Types of Property Insurance

April 30, 2018


Commercial property insurance offers protection against financial losses that come about as a result of damage or loss to physical assets. Property insurance is made up of different types of insurance policies. This article will highlight some of the different types of property insurance that exist.

Direct Damage Property Insurance

This type of insurance cover is designed to protect you against damage or loss to physical property as stipulated by a covered cause of loss.

To obtain a direct damage policy, most businesses purchase a commercial property policy. A commercial property policy, covers damage or loss to business owned property such as production machinery, buildings, stock, furniture, and office equipment.

In addition, this policy also offers protection for any damage or loss that is caused to someone else’s property. For instance, a copy machine that is leased from an office supply store.

Property policies are not cast in stone and can be removed, added or changed as required using endorsements.

Commercial insurance can be offered a la carte or in combination with other insurance policies for instance general liability. It can also be purchased as part of a businessowner’s policy, which is a multiline that targets small businesses.

Time Element Coverages

This insurance cover offers protection against losses that are incurred in the time it takes to repair damaged property. The more time it takes to repair damaged property the more losses that are incurred. There are different types of time element insurance covers. They include:

  • Extra Expense Coverage

This cover takes care of the expenses that a policy holder incurs in a bid to avoid a shutdown of their business after their property sustains a physical loss.

  • Business Income Coverage

This provides coverage for the company income your business will lose if it is forced to shutdown because of damage caused to physical property.

  • Leasehold Interest Coverage

This offers coverage for any financial loss you might incur caused when your lease is cancelled as a result of direct physical damage or loss to property on your premises.

Inland Marine Insurance

Businessowner’s Policies as well as commercial property insurance covers are designed to offer protection for property that is on location but not elsewhere. This is where inland marine insurance comes in. It is designed to offer cover to property such as machinery and other equipment that is transported over land.

For instance, tree trimming companies own tools such as wood chippers, saws, ladders etc that they have to transport from their premises to the work site.

Since inland marine insurance offers protection to movable property, this type of insurance is also known as a floater.

Inland marine insurance differs from ocean marine insurance which covers cargo and ships that travel on the high seas.

There are different types of inland marine insurance covers.  You will find some of them mentioned below. Most of these can be used to supplement a commercial package or property policy through a separate endorsement. Inland marine covers include:

  • Fine Arts Coverage
  • Accounts Receivable Coverage
  • Contractors Equipment Coverage
  • Inland Transit Coverage


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