Property Insurance

Property insurance covers the risk of property loss in various business situations, including commercial buildings, equipment, furniture, inventories, business records, supplies and other physical items.

Standard property insurance policies cover two types of property losses: direct and indirect losses. Direct losses occur when a commercial property is lost, stolen, damaged or destroyed. These losses are straightforward, and the majority are covered under the right policy. 

Indirect or consequential losses are more complex, as these losses typically happen because of the consequence of the direct loss. Business interruption is a common example of an indirect loss; if a fire destroys a store, loss of profit due to the store’s closure represents the indirect loss.