Commercial Property Insurance in Vermont

Commercial property insurance in Vermont can help provide coverage for your business’s physical assets, such as equipment, inventory and brick-and-mortar structures.

This coverage can help pay for replacement and repair costs when certain types of accidents or emergencies affect your assets. For example, commercial property insurance could help protect Vermont businesses in these types of situations:

• Structure fire: Commercial property insurance can help pay for repairs and replacements if there’s a fire at your business location.
• Water damage: Commercial property insurance can help cover costs associated with water damage resulting 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 help cover business property located inside or within 100 feet of your location.

Commercial property insurance also covers damage from Vermont’s winds and certain man-made events, such as vandalism.

It’s important to read your policy documents carefully to determine exactly what is covered and excluded for your business. Coverage can vary according to what industry you work in and other factors.

Commercial property insurance can protect different types of property

A Vermont commercial property insurance policy can help protect a number of physical business assets, such as:

• Damage to structures
• Broken windows
• Inventory
• Furniture
• Equipment
• Fixtures
• Flooring
• Business income

Types of Commercial Property insurance coverage

Vermont commercial property insurance policies from NEXT may include the following four types of coverage:

Goods, gear and inventory

Commercial property insurance can help cover repair and replacement costs 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 you own a bakery in Essex and a kitchen fire causes serious damage to essential appliances, commercial property insurance can help pay for repairs or replacements.

Business income interruption

A covered event, such as a fire or water damage from a burst pipe, could result in a temporary closure while repairs are made. Commercial property insurance can help cover lost income and other related expenses while your business is closed. This is also called business interruption insurance or business income insurance.

Example: If a Colchester fitness studio has to close for a week while fixing water damage from a burst pipe, commercial property insurance can help cover the income lost during that time.

Equipment breakdowns

Commercial property insurance can 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 Burlington restaurant’s industrial refrigerator stops working, commercial property insurance can help pay to repair or replace it.

Buildings

Vermont property insurance can help pay for repairs to a structure that you own and use for business purposes. Businesses that rent commercial space typically don’t need this coverage.

Example: If severe winds cause damage to the roof of a hardware store in Bennington, commercial property insurance could help cover the cost of repairs.

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

NEXT’s commercial property insurance policies cover damage due to fire, wind and hail. This includes damage caused by the following types of weather events:

• Wildfires
• Tornados
• Windstorms

Rioting, vandalism and other select types of man-made disasters may also be covered. Coverage for acts of terrorism is available as an optional add-on.

Volcano coverage and flood coverage are not included in a NEXT commercial property insurance policy. However, most areas of Vermont participate in the federal government’s National Flood Insurance Program, which offers residents the option to purchase flood insurance coverage.¹

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 Vermont?

Business owners in this state aren’t required to carry commercial property insurance.

Vermont doesn’t have a mandate for this coverage, but if you want to rent or purchase a physical space for your business, you may need to meet certain commercial property — and other business insurance — coverage requirements.

Commercial property insurance has a number of important advantages, which is why many business owners have this coverage even though it’s not required by law. Having this type of Vermont business property insurance can benefit your business in the following ways:

Cover property damage costs

Commercial property insurance can help stabilize your finances if your business’s physical assets are damaged or stolen. With this Vermont business insurance, you may not have to pay entirely out of pocket when unexpected situations arise.

Survive business interruptions

Business income insurance can help pay for lost income, employee wages and moving and relocation costs if you have to close temporarily due to a covered event.

Secure a loan

Banks and mortgage lenders might require businesses to carry this insurance to get a loan for a commercial property. The Small Business Administration (SBA) requires businesses to have  business hazard insurance on building used as collateral for their loans.

Sign a lease agreement

Some landlords include a requirement for property insurance in commercial lease agreements. You may need to provide proof of commercial property insurance to rent a space for your business.

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

Most businesses need a physical space and other assets like inventory, furniture, or equipment to operate. Commercial property insurance can help provide important protections for any business with these types of assets.

Vermont commercial property insurance can help cover a physical location, such as an office space or a brick-and-mortar store. If you run a business out of your home, the coverage from your homeowner’s insurance policy may be very limited. Commercial property insurance can help provide more comprehensive coverage for home-based businesses.

In the retail industry, commercial property coverage is typically important due to the significant amount of inventory kept on site. Damage or theft to that inventory could cause serious financial harm, but with commercial property insurance, retail business owners could get help covering related costs if these incidents occur.

How much is Commercial Property insurance in Vermont?

The total value of a business’s physical assets is the primary factor for determining commercial property insurance premiums. Several other considerations can also affect the cost of this insurance, including:

• Your business property location
• The number of employees you have
• The type of work you do
• Your work experience
• Your history of past claims
• The policy limits you select

Vermont business owners can get affordable commercial property insurance from NEXT. Over half 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 Insurance helps Vermont businesses

NEXT provides Vermont 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 National Flood Insurance Program

² Fact Sheet for Employers

³ Auto Insurance