Just as homeowners insurance protects a homeowner from the full cost of repairing unforeseen damage to a house, commercial property insurance protects businesses against damage to their buildings and contents. In the event of damage caused by fire or storm, for example, commercial property insurance can help repair or replace the buildings, inventory, equipment, machinery, and other business property affected.
Commercial property owners, both those operating a business on their property and those leasing property to another entity, can purchase policies that protect the building and associated structures. A property owner's policy, however, will not protect tenants from loss. Business owners who lease their property may buy policies that protect the building's contents, such as machinery, furniture and stored or displayed merchandise.