Commercial Property Insurance in Maine

Commercial property insurance in Maine can help cover physical assets that businesses use to operate, such as buildings, inventory and equipment.

Maine business owners may be able to submit a claim to help cover repair or replacement costs if certain kinds of emergencies or disasters affect their business. Covered events generally include damage from water, fire and wind, and man-made events like theft and vandalism.

Examples of how commercial property insurance can help businesses include:

• Structure fire: If your business is affected by a fire, commercial property insurance could help pay for repairs and replacements.
• Water damage: Commercial property insurance can help pay to fix water damage that results from burst pipes and other leaks. Note: This does not include flood coverage (see below for more details).
• Theft or vandalism: This insurance coverage can extend to property located inside or within 100 feet of your business.

Exact coverage may vary from one industry to the next. It’s important to read your policy documents carefully to find out what is covered and what is excluded for your business.

Commercial property insurance can protect different types of property

Here are some examples of what assets may be covered by Maine commercial property insurance:

• Commercial building structures
• Built-in fixtures
• Broken windows and flooring
• Business furniture
• Equipment
• Business income interruption
• Inventory inside or within 100 feet of the building

Types of Commercial Property insurance coverage

Maine commercial property insurance policies from NEXT can include four types of coverage:

Goods, gear and inventory

Commercial property insurance can help pay for related costs if your furniture, equipment or inventory is affected by a covered event. Other names for this coverage include business personal property insurance or BPP insurance.

Example: If an electrical fire damages essential appliances at your Portland coffee shop, commercial property insurance can help pay for repairs or replacements.

Business income interruption

This insurance can help cover lost income and other related expenses if you need to close temporarily due to a covered event, such as a fire or water damage. Other names for this coverage include business interruption insurance or business income insurance.

Example: If a Bangor hardware store clinic has to close for a week while fixing water damage from a burst pipe, commercial property insurance can help make up for the income lost during that time.

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 a power surge damages several machines at a Lewiston laundromat, commercial property insurance can help cover the costs of repairs or replacements.

Buildings

Your commercial property insurance can help pay for repairs to a building that 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 tree branch crashes through the glass door of an Augusta convenience store during a severe windstorm, commercial property insurance could help pay for the costs to repair the damage.

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

Located in the far northeast of the country, Maine is lucky to have lower instances of natural disasters than many other U.S. states. However, natural hazards like winter storms, wildfires and even tornados are possible. The Maine Emergency Management Agency is the state’s number-one resource for disaster preparation and relief tips.¹

A NEXT commercial property insurance policy can help Maine businesses pay for damage caused by fire, wind and hail, including weather events such as:

• Tornados
• Wildfires
• Windstorms

Some natural disasters, such as floods and volcanoes, are not covered by NEXT commercial property insurance. The National Flood Insurance Program from the federal government is the primary source of flood insurance for American businesses. If you live along the coast, near one of Maine’s many rivers or in another flood-prone area, you should consider this coverage.²

Some man-made disasters like rioting, theft and vandalism are covered by NEXT commercial property insurance in Maine. You can also get optional coverage for acts of terrorism as an add-on to your policy.

Is Commercial Property insurance required in Maine?

Businesses in Maine are not required by law to carry commercial property insurance.

However, business owners may find they need this business hazard insurance to rent or own commercial property.

Although commercial property insurance is not mandated in Maine, there are several advantages to having this coverage. Consider the following benefits when deciding whether your business needs this type of insurance:

Cover property damage costs

Commercial property insurance can help your business remain financially stable when damaged property needs to be replaced or repaired due to a covered event.

Survive business interruptions

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

Secure a loan

As a condition of mortgage approval, some banks and lenders require proof of commercial property insurance before you can purchase a business property. Similarly, the Small Business Administration (SBA) requires businesses to have  business hazard insurance on building used as collateral for their loans.

Lease agreement

Maine property owners and managers 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 Maine?

Most businesses, regardless of the industry in which they operate, can benefit from commercial property insurance. Whether you rent or own your workspace, you can be more financially secure as a business owner with this type of Maine business insurance.

Any business operating from a physical location, such as a store or office space, can get commercial property insurance coverage to help protect business assets. Home-based businesses should also consider this insurance option since homeowner’s insurance usually only offers minimal coverage for business property.

Commercial property insurance is especially important for businesses that store large amounts of inventory on site, such as retail stores. Inventory carries a significant risk of damage or theft, but Maine commercial property insurance can help offer financial protection for those assets.

How much is Commercial Property insurance in Maine?

Maine commercial property insurance costs vary based on several factors, such as:

• Where your business operates
• How many employees you have
• The industry that you’re in
• How high you set your policy limits
• Your business’s age
• Your company’s history of insurance claims
• The total value of business property to be insured

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 Insurance helps Maine businesses

NEXT provides Maine commercial property insurance policies designed for 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.

¹ Natural Hazards

² National Flood Insurance Program

³ Workers Compensation FAQs

⁴ Insurance Required by Law