Commercial Property Insurance for California Businesses.

Named perils only covers losses from specifically listed causes — fire, lightning, windstorm, vandalism, theft, etc. Anything not listed isn't covered. All risk (also called 'open perils' or 'special form') covers everything except specifically excluded causes. Most modern California commercial property is written on special form, which is broader and more valuable. We confirm policy form on every quote — named perils policies are sometimes used for pricing pressure but create real gaps.

Standard commercial property explicitly excludes earthquake. California has high seismic exposure, particularly in coastal areas, the Inland Empire, and the Central Valley. Commercial earthquake coverage is available through specialty markets (DIC — Difference in Conditions — policies, the California Earthquake Authority for some risks, and standalone earthquake carriers). Premium is significant — often 0.5-2% of building value annually — but coverage is essential for operations in high-risk zones.

Many commercial property policies include warranties requiring specific protective measures — sprinkler systems operational, central station fire alarm monitoring, security system armed during off-hours. Failure to maintain warranted protections can void coverage at claim time, even if the failure wasn't related to the loss. We confirm warranty requirements and help clients maintain compliance.

BI replaces lost income during the 'period of restoration' — the time it takes to repair the covered property damage. The carrier calculates what you would have earned based on prior performance, subtracts your continuing expenses (rent, salaries, etc., which the carrier may also pay), and pays the difference. Most policies have a 'waiting period' (typically 72 hours) before BI begins. We size BI limits to actual revenue and realistic recovery timeframes — typically 6-12 months for serious losses.

Extra expense pays additional costs you incur to keep operating after a loss — temporary location rent, expedited shipping, equipment rental, overtime to recover faster. It complements business interruption and is critical for operations that must keep running (medical practices, professional services, some retail). We add extra expense coverage by default on most commercial property policies.

Tenant improvements (TI) — flooring, fixtures, custom build-out, electrical/HVAC upgrades you made — are your property under most California commercial leases (you typically can't remove them at lease end). The landlord's insurance doesn't cover TI; your commercial property policy does. We confirm TI is covered at appropriate replacement-cost limits, and that the limits track significant TI investments.

Co-insurance is a property insurance penalty for underinsuring. If your policy has 80% co-insurance and you insure your $1M building for $500K (50%), claims are reduced by the ratio of actual coverage to required coverage. A $100K loss might pay only $62,500. We size limits to avoid co-insurance penalties entirely, or use 'agreed value' provisions that eliminate the penalty risk by mutual agreement upfront.

Yes — business personal property (BPP) coverage includes inventory, stock, and goods held for sale. Coverage applies to inventory at your insured premises. Inventory in transit or off-premises typically needs inland marine coverage to extend protection. We size inventory limits based on actual peak inventory (often higher than average), with seasonal adjustments where appropriate.