How Much Is Commercial Property Insurance? 5 Variables That Impact Cost
                     Insurance Professionals of Arizona
Visit us: www.insuranceproaz.com
How Much Is Commercial Property Insurance? 5 Variables That Impact 
ACroes tyou a business owner? Do you have commercial property insurance 
coverage? Owning a business comes with risk. And operating a business 
without insurance coverage is even more of a risk. 
If you are a business owner, a commercial insurance policy is a must. You 
need the assurance that your company can stay afloat no matter what 
challenges come your way. This type of protection can save you from 
many headaches down the road.
While the need for commercial insurance might be apparent, calculating 
the cost of a policy is a more complicated matter. A quick online search 
asking the question, how much is commercial property insurance, yields 
all sorts of answers. Why? 
• Commercial property insurance is not the same as commercial general 
liability insurance
Before we dive into the makings of commercial property insurance, it is 
important to know the difference between commercial property insurance and 
commercial general liability insurance. One type of policy does not replace the 
other. They serve different purposes and work together to provide separate 
coverages. 
Visit us: www.insuranceproaz.com
Insurance Professionals of Arizona
Visit us: www.insuranceproaz.com
• Commercial Property Insurance
Commercial property insurance is also referred to as 
commercial building insurance. If you are a business owner that owns a 
building, this is the policy for you. 
When formulating your policy coverage, it is critical to remember these 
real-life scenarios. Tragic events that result in property damage can do 
harm to the business. But you can prepare for these events by having the 
proper coverage in place BEFORE anything happens. 
Let’s say you bought a whole life policy that’s accrued cash value.
You’ve contacted an agent for help selecting a cheaper policy that still
protects your family.
When formulating your policy coverage, it is critical to remember these 
real-life scenarios. Tragic events that result in property damage can do 
harm to the business. But you can prepare for these events by having the 
proper coverage in place BEFORE anything happens. 
All policies are not made equal. Coverage varies, so our goal is to identify 
the right kind of commercial building insurance policy that protects your 
specific business needs and physical assets. 
Visit us: www.insuranceproaz.com
Insurance Professionals of Arizona
Visit us: www.insuranceproaz.com
Commercial General Liability Insurance
While commercial building insurance covers property, 
commercial general liability insurance coverage helps you maneuver through a 
liability lawsuit. For example, if an individual is hurt while on your property and 
decides to sue your business for bodily injury, a commercial general liability 
insurance policy would cover that type of claim. 
Business liability coverage also falls under a commercial general liability policy. This 
sort of coverage protects you against slander, libel, copyright infringement, invasion 
of privacy, and misappropriation of advertising ideas when it comes to advertising 
your goods or services. 
• How much is commercial property insurance when you own a business
Now that we’ve defined the difference between commercial property insurance and 
commercial general liability insurance, let’s break down what goes into the price of 
property insurance. 
Typically, high-risk properties will have higher insurance rates compared to low-risk 
properties. Your premium amount will be based upon several factors, including:
#1 – CONSTRUCTION TYPE/BUILDING MATERIALS
 
What is the overall condition of the building? What the building is made of can 
have a drastic impact on the price of your property insurance policy. Another factor 
is if the building’s materials are fireproof. What about the interior materials, such 
as the floors, doors, and walls? Do those consist of fire-retardant materials? If not 
you may find yourself paying more than you anticipated.
#2 – LOCATION/GEOGRAPHY 
Is your building located in a high-crime area known for its criminal activity? What 
about the chance of natural disasters? If you find yourself in either situation, it 
could result in a more expensive property insurance policy. If the value of your 
building is based upon its location, this could also impact the cost of an insurance 
policy. Surprisingly enough, if a neighboring business is a potential risk to your 
property that could be another variable capable of raising your price
Visit us: www.insuranceproaz.com
Insurance Professionals of Arizona
Visit us: www.insuranceproaz.com
#3 – EQUIPMENT/MACHINERY
Will you be operating large or heavy equipment? The type of 
machinery you rely on for daily tasks is a factor that will 
certainly play a role in how much you pay for a commercial 
insurance policy. 
#4 – INDUSTRY/PROPERTY USAGE
The type of work you do in the building you occupy is another 
important factor when it comes to determining how much a 
commercial property insurance policy will cost you. For instance, if you 
do work that deals with hazardous or toxic materials you will likely 
wind up paying more than someone who occupies an office space with 
no harmful or dangerous materials present.
#5 – AGE/UPDATES
When was the building constructed? The age and condition of 
the building are also vitally important when figuring out how 
much a commercial property insurance policy will cost. That’s 
because buildings that have been recently updated or 
renovated are not considered as much of a risk compared to 
those that aren’t.
#6 – FACILITY SYSTEMS/AMENITIES
Building amenities also have an impact on the price of a 
commercial property insurance policy. That’s because 
buildings can have features that add additional safety and 
security features. These features can include  sprinklers 
and alarm systems that are likely to reduce the amount of  
irreparable damage from circumstances beyond your 
control. Being located near Fire and Police stations can also 
be helpful in that regard.
#7 – SIZE/STORAGE
As you can imagine, the size of the building is another factor 
that will affect how much you pay for a commercial property 
insurance policy. Larger buildings with extensive warehouses 
and storage facilities will likely result in more costly policies.
Visit us: www.insuranceproaz.com
Insurance Professionals of Arizona
Visit us: www.insuranceproaz.com
Finding the right kind of coverage for your business needs is critical to 
your livelihood
Are you wondering how much commercial property insurance will cost for 
your business? 
We can help!
•We have the expertise and knowledge to help you determine what kind of 
coverage you need at a price that fits your budget. 
•We pay attention to the little details that end up being significant details in 
the event of a major disaster. 
•We take the time to answer your questions and address your concerns. 
•We research different coverage options to ensure you receive the best type 
of policy for your business, yet save money too. 
•We make your business needs our top priority.
The peace of mind that comes with 
commercial property insurance coverage is irreplaceable. You  won’t regret 
the decision to protect the livelihood of your company. 
Give us a call at 480-981-6338 to get started. If you want to chat online or 
meet in person, either way, that works great for us. You can also contact our 
office by filling out a short online form.
Contact Us:
Insurance Professionals of Arizona
3521 E Brown Rd #101, Mesa,
AZ 85213, United States
Website: www.insuranceproaz.com
Contact: +1 (480) 981-6338
Email: [email protected]
Business Profile: https://goo.gl/maps/5447nVB7zrAZsp7E6
Follow Us on:
https://www.facebook.com/Insurance-Professionals-of-Arizona-145653065490506/
https://twitter.com/Insuranceproaz
https://www.linkedin.com/company/insurance-professionals-of-arizona
https://www.instagram.com/insuranceproaz/
https://www.youtube.com/channel/UChwk3oOUTDGpKTe5Ytv-xrw
Visit us: www.insuranceproaz.com