What does BOP insurance cover?

A business owner's policy bundles three things: commercial property (your building, stock, equipment and improvements), business income for lost earnings while physical damage stops you trading, and general liability for third-party injury, property damage and advertising injury. The NAIC describes it as a package product that is often cheaper than buying those coverages separately.

What is not covered by a business owner's policy?

The NAIC lists the main exclusions plainly: commercial auto, workers' compensation, health and disability insurance, and professional liability are not part of a BOP. Flood is also excluded from commercial property coverage generally and needs a separate policy. Cyber exposure is present only through small built-in sub-limits of $10,000 for electronic data and $10,000 for interruption of computer operations in the ISO form, unless a cyber endorsement has been added.

How much does a BOP cost per month?

Commercial publishers reporting on their own customers put it between roughly $80 and $147 a month in 2026: Insureon reports a median of $83, Progressive Commercial a median of $80 and an average of $127, and MoneyGeek an average of $147 across 79 industries and all 50 states. None of these is a quote. Your class code, property values, limits and location move the number far more than the carrier does.

Who is not eligible for a BOP?

Under ISO rules, most eligible risks are capped at 35,000 square feet of floor area and $6,000,000 in annual gross sales per location. Class-specific rules tighten that further: contractors are capped at $300,000 of annual payroll and 10% subcontracted work, restaurants at 7,500 square feet, and hotels cannot be seasonally closed for more than 30 consecutive days. Businesses outside those parameters move to a separately underwritten commercial package policy.

Is a BOP better than buying general liability and property separately?

For a business that fits the eligibility box, usually yes on price, because the bundle is rated as a package. The trade-off is flexibility: a BOP is a template with fixed sub-limits, and unusual exposures either get declined or get covered thinly. Once you outgrow the box, separate underwriting typically gives you better terms rather than worse.

Does a BOP cover flood damage?

No. Commercial property policies exclude flood, as state insurance regulators including the South Carolina Department of Insurance state directly. Separate cover comes through FEMA's National Flood Insurance Program, which caps non-residential buildings at $500,000 and contents at $500,000, usually has a 30-day waiting period, and settles non-residential losses at actual cash value rather than replacement cost. Private excess flood and an ISO flood endorsement for the BOP are also available.

Is there a BOP in Canada?

Not by that name in the same standardized way. Canadian insurers sell commercial packages, but the Insurance Bureau of Canada's own guidance describes business interruption as an optional add-on to a commercial property policy rather than a built-in component, and asks owners to choose between named perils and all risk property forms. Confirm what is actually on the policy rather than assuming the U.S. bundle transfers.

What happens if I underinsure my building?

The ISO BOP pays on a replacement cost basis subject to an 80% insurance-to-value requirement, which can be waived by endorsement. If your limit falls below 80% of what it would cost to replace the property at the time of loss, the settlement is reduced, including on partial losses. Ask your broker for the exact calculation your form uses, and revalue after any period of significant construction cost inflation.

BOP Insurance: What a Business Owner's Policy Really Covers

Commercial Property & Business Interruption Insurance 2026

Two numbers that are both true and pulling in opposite directions

Your commercial property premium probably went down this year. Across the market, it fell an average of 6.3% in the second quarter of 2026, the largest decrease of any line, according to the Council of Insurance Agents & Brokers' quarterly survey of brokers.

Meanwhile, the cost to rebuild the building it insures went up. The Associated General Contractors' analysis of Bureau of Labor Statistics data put the producer price index for new nonresidential construction at 8.4% higher than a year earlier as of May 2026, with the broader measure of materials and services bought by contractors up 8.1%.

Nobody is lying to you. Insurance got cheaper and construction got more expensive at the same time. But if your building limit has not moved while replacement cost climbed, a gap opened between what you insured and what it now costs to rebuild — and in commercial property, that gap is not just a shortfall at total loss. It is a penalty applied to every partial claim, including the small ones.

This page is about that gap and the four or five other places where commercial property and business interruption pay less than owners assume. If you want the wider program picture first, start with small business insurance.

