Commercial Earthquake Insurance
Commercial earthquake insurance covers quake damage that California commercial property and BOP policies exclude. It typically pays to repair the building, replace business personal property, and cover lost income and extra expense while you are shut down, and it is often written as a standalone policy or part of a difference-in-conditions policy.
Just like homeowners policies, standard commercial property and BOP policies in California exclude earthquake damage. For a business that owns or leases its building, holds inventory and equipment, or depends on staying open, an earthquake can threaten both the property and the business itself.
What does commercial earthquake insurance cover?
- Building / structure: repair or rebuild the commercial structure you own.
- Business personal property: inventory, equipment, fixtures, and contents.
- Business interruption and extra expense: lost income and added costs while you are shut down or operating from a temporary location.
- Tenant improvements and betterments: relevant if you lease and have built out your space.
Who needs it? Businesses that own their building, businesses with significant inventory or equipment, landlords and habitational owners, and any business for which an extended post-quake closure would be a serious financial threat.
Commercial earthquake is usually written as a standalone policy or as part of a difference-in-conditions (DIC) policy, which typically bundles earthquake with other excluded perils such as flood. California’s commercial building stock includes many older and unreinforced-masonry structures at higher seismic risk, and some jurisdictions require retrofitting. Because much of this coverage is placed in the specialty and surplus-lines markets, terms, deductibles, and limits vary.
How we help: We review your property, values, and business-income exposure, structure earthquake and DIC options that fit, explain how the deductible and limits affect both your premium and your recovery, and coordinate with your commercial property or BOP so there are no gaps.
