Commercial Property Insurance in California

You can save up to 25% in discounts.*

Commercial property helps cover physical assets

Business goods and gear

Business goods and gear

You turn your back and someone does the 100-yard dash with your business laptop. You’ll need a replacement.


A tree unexpectedly falls on your shop’s roof.
Equipment breakdowns

Equipment breakdowns

Your HVAC unit stops working the day after the warranty expires.
Business income interruptions

Business income interruptions

A fire damages an exterior wall at your business and you have to close for three weeks during repairs.

What does Commercial Property insurance cover in California?

Commercial property insurance in California can help provide coverage for the physical assets you need to operate your business.

When certain types of accidents or emergencies arise, you may be able to submit a claim to get help with replacement, repair or reimbursement costs.

Here are some examples of how commercial property insurance can help California business owners:

  • Structure fire: Commercial property insurance can help pay for repairs and replacements if a fire breaks out at your business. This can include California wildfire insurance coverage.
  • Water damage: Commercial property insurance can help pay to fix the water damage from burst pipes and other leaks. Note: This does not include flood coverage (see below for more details).
  • Theft or vandalism: Commercial property insurance can cover property inside or within 100 feet of your business.

Covered events generally include damage from water, fire and wind, and man-made events like theft and vandalism.

It’s important to read your policy documents carefully to see exactly what is covered and excluded for your business. Coverage can vary between different industries.

Commercial property insurance can protect different types of property

Some of the items that your commercial property insurance policy can help protect include:

  • Inventory
  • Furniture
  • Fixtures
  • Equipment
  • Structural damage
  • Broken windows
  • Flooring
  • Business income

Types of Commercial Property insurance coverage

NEXT commercial property insurance policies in California can typically include four basic types of coverage:

Goods, gear and inventory

Commercial property insurance can help provide financial assistance if your furniture, equipment or inventory is affected by a covered event. This coverage is also known as business personal property insurance or BPP insurance.

Example: If a San Francisco jewelry store is burglarized overnight and inventory is stolen, commercial property insurance can help pay for replacements.

Business income interruption

Your insurance can help cover lost income and other related expenses during a temporary closure due to fire, water damage or another covered event. This is also known as business interruption insurance or business income insurance.

Example: If a Los Angeles massage therapy clinic has to close for two weeks after a fire, commercial property insurance can help cover the income lost during the time it takes for repairs.

Equipment breakdowns

With this coverage, you can get help with replacement or repair costs if your equipment is damaged due to a power surge or mechanical failure.

Example: If the electronic circuit control board in a Sacramento restaurant’s walk-in cooler malfunctions, commercial property insurance can help pay to fix the problem.


Your commercial property insurance can help pay for repairs to a building you own and use for business purposes. If you’re leasing or renting a commercial space, you typically don’t need this coverage.

Example: If a windstorm damages the roof of a Fresno convenience store, commercial property insurance could help pay for the costs to repair or replace roofing material.

Does Commercial Property insurance help pay for damage from natural disasters in California?

Commercial property coverage from NEXT can help pay for fire, wind and hail damage to your business property. This extends to damage caused by certain types of weather events, including:

  • Wildfires
  • Tornados
  • Windstorms

Volcanoes and floods are not included in NEXT commercial property coverage. The federal government’s National Flood Insurance Program is the primary resource for flood insurance, so it’s a good idea to look into this if you’re in a flood-prone area.1

In California, the risk of earthquakes is much higher than in most other states.

NEXT commercial property insurance policies don’t include coverage for earthquakes. Most earthquake insurance in this state is provided by the California Earthquake Authority (CEA).2

Certain man-made disasters, such as vandalism and rioting, are included in NEXT commercial property insurance policies. An optional coverage add-on is available for acts of terrorism.

It’s important to read your policy documents closely to make sure you are getting the coverage you need. NEXT has a team of U.S.-based advisors who are ready to help as you review coverage options.

Is Commercial Property insurance required in California?

California does not require all businesses to carry commercial property insurance or business hazard insurance, another term used to describe this coverage.

Business owners may discover, however, they need various types of California business insurance to rent or own commercial property.

Even if you find that you’re not required to have it, commercial property insurance can help you:

Cover property damage costs

If an accident occurs, commercial property insurance can help your business remain financially stable if you need to replace or repair damaged property.

Survive business interruptions

If you need to close temporarily after a covered incident, business income insurance can help you stay afloat by assisting with lost income, moving and relocation costs and employee wages.

Secure a loan

Many banks and mortgage lenders may require proof of commercial property insurance before approving your loan. Similarly, the Small Business Administration (SBA) requires businesses to have business hazard insurance on building used as collateral for their loans.

Lease agreement

A landlord may ask you to carry commercial property insurance before they’ll agree to rent a commercial space to you. This requirement is often written into commercial leases.

What types of businesses might need Commercial Property insurance in California?

Many types of California businesses can benefit from the financial protection offered by commercial property insurance.

If you operate your business from a physical location, whether that’s an office space or a brick-and-mortar store, California commercial property insurance coverage can help protect your business assets.

Home-based businesses often have very limited coverage through their homeowner’s insurance, so commercial property insurance can provide additional coverage when needed.

In certain industries, some business owners consider commercial property insurance to be a must-have. For example, brick-and-mortar retail businesses typically maintain more inventory on-site than other businesses. Because that inventory can be damaged or stolen, commercial property coverage is particularly important.

How much does Commercial Property insurance cost in California?

The cost of commercial property insurance varies based on a number of factors, including:

  • What type of work you do
  • The total value of your business property
  • How many employees you have
  • Your business property location
  • Your history of past claims
  • Your work experience
  • How high you set your limits

To find out how much coverage will cost for your business, start a free instant quote online.

At NEXT, 56% of U.S. customers pay $45 or less per month for commercial property insurance.**

Learn more about commercial property insurance costs.

How NEXT helps California businesses

NEXT provides commercial property insurance policies designed for California-based small businesses and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other important California business insurance coverage

California commercial property insurance can help protect your business’s physical assets. However, it’s important to consider additional types of coverage designed for the risks you may face every day as a business owner.
In addition to property insurance, these California business insurance coverages can help to protect your business:
General Liability
General Liability insurance

General liability coverage in California can help protect your business if certain types of accidents occur, like damage to property that doesn’t belong to you or an injury to someone other than an employee.

Workers Compensation
Workers’ Compensation insurance

Workers’ compensation insurance can help pay for medical expenses and lost wages if an employee gets hurt on the job. In California, all employers are required by law to have workers’ comp insurance.3

Commercial Auto
Commercial Auto insurance

Commercial auto insurance can help cover property damage, medical expenses, towing and repairs if you or your employees drive for work-related purposes and are involved in an accident.

All business-owned vehicles in California must be covered by commercial auto insurance, with minimum coverage of $15,000 per person, $30,000 per accident and $5,000 for property damage.4

Errors & Omissions
Professional Liability insurance (E&O insurance)

Professional liability insurance can help protect your business if a client claims that you made a professional mistake that cost them money. It’s commonly bundled with general liability insurance for more comprehensive protection.

Get customized insurance in California

blank 1x1

Customer reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased commercial property insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

© 2024 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.