1. What commercial property actually covers

1.1 The three causes of loss forms

The National Association of Insurance Commissioners describes three types of business property insurance, and the distinction decides most coverage arguments:

Basic form — covers losses from a catastrophic event such as fire, lightning, windstorm, hail and explosion, plus the cost of removing property to prevent further damage.
Broad form — basic form coverage extended to other perils, such as a roof collapse caused by snow or ice, and riot and civil commotion.
Special form — basic and broad coverage plus all other direct physical losses except conditions specifically excluded and listed in the policy.

In the standard Insurance Services Office commercial property program these correspond to three attachable forms — CP 10 10 basic, CP 10 20 broad, CP 10 30 special — which are used with the Building and Personal Property Coverage Form, CP 00 10.

Basic and broad are named perils: if the cause is not on the list, there is no coverage. Special is open perils: everything is covered unless the policy excludes it. Special form costs more and is the right default for almost every commercial account.

One trap in the basic form that catches retailers: theft itself is generally not a covered cause of loss under the basic form, although damage caused by burglars forcing entry may be. Check which form is on your declarations before you assume otherwise.

1.2 What counts as covered property

The NAIC's list is broader than most owners expect. Business property, whether owned or leased, may include the building itself, inventory, furniture, equipment and supplies, machinery, computers and data processing equipment, valuable papers and documents, artwork and antiques, and outdoor property such as signs and fences.

Two categories are worth naming separately because they are routinely under-limited:

Tenant improvements and betterments. The build-out you paid for in a space you do not own. Your landlord's policy insures the shell, not your fit-out.
Business personal property. Contents values drift faster than building values, because you keep buying equipment and stock without telling your broker.

2. Replacement cost or actual cash value

Businesses can buy property insurance on either basis, and the NAIC describes the difference plainly. Actual cash value reimburses the assessed value of lost, damaged or stolen goods after depreciation. Replacement cost pays the amount needed to replace, rebuild or repair with materials of similar kind and quality, with no deduction for depreciation.

The gap between them is not academic. A ten-year-old commercial roof, a five-year-old walk-in cooler and a fleet of laptops are all worth substantially less than what it costs to replace them. On an actual cash value policy, that difference is yours to fund.

Three things to check:

Which basis is on your policy, per category. Buildings and contents can be written differently.
Whether specific property is settled at actual cash value regardless. Under the ISO business owner's policy, used or second-hand merchandise held for sale, property of others, household contents, manuscripts, and works of art, antiques or rare articles are generally settled at actual cash value even when the rest of the policy is replacement cost.
Whether replacement cost is conditional. It usually is — which brings us to the next section.

3. The coinsurance clause and the arithmetic behind it

3.1 The formula

Commercial property policies commonly require you to insure the property to a stated percentage of its value — most often 80%, 90% or 100% — measured at the time of loss. Insure for less and the settlement is reduced by the ratio between what you carried and what you should have carried.

The standard mechanism:

(limit carried ÷ (property value × coinsurance %)) × amount of loss − deductible = payment

and the payment can never exceed the limit of insurance.

Two features make this bite harder than owners expect. First, it applies to partial losses, which is what most claims are. Second, "property value" means value on the basis your policy settles losses on — replacement cost if you bought replacement cost — not market value and not what you paid in 2016.

3.2 A worked example

The arithmetic below is illustrative, using the standard formula. Your own percentage, valuation basis and deductible are on your declarations page.

A workshop building costs $1,000,000 to replace today. The policy carries a $600,000 limit with an 80% coinsurance requirement. A fire causes $200,000 of damage. The deductible is $5,000.

Required insurance: 80% × $1,000,000 = $800,000
Carried: $600,000 → ratio 0.75
Payment: 0.75 × $200,000 = $150,000, less $5,000 deductible = $145,000

The uninsured shortfall on a $200,000 loss is $55,000, on a policy the owner believed was paying claims in full.

Note what did not happen. The claim was not denied. The policy was valid, the premium was paid, the peril was covered. The owner simply carried a limit that was correct three years ago.

3.3 Why the gap opens without you doing anything

This is the part that deserves the attention.

Building limits are usually set once and then indexed by a small automatic increase, if at all. Replacement cost, meanwhile, is set by the construction market. Per the Associated General Contractors' analysis of Bureau of Labor Statistics data reported in June 2026, the producer price index for new nonresidential construction rose 8.4% year over year as of May 2026, and the broader index of materials and services purchased by contractors rose 8.1%. BLS reported its overall final demand index up 4.7% for the twelve months to July 2026.

