What is commercial property insurance?

Commercial property insurance is coverage that protects your restaurant’s building (if you own it) and contents from damage or loss due to fire, theft, vandalism, and other covered perils.

What you need to know

This covers the physical assets of your restaurant—your building structure, kitchen equipment, furniture, inventory, and business property. It pays to repair or replace these items after covered losses.

Why it matters for restaurant owners

Your restaurant’s physical assets represent enormous investment—typically $250,000-$1M+ in equipment, furniture, and buildout. A total loss without adequate property insurance means financial ruin.

Ensure your policy covers actual replacement cost (not depreciated value), includes equipment breakdown, and has sublimits sufficient for your highest-value items. If you rent, you still need contents coverage even though the landlord insures the building.