Commercial Claims

A commercial claim arises when your business property—such as the building you own or lease, equipment, inventory, or other physical assets—is damaged by a covered peril (fire, wind, hail, theft, vandalism, etc.) or you suffer a loss of business income because of that damage. This includes claims by landlords for damage to rental property or for lost rent when a covered event makes a building unfit for tenants.

Commercial property insurance protects the structure itself and the contents you use to run your business: machinery, tools, inventory, furniture, outdoor signs, fencing and landscaping. Policies can also cover other people’s property in your care and certain intangible assets such as accounts receivable or lost income. Coverage is customizable—basic policies insure common perils like fire and wind, while broader or “all‑risk” policies include glass breakage, water damage, falling objects and theft. Commercial property insurance generally does not cover company vehicles, personal belongings, property not purchased for business use, damage due to employee errors or intentional acts, or losses beyond the policy limits.

Yes. Standard commercial property policies cover damage from fire, lightning, windstorms, hail, explosions, smoke, civil commotion, riots, vandalism and theft. “Broad” or “all‑risk” coverage may also include damage from broken glass, water leaks and falling objects. Flood and earthquake losses are excluded and require separate policies or endorsements. Businesses in flood‑prone or earthquake‑prone areas of Pennsylvania should speak with their agent about these additional coverages.

Business interruption (business income) insurance reimburses your net income and ongoing expenses when your business must temporarily close because of physical damage from a covered peril. This coverage pays for rent or mortgage payments, employee wages, taxes, loan payments and sometimes relocation costs while your property is being repaired. It is usually sold as part of a Business Owner’s Policy. The interruption must be caused by a covered event; losses due to pandemics or other non‑damage‑related closures are typically excluded. Optional “civil authority,” “contingent business interruption” or “extended business interruption” endorsements can expand coverage to certain off‑premises closures or supply‑chain disruptions.

Extra expense coverage reimburses the additional costs you incur to keep operating after a covered loss—such as renting temporary office space, leasing equipment or paying overtime to employees. It is designed to minimize or avoid a lengthy shutdown. Some policies include extra expense coverage automatically; others require an endorsement.