Run that forward. A building limit that was exactly at 80% of replacement cost two years ago, with no revaluation and a 4% annual automatic increase, is now materially below the threshold — through no decision anyone made.

And here is where the soft market becomes a trap. Property rates are falling: CIAB recorded a 6.3% average decrease in Q2 2026. The tempting move is to take the saving. The correct move is to take the saving and revalue, so that the falling rate buys you a higher limit for the same money.

4. Business interruption: the trigger matters more than the name

4.1 "Direct physical loss or damage"

Business interruption — also sold as business income coverage — replaces lost earnings while you cannot trade. The NAIC describes it as covering lost earnings from an extended shutdown due to circumstances covered by the underlying property policy, including expenses such as payroll and utilities, based on the company's financial records.

The critical words are in that description: due to circumstances covered by the property policy. Business interruption is not a standalone promise about income. It is a coverage that switches on when physical damage from a covered peril stops you operating. No physical damage, no trigger — however real the loss of income.

4.2 What the pandemic litigation established

This was tested at enormous scale, and the record is documented by an academic project rather than an industry one: the Covid Coverage Litigation Tracker, maintained at the University of Pennsylvania Carey Law School's Insurance Law Center by Professor Tom Baker.

The tracker catalogued thousands of coverage suits filed from March 2020 onward, the large majority claiming business interruption, extra expense and civil authority coverage. Analyses of the tracker's data published during 2021 and 2022 reported insurers prevailing in the overwhelming majority of federal trial-court rulings and a clear majority of state-court rulings, predominantly on the ground that the presence of a virus and a government closure order did not amount to "direct physical loss or damage" to property. Policies containing an explicit virus exclusion were dismissed at higher rates still.

The tracker remains the authoritative public record and includes a jurisdiction-by-jurisdiction map of how appellate and high courts have answered the physical-loss question. If your business is weighing a non-damage income exposure, that map is worth ten minutes.

The lesson is not that business interruption is worthless. It pays reliably after a fire, a burst pipe or a storm. The lesson is that the trigger is narrower than the product name suggests, and that loss of income without physical damage behind it — a supply chain failure, a demand collapse, a contract cancellation, a pandemic — is generally outside it unless you bought something specific for it.

4.3 The three clocks

Business income coverage runs on timers, and each one is shorter than people assume. Using the ISO business owner's policy as the reference:

Clock	What it does
72 hours	A waiting-period deductible built into the definition of the period of restoration. An endorsement replaces it with zero. Civil authority coverage likewise begins 72 hours after the first order
12 months	Coverage applies to loss sustained during the period of restoration occurring within 12 consecutive months of the physical loss. An endorsement can lengthen or shorten it
60 days	Extended business income continues for a maximum of 60 additional days after operations resume, because customers do not all return on day one

If your business would take more than a year to rebuild and re-open — a restaurant kitchen, a specialized manufacturing line, anything requiring permits — the standard indemnity period runs out before you do.

5. What is excluded and has to be bought separately

Exposure	Why it isn't covered	Where it comes from
Flood	Excluded from commercial property policies, as state regulators including the South Carolina Department of Insurance state directly	FEMA's National Flood Insurance Program, capped at $500,000 building and $500,000 contents for non-residential and settled at actual cash value; private excess flood; ISO also publishes a flood endorsement
Earthquake	Excluded from standard forms	Separate policy or an earthquake and volcanic eruption endorsement, often on a sub-limit
Equipment breakdown	Mechanical and electrical failure is not a "cause of loss"	Equipment breakdown protection, available as an optional coverage on a BOP
Utility failure off premises	The utility exclusion applies where the failure happens away from your property	Utility services endorsements, direct damage and time element versions
Cyber and data	Built-in electronic data limits are small — $10,000 aggregate in the ISO BOP, plus $10,000 for interruption of computer operations	A cyber policy. See cyber liability insurance
Vehicles	Not property coverage at all	Commercial auto insurance

The flood point deserves emphasis because it produces the single largest surprise in this line. Your commercial property policy may pay replacement cost on your building. Your NFIP flood policy on the same building pays actual cash value — FEMA limits replacement cost settlement to single-family principal residences, and contents are always settled at actual cash value. Two policies, same building, two different valuation regimes.

