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Protect Your Building, Equipment, and Business Assets

If you are a Michigan business owner—whether you run a retail store, medical office, contracting business, warehouse, professional office, or mixed-use commercial space in Howell, Brighton, Birmingham, Bloomfield Hills, Clarkston, Farmington, Farmington Hills, Fenton, Northville, Novi, Rochester, Rochester Hills, Royal Oak, South Lyon, Troy, or Wixom—your building, equipment, inventory, and property are your key assets. Commercial Property Insurance protects Michigan businesses from unexpected damage, loss, and costly disruptions, helping you keep operating after unforeseen events.

One Source Insurance partners with Michigan business owners to secure commercial property coverage that meets lease and lender requirements and addresses risk exposures unique to our region. This essential protection helps Michigan companies recover from damages, theft, and other covered risks, ensuring the financial stability of your business assets.

Bundling commercial property insurance with other policies, such as general liability in a Business Owners Policy (BOP), can save Michigan businesses money.

What Commercial Property Insurance Covers

Commercial property insurance covers tangible goods your business relies on daily. Most policies pay for physical loss or damage to your building, tools, stock, and furnishings due to fire, burglary, or certain natural disasters. You can add coverage, like business interruption or specialty equipment, for extra protection.

Building Coverage

Protects the physical structure of your business location, including:

Business Personal Property (Contents) Coverage

Covers the items inside your business, such as:

Tenant Improvements & Betterments

If you lease your space, build-outs or improvements you paid for can also be covered.

Business Income / Business Interruption Coverage

Replaces lost income if your business must temporarily close due to a covered incident, such as a fire or natural disaster.

This can include:

Coverage may help you recover lost income and operational costs, such as employee wages and relocation expenses, so your business can continue operating after a covered incident.

Michigan-Specific Property Risks

Freeze–Thaw Cycles

The quick temperature transitions can ultimately lead to:

Wind & Hail Storms

These two types of hazards can severely affect your commercial structure’s roof(s) and/or internal structure.

Snow Load

Accumulated snow may cause structural damage to all forms of roof systems, eaves, gutters, etc., and/or damage to exterior equipment.

Theft & Vandalism

Retail, restaurants, and offices in high-traffic areas face increased exposure.

Water Damage & Utilities Failure

Basements, sump pump failure, and drainage problems are common in Michigan commercial buildings.

Commercial Property Insurance helps protect against these unpredictable but common scenarios.

Replacement Cost vs. Actual Cash Value

Understanding the difference between RCV and ACV is crucial for Michigan businesses, especially when filing a claim, as replacement costs are important.

Replacement Cost Value (RCV)

Pays what it costs to repair or replace damaged property at today’s prices — with no depreciation deducted.

Actual Cash Value (ACV)

Pays the depreciated value of damaged property — often resulting in significantly lower payouts.

Why Most Michigan Businesses Choose RCV

With rising construction costs in Birmingham, Bloomfield Hills, Troy, and Novi, RCV ensures your building and assets can actually be restored to their previous condition.

Who Needs Commercial Property Insurance in Michigan?

This coverage is essential for small business owners and small businesses that own or lease property, including:

Retail stores and boutiques
Professional service firms (including those that provide professional services)
Medical and dental offices
Restaurants and cafés
Contractors and trades
Salons and personal care services
Small manufacturers
Real estate and property management companies
Co-working or shared office spaces
Nonprofits and community organizations

Many Michigan landlords, lenders, and commercial leases require proof of Commercial Property Insurance before occupancy.

Optional Enhancements Many Michigan Businesses Choose

Business Income with Extra Expense

We will pay for the cost to reinstate your Business following a loss.

Equipment Breakdown

Coverage for damage to machinery and electronics from normal wear and tear.

Spoilage Coverage

Essential for any business storing perishable, frozen, and/or temperature-controlled items, e.g., restaurants and cafes.

Outdoor Signs & Detached Structures

Coverage for signage, fencing, storage buildings, and more.

Water Backup or Sewer Overflow

Important for Michigan properties with basements or older plumbing.

Bailee Coverage

For businesses that take possession of clients’ property (e.g., repair shops, dry cleaners).

Contractor Equipment or Inland Marine

Protection for tools and equipment that move between job sites.

What Commercial Property Insurance Does NOT Cover

Commercial Property Insurance does NOT cover:

Employee injuries, work-related injuries, medical bills, or disability benefits (requires workers' compensation insurance)
Professional errors, called errors, or lawsuits related to work performance (requires professional liability insurance, also known as errors and omissions insurance)
Legal claims, lawsuits, or legal fees unrelated to property (requires general liability insurance, liability insurance, or business liability insurance)
Cyberattacks, data breaches, notification costs, or related legal fees (requires cyber liability insurance)
Damage to business-owned vehicles, injuries, theft, vandalism, or weather damage to vehicles (requires commercial auto insurance)
Flood damage (requires separate flood insurance)

Business liability insurance, general liability coverage, and professional liability insurance (including coverage for called errors) are separate policies from commercial property insurance. Lawsuits and legal fees are not covered by commercial property insurance and require appropriate liability policies.

We help you combine policies to eliminate coverage gaps.

How Much Does Commercial Property Insurance Cost in Michigan?

The cost of a business insurance policy depends on several factors, including:

Building size and construction type
Location
Fire protection and security measures
Value of equipment and inventory
Chosen deductible
RCV vs. ACV valuation
Industry type (restaurants, contractors, medical, etc.)

We help Michigan business owners insure their property at competitive rates, offering solutions tailored to your business needs.

Most Michigan business owners pay $750 – $3,500 per year, though premiums for high-value properties or specialized industries may be higher.

Common Questions About Commercial Property Insurance

01. Does property insurance cover theft?

Yes — theft and burglary are typically included.

02. Does property insurance cover water damage from frozen pipes?

Yes, if it’s sudden and accidental. Flooding is not covered unless you add flood insurance.

03.Does this cover tenants’ belongings?

No — tenants need their own Business Personal Property coverage.

04. Will my lease require Commercial Property Insurance?

Most commercial landlords require it.

05. Does vacation rental insurance cover lost bookings?

Yes, with Business Income/Business Interruption coverage.

Service Areas

We proudly serve business owners throughout Southeast Michigan, including

Howell
Brighton
Birmingham
Bloomfield Hills
Clarkston
Farmington
Farmington Hills
Fenton

Northville
Novi
Rochester
Rochester Hills
Royal Oak
South Lyon
Troy
Wixom

Our commitment to commercial property insurance in Michigan is reflected in the satisfaction of our customers across these areas, with many businesses trusting us for their insurance needs.

Request a Commercial Property Insurance Quote in Michigan

Your building, equipment, inventory, and business assets deserve complete protection. Insure your Michigan business by purchasing commercial property insurance coverage. Contact One Source Insurance today to compare top-rated carriers and get a Commercial Property Insurance policy tailored to your Michigan business.

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Any submissions or payments made via this website do not constitute a binding agreement to your policy or coverages. Changes and payments to policies are not effective or binding until you, or any party involved, receive official notice from either your insurance agent, or your insurance company. If you have any questions, please feel free to contact us.

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Disclaimer- Insurance coverage cannot be bound or changed via submission of any online form/application provided on this site or otherwise. No binder, insurance policy, change, addition, and/or deletion to insurance coverage goes into effect unless and until confirmed directly by a licensed agent.

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Our dedicated staff of insurance professionals are here to assist you in securing an insurance policy to protect you and your loved ones for years to come.

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Commercial Property Insurance Michigan