The American commercial property market has always seen tremendous changes as well as growth. However, post-COVID commercial properties, especially corporate offices, have seen a marked and steady downward trajectory. The market for US commercial real estate was around $1.66 trillion in 2024 and it is expected to reach around $1.89 trillion by 2029. Let’s look at the insurance needs of these properties.

For commercial properties, the insurance premiums depend on the property’s type, location, or industry. For instance, while some businesses can purchase a business owner’s policy and receive basic coverage for $57 per month, a small business usually pays an average of $67 per month to get their commercial property covered under general property insurance. In essence, the insurance requirements are determined based on the specifications and kind of commercial building in discussion.

Let us examine various commercial properties and their potential for protection.

Various types of commercial properties

• Corporate Offices

Corporate offices have a high footfall of regular employees and visitors, which presents several liabilities that need to be recognized and addressed. Because general liabilities, such as workplace accidents, become statistically more frequent, they must be factored in when creating an insurance portfolio. Having general liability insurance can be very beneficial in these situations.

Corporate office sites may become targets of physical security breaches and cybercrime. According to Statista, in 2022, around 480,000 cybercrime cases directed at businesses were reported and in 2024, the estimated cost of cybercrime in the US was around $452.3 billion. In case of a breach that compromises customer information, the company may be prosecuted for negligence and data loss. Having cyber insurance can cover court costs and damages if the business has the appropriate insurance policy.

In addition, fixing damaged property and other repair work are among the most significant losses that corporate offices face. These damages might happen due to a variety of reasons including accidents or natural disasters. Today, the cost of repairs and reconstruction can prove prohibitive given the impact of inflation. Such repair expenses can be covered by appropriate commercial property insurance.

• Retail Chains

Extensive insurance policies are necessary for retail chains today because they are frequently the target of crimes and accidents. Shoplifting and theft are now very real threats to retail establishments. If the situation escalates, property damage may also follow. Retail chains need to have insurance for situations like this that protect them when they become victims of crimes. These policies can assist with paying any court costs and also for replacing misplaced property.

Perhaps more than many other commercial properties, retail stores have the potential to cause harm to both employees and guests. This is because of the extensive footfall and the dynamic nature of the in-store environment. That’s why retail stores require general liability insurance for protection. Product liability insurance is an additional type of liability insurance that these retail chains must purchase given the potential for litigation based on what they sell. This policy makes it possible to compensate individuals who use a defective product and get injured or harmed in the process.

Also, retail chains and stores need property insurance and business interruption insurance to be compensated for lost sales as well as reconstruction costs in the event of significant damage due to natural and other events.

• Residential Areas

Homeowners should be very careful when purchasing insurance because, if their properties are rented, they may be regarded as commercial properties, and standard homeowner insurance may not be sufficient or apt to cover any kind of damage. Injuries to tenants and guests are among the most common scenarios that may result in legal costs. General liability or landlord insurance can be of help as it can allow building owners to foot medical expenses or the costs of legal proceedings.

Property insurance is a must as it helps in paying for any damage that can happen due to natural calamity, theft, vandalism, or even the actions of tenants. This ensures that the costs of all repair work are paid reducing the financial burden on the property owner.

It is also advised to get valuable item insurance if there are any expensive items in the house. Valuables, such as sports equipment, are usually not covered by general property insurance. Owners can also consider an additional security layer to be better prepared. For instance, umbrella insurance can be very helpful in handling unforeseen parameters.

• Industrial Areas

Industrial settings necessitate extensive insurance coverage due to the preponderance of hazardous materials, complex scenarios, and the complex activities of large machinery. These kinds of factories or areas also carry a risk of contaminating the environment with their actions, which could result in harsh fines from the authorities. That’s why industrial property owners need environmental liability insurance. These areas are dangerous for workers as well leading to the risk of injury and even death. It is, therefore, necessary to have general liability insurance to cover these problems.

In addition to liability insurance, property owners must purchase workers’ compensation insurance to ensure that any injured employees receive just compensation as well as settlements as mandated by law. Compensation and legal requirements can be better managed with the appropriate liability insurance.

No matter how big or small, Gonzalez Insurance assists business owners, property owners, and other professionals in protecting their assets. Our expertise lies in assisting individuals and small business owners to fully protect their commercial properties. We assess their portfolios and provide guidance to craft better solutions. Get in touch with us to receive a personalized quote if you own commercial real estate and need a thorough discussion about your assets and how to manage your insurance policies.