6. Canada: named perils, all risk, and BI as an add-on

The Insurance Bureau of Canada frames commercial property the same way, with one structural difference that matters.

IBC describes two basic property forms: a named perils policy covering only the causes listed in the policy, subject to exclusions, and an all risk policy covering loss or damage caused by any peril unless specifically excluded. It explicitly tells owners to make sure they understand any co-insurance conditions in the policy when setting limits, and defines the deductible as the amount for which the business is effectively self-insured.

The difference is business interruption. In IBC's guidance, BI is an optional add-on to a commercial property policy, not a bundled component, and it comes in three shapes:

Gross earnings — pays until property or stock is replaced or damage repaired.
Profits form — continues paying until the business returns to its pre-interruption level, subject to limits.
Extra expense — for businesses that can keep operating elsewhere, covering the cost of doing so.

IBC also states the physical damage requirement directly and adds the detail US-written articles omit: an interruption caused by a loss of data or utilities may not be considered a physical loss, and separate utility loss coverage may be available. Most policies pay until the business is restored or the coverage expires, usually 12 months from the start of the interruption.

Canadian readers: confirm three things on your policy — named perils or all risk, whether BI is actually attached and in which form, and what your co-insurance percentage is.

7. What it costs and where the market is

There is no meaningful published "average commercial property premium," and any site quoting one is describing something else. The line is priced as a rate applied to your total insured value — building, contents, tenant improvements and business income exposure — adjusted for construction type, protection class, occupancy, location and catastrophe exposure, then modified by your deductible and loss history.

What you can benchmark is direction, and here the institutional data is unusually clear.

Measure	Figure	Source
Commercial property premium change, Q2 2026	−6.3%, the largest decrease of any line	CIAB Q2 2026 broker survey
Overall commercial premium change, Q2 2026	−2.0% across all account sizes	CIAB
Small account change	−0.5%, against −3.7% for large accounts	CIAB
Nonresidential construction PPI	+8.4% year over year, May 2026	AGC analysis of BLS data
Median BOP premium (property plus liability bundled)	$83/month, median of policies bought	Insureon — commercial publisher, own customer base

Two conclusions follow, and they point the same way.

If your renewal came back flat, you paid above market. In a quarter where property fell 6.3%, flat is an increase in real terms. Small accounts got the least of that relief, so you have to ask for it. Ask your broker directly what your property rate change was and to show you one competing quote.

Spend the saving on the limit, not on the P&L. The rate is falling faster than construction costs are rising. That combination is temporary and it is the cheapest opportunity you will get to close a coinsurance gap.

8. Nine questions before your renewal

When was my building last valued, and by whom? A number your broker carried forward from 2019 is not a valuation.
What is my coinsurance percentage, and does it apply separately to building and contents?
Am I on replacement cost or actual cash value, per category?
Which causes of loss form is attached — basic, broad or special?
What is my business income limit, and how was it calculated? It should come from your financial records, not a round number.
Is the 72-hour waiting period still in the form, and what is my indemnity period?
Are tenant improvements insured, and by whom? Read the insurance clause in your lease alongside the policy.
What is my wind or hail deductible, and is it a percentage? On a $900,000 building, 2% is $18,000.
What did my property rate change this year, in isolation from the rest of the program?

Businesses that fit an insurer's eligibility box may have all of this bundled into a business owner's policy, with fixed built-in sub-limits. Businesses that have outgrown it get separately underwritten forms and more room to negotiate.

