying cooking equipment and causing smoke damage throughout the dining area. Total damage to equipment and improvements: $180,000.
Commercial property insurance covers the equipment replacement, repairs to tenant improvements, and cleanup costs. Business interruption coverage pays ongoing expenses and lost income during the 6-week closure for repairs.
Thieves break into a Seattle retail store overnight, stealing $45,000 in inventory and causing $8,000 in damage to doors, display cases, and security equipment.
Property coverage pays for the stolen inventory at replacement cost, repairs to damaged fixtures, and replacement of the security system. The business can restock and repair without devastating financial impact.
A severe windstorm damages the roof of a Tacoma warehouse, allowing rain to enter and damage stored inventory. Roof repairs cost $35,000 and inventory losses total $60,000.
Commercial property insurance covers both the roof repairs and the damaged inventory. The policy responds because windstorm is a covered peril and the water damage was a direct result of the covered event.
Replacement cost pays to replace damaged property with new items of like kind and quality, without deducting for depreciation. Actual cash value (ACV) pays replacement cost minus depreciation based on the age and condition of the item. A 5-year-old computer worth $2,000 new might have an ACV of only $400. Replacement cost coverage provides better protection but may have higher rates.
Yes. Your landlord's policy covers the building structure, but it does not cover your business personal property—your equipment, inventory, furniture, fixtures, and improvements. You need your own commercial property policy to protect these assets. Most commercial leases require tenants to carry property coverage.
Standard property policies cover many weather events like windstorms, hail, and lightning. However, floods and earthquakes are almost always excluded and require separate coverage. Given Washington's earthquake risk and flood-prone areas, these additional coverages are important considerations for many businesses.
Coinsurance is a policy provision requiring you to insure property to a certain percentage of its value (usually 80% or 90%). If you underinsure—say, insuring $500,000 worth of property for only $300,000—you may face a penalty at claim time. The insurer will only pay a proportional amount of partial losses. Accurate property valuations and adequate coverage limits are essential.
Calculate the total replacement cost of your business personal property: equipment, inventory at peak levels, furniture, fixtures, computers, and improvements you've made to leased space. If you own the building, include its replacement cost (not market value). Consider seasonal inventory fluctuations. An insurance professional can help with valuation methods.
Standard commercial property policies typically exclude mechanical or electrical breakdown—they cover external damage like fire or falling objects, not internal failure. Equipment breakdown coverage (sometimes called boiler and machinery) is a separate coverage or endorsement that covers sudden mechanical or electrical breakdown of equipment like HVAC systems, refrigeration, computers, and production machinery.
Get a free quote in minutes. Our Washington State insurance experts are here to help you find the right coverage at the best price.
