Commercial Property Insurance
Property Insurance refers to first-party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion. In this sense, property insurance encompasses inland marine, boiler and machinery (BM), and crime insurance.
Protect Your Assets with Commercial Property Insurance
At AutoRisk, we provide tailored insurance solutions that allow business owners to operate with peace of mind, knowing their assets and liabilities are covered by experts who understand the unique demands of the automotive industry.
States We Provide Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
What Is Property Insurance?
Property Insurance provides coverage for your business’s physical assets including buildings, equipment, inventory, and other property. This coverage protects against risks like fire, theft, vandalism, natural disasters, and other covered perils.
For automotive businesses, property insurance is essential to safeguard:
Service centers and repair shops
Dealership lots and showrooms
Vehicle inventory (new and used cars)
Specialized equipment and tools
Office space and parts inventory
Without property insurance, damage to these critical assets could result in significant financial loss and business interruption.
Why Your Automotive Business Needs Property Insurance
Every automotive business faces exposure to property loss. A single event an be devastating. Whether fire in your service bay, a break-in on your lot, or storm damage to your showroom, get the protection you need.
Property insurance is important because:
Dealership and lot assets are high-value. Cars, tools, and equipment represent significant investment.
Repairs or replacements are expensive. Property insurance covers physical damage costs and prevents out-of-pocket expenses.
Business continuity depends on it. Coverage may include business interruption protection, keeping operations running while repairs are made.
Required by lenders or manufacturers. Financing agreements for dealerships and service centers often require proof of property coverage.
Don’t leave your coverage to chance, work with an expert who understands your operation.
What is Covered?
What Property Insurance Covers for Automotive Businesses
Property insurance policies can vary, but typically cover:
Buildings and structures – Showrooms, service bays, offices, garages, and storage facilities.
Business personal property – Tools, machinery, office equipment, signage, and parts inventory.
Vehicle inventory – Optional coverage for cars and trucks stored indoors or on your lot (often combined with Dealers Open Lot or Garagekeepers policies).
Business interruption – Loss of income if operations are halted due to a covered peril.
Named perils coverage – Fire, theft, vandalism, windstorm, hail, and other insured events.
Equipment breakdown – Protects tools and machinery from mechanical failure, electrical surge, or accidental breakdown.
How much does commercial property insurance cost?
Determining how much your business will pay for commercial property insurance will require you to schedule a consultation. To understand what we are looking at when we get you a quote, the price is based on the value of your building and business assets. Other variables that determine your premium are based on risk, including location, type of construction and materials, and property use.
What Property Insurance Does Not Cover
Standard property insurance excludes some risks unless specifically endorsed:
Intentional damage or criminal acts by employees
Wear and tear, gradual deterioration, or maintenance issues
Flood or earthquake (often requires separate coverage)
Damage to vehicles in care, custody, or control (covered by Garagekeepers Insurance)
Damage from war or nuclear events
Understanding these exclusions ensures your overall insurance program fully protects your business assets.
Common Loss Scenarios
A fire in the service bay damages equipment, office files, and vehicles under repair.
A break-in on the lot results in stolen tools, tires, and parts inventory.
Hailstorms or tornadoes damage vehicles stored outside and the dealership roof.
Electrical surge destroys diagnostic equipment or business computers.
Property insurance helps pay for repairs, replacement, and operational continuity in these events.
How to Structure Your Policy
When designing property coverage for your automotive business, consider:
Building value – Replacement cost or actual cash value?
Inventory exposure – Vehicle types, quantities, and storage location.
Equipment and tools – Include specialized service equipment and diagnostic machinery.
Business interruption needs – Determine potential income loss if operations stop.
Peril selection – Standard fire, theft, and vandalism coverage, plus optional endorsements for flood, earthquake, or cyber property risks.
Your broker can tailor limits and endorsements to match your facility, inventory, and operational risks.
Benefits of Property Insurance
Protects high-value automotive assets against unexpected loss
Minimizes financial impact of property damage or theft
Keeps your business running with business interruption coverage
Supports financing and lease agreements
Demonstrates professionalism and risk management to customers and partners
Benefits of Working With AutoRisk
Hundreds of Clients Nationwide | Fast and Responsive Advisors | Transparent Coverage with No Surprises
Custom Policy Design
We customize your coverage based on your business operations, risk exposure and geographic location with the goal of reducing your claims.
Industry Expertise
We specialize in automotive business risk management. Our team understands the automotive industry and delivers solutions to reduce claims and save money.
Competitive Pricing
We work with specialized underwriters and carriers to offer the most coverage for your dollar, helping you stay profitable while staying protected.
Claims Support That Works for You
In the unfortunate event of a loss, our subject matters experts will help you though the claims process, minimize downtime, and recover value efficiently.
Learn More About the Insurance Required to Protect your Business
Dealers Open Lot Insurance | Errors and Omissions | Garagekeepers | Garage Liability | Commercial Auto | Employee Liability | Property | Workers’ Compensation | Pollution Liability | Cyber Liability | Rental Insurance | On-Hook Towing | Cargo Towing | Vehicle Leasing | General Liability | Excess Liability