10. Sources

Institutional and government

U.S. Government Publishing Office / Office of the Federal Register — 49 CFR § 387.9, Financial responsibility, minimum levels (schedule of limits for property carriers, headed January 1, 1985): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387/subpart-A/section-387.9
Office of the Federal Register — 49 CFR Part 387, Minimum Levels of Financial Responsibility for Motor Carriers (applicability and the under-10,001-pound exception at § 387.3; passenger carrier limits at § 387.33; $300,000 small-fleet and household goods cargo limits at § 387.303; $75,000 broker bond at § 387.307, effective January 16, 2026): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387
Federal Motor Carrier Safety Administration — Insurance Filing Requirements: https://www.fmcsa.dot.gov/registration/insurance-filing-requirements
Federal Motor Carrier Safety Administration — Financial Responsibility for Motor Carriers, Freight Forwarders, and Brokers, advance notice of proposed rulemaking, 79 FR 70839 (November 28, 2014), on whether to increase the minimum levels: https://www.govinfo.gov/content/pkg/FR-2014-11-28/pdf/2014-28076.pdf
National Association of Insurance Commissioners — Small Business consumer guidance (commercial vs personal auto; business-use exclusions; naming the business as principal insured; permanently attached equipment; BOP exclusions): https://content.naic.org/consumer/small-business.htm
National Association of Insurance Commissioners — State insurance departments directory: https://content.naic.org/state-insurance-departments
Transport Canada — Motor Vehicle Safety Act: https://tc.canada.ca/en/corporate-services/acts-regulations/motor-vehicle-safety-act-1993-c-16
Transport Canada — National Safety Code: https://tc.canada.ca/en/road-transportation/motor-vehicle-safety/national-safety-code

Industry technical standards and associations

Insurance Services Office (Verisk) — ISO's Businessowners Policy ("BOP") Program, February 2025 (Hired Auto and Non-owned Auto Liability endorsement): https://core.verisk.com/-/media/LOB-Images/LOB-Ungated-Docs/General-ISO-Businessowners-Overview.pdf
Insurance Bureau of Canada — Types of business insurance coverage (auto insurance mandatory across Canada; vicarious liability for employees and volunteers; compliance obligations): https://www.ibc.ca/insurance-basics/business/types-of-business-insurance-coverage
Insurance Bureau of Canada — Mandatory auto insurance requirements (per-province minimum third-party liability, accident benefits and uninsured coverage): https://www.ibc.ca/insurance-basics/auto/types-of-auto-coverage/mandatory-auto-insurance-requirements
The Council of Insurance Agents & Brokers — Commercial P/C Market Index, Q1 and Q2 2026 (commercial auto +5.8% and +4.5%; overall premiums down 2.0% in Q2; AM Best loss ratio and underwriting loss data cited within): https://www.ciab.com

Commercial sources — pricing benchmarks, collected September 5, 2026

These publishers sell or compare insurance and describe their own books of business. Orientation, not quotes.

Insureon — commercial auto cost data as reported in published cost surveys: https://www.insureon.com
Insurance.com — How much is commercial auto insurance? (compiling carrier-published averages from Progressive, The Hartford and Next Insurance): https://www.insurance.com/small-business/how-much-is-commercial-auto-insurance/
Business.com — Commercial auto costs (Progressive figures by business type): https://www.business.com/insurance/commercial-auto-costs/

9. Frequently asked questions

What does commercial property insurance cover?

Your building if you own it, and business personal property including inventory, furniture, equipment, machinery, computers, valuable papers and outdoor property such as signs and fences, per the NAIC's description of business property coverage. What perils are covered depends on which causes of loss form is attached: basic and broad are named perils lists, while special form covers all direct physical loss except what the policy specifically excludes.

What is the coinsurance clause in commercial property insurance?

A requirement to insure your property to a stated percentage of its value — commonly 80%, 90% or 100% — measured at the time of loss. If you carry less, the settlement is reduced by the ratio of what you carried to what was required, using the formula (limit carried ÷ required amount) × loss, less the deductible. It applies to partial losses, not just total ones, which is why it surprises people on small claims.

What is the difference between replacement cost and actual cash value?

The NAIC defines actual cash value as reimbursement for the assessed value of property after depreciation, and replacement cost as the amount needed to replace, rebuild or repair with materials of similar kind and quality without deduction for depreciation. Replacement cost costs more and pays more. Some property is settled at actual cash value regardless — under the ISO business owner's policy that includes second-hand merchandise held for sale, property of others, manuscripts, and works of art, antiques or rare articles.

What triggers business interruption insurance?

Physical damage from a covered peril that suspends your operations. The NAIC describes business interruption as covering lost earnings from a shutdown due to circumstances covered by the underlying property policy. The Insurance Bureau of Canada states the physical damage requirement directly and notes that an interruption caused by loss of data or utilities may not qualify as physical loss.

