Commercial property helps cover physical assets
Business goods and gear
You turn your back and someone does the 100-yard dash with your business laptop. You’ll need a replacement.
Buildings
A tree unexpectedly falls on your shop’s roof.
Equipment breakdowns
Your HVAC unit stops working the day after the warranty expires.
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 Rhode Island?
What does Commercial Property insurance cover in Rhode Island?
Commercial property insurance in Rhode Island can help provide businesses with essential protections for the physical assets they need to operate.
When a covered accident or emergency occurs, commercial property insurance may help Rhode Island business owners with replacement, repair or reimbursement costs.
Some examples of how this insurance can help protect businesses include:
- Structure fire: Commercial property insurance can help pay for repairs and replacements if a structure fire affects your business.
- Water damage: Commercial property insurance can help pay to fix water damage that results from burst pipes and other leaks. Note: This insurance does not include flood coverage (see below for more details).
- Theft or vandalism: Commercial property insurance coverage can apply to property located inside or within 100 feet of your business.
In addition to incidents involving water or fire as described above, commercial property insurance may also cover damage from wind or certain man-made events.
Coverage can vary from one industry to another. It’s important to read your policy documents carefully to find out exactly what is covered and excluded for your business.
Commercial property insurance can protect different types of property
Some of the physical assets that a Rhode Island commercial property insurance policy can help protect include:
- Inventory
- Furniture
- Fixtures
- Equipment
- Structural damage
- Broken windows
- Flooring
Commercial property insurance may also be able to cover lost business income due to a temporary closure after a covered event.
Types of Commercial Property insurance coverage
NEXT commercial property insurance policies in Rhode Island may include these four basic types of coverage:
Goods, gear and inventory
Commercial property insurance can help pay for repairs or replacements if your furniture, equipment or inventory is affected by a covered event. This type of coverage is also known as business personal property insurance or BPP insurance.
Example: If you own a bike shop in Providence and a burst water pipe damages some of your inventory, commercial property insurance could help cover replacement or repair costs.
Business income interruption
Rhode Island commercial property insurance can help pay for lost income and other related expenses during a temporary closure due to a covered event, such as a fire or a burst water pipe. This coverage is also known as business interruption insurance or business income insurance.
Example: If a Warwick restaurant has to close for two weeks after a fire damages their equipment, commercial property insurance can help make up for the income they would have made 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 the electronic circuit control board in a Cranston excavator’s rig stops working due to a mechanical failure, commercial property insurance can help pay to repair it.
Buildings
If a covered event affects a building that you own and use for business purposes, commercial property insurance can help pay for repairs. Typically, business owners don’t need this coverage if they’re renting commercial space.
Example: If a windstorm knocks over a tree and it smashes the glass door of a Newport furniture store, commercial property insurance could help cover the costs to repair the damage.
Does Commercial Property insurance help pay for damage from natural disasters in Rhode Island?
Commercial property insurance from NEXT can help pay for damage to your business property caused by fire, wind or hail. This includes damage caused by related weather events, including:
- Windstorms
- Tornados
- Wildfires
Some qualifying man-made disasters are also covered by NEXT commercial property insurance policies, including vandalism and rioting. Optional terrorism coverage is available as an add-on.
NEXT’s commercial property insurance coverage does not cover floods, earthquakes or volcanoes. Due to Rhode Island’s sizable coastline and rivers like Blackstone and Pawtuxet, the risk of flooding is much higher than in most other states.
The Rhode Island Emergency Management Agency’s Planning and Mitigation Section is responsible for administering the federal government’s National Flood Insurance Program Program (NFIP). All municipalities in Rhode Island participate in the NFIP, giving all state residents the opportunity to purchase flood insurance through the program.1
Similarly, commercial property insurance does not cover damage caused by natural disasters such as earthquakes or hurricanes. These require separate coverages.
Is Commercial Property insurance required in Rhode Island?
Businesses in Rhode Island are not legally required to carry commercial property or hazard insurance.
Rhode Island entrepreneurs may find, however, that they need this business insurance coverage to rent or own commercial property.
Even though this insurance is not required by law, there are many potential advantages to having commercial property insurance, such as:
Cover property damage costs
Commercial property insurance can help your business remain financially stable if a covered incident occurs and you need to replace or repair damaged property.
Survive business interruptions
Business income insurance can help you stay afloat by assisting with lost income, relocation costs and employee wages in the event of a temporary closure following a covered incident.
Secure a loan
Some banks and lenders require proof of insurance for business owners who wish to secure a loan (mortage or business). Similarly, the Small Business Administration (SBA) requires businesses to have business hazard insurance on building used as collateral for their loans.
Lease agreement
Property 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 Rhode Island?
Businesses in nearly every industry can benefit from commercial property insurance.
Rhode Island business owners that operate from a public location, such as a brick-and-mortar store or an office space, can get commercial property insurance to help protect their physical assets.
Commercial property insurance can also help home-based businesses. Homeowner’s insurance often features limited coverage, but business owners may need additional coverage from a commercial property insurance policy.
In certain industries, commercial property insurance is particularly advantageous to business owners. Brick-and-mortar retail businesses, for example, typically keep a significant amount of inventory on site. Rhode Island commercial property coverage can help protect the business financially if inventory is damaged or stolen.
How much is Commercial Property insurance in Rhode Island?
The cost of Rhode Island commercial property insurance varies based on a number of factors, including:
- The total value of your physical assets
- Where your business is located
- The type of work that you do
- The number of employees you have
- Your work experience
- Your past claims history
- What policy limits you choose
NEXT offers affordable commercial property insurance for Rhode Island business owners. In fact, 56% of our U.S. customers pay $45 or less per month for their commercial liability policy.**
Learn more about commercial property insurance costs.
How NEXT helps Rhode Island businesses
NEXT provides Rhode Island 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.
Other types of Rhode Island business insurance
General liability coverage can help protect your business if an accident causes damage to someone else’s property or injury to someone other than you or an employee.
Workers’ compensation insurance can help pay for medical expenses and lost wages if an employee gets hurt at work. Nearly all Rhode Island businesses with one or more employees are legally required to carry workers’ comp insurance.2
Commercial auto insurance can help cover property damage, medical expenses and other related costs if you or an employee gets into an accident.
In Rhode Island, all vehicles are required to have minimum auto insurance coverage of $25,000 per person, $50,000 per accident and $25,000 for property damage.4
If a customer or client claims that you have made a mistake in your job that cost them money, professional liability insurance can help cover the related costs. Also called errors and omissions or E&O insurance, this coverage is often combined with general liability insurance for small businesses.
Sources for Rhode Island business owners
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Learn more about commercial property insurance options in the state where you work.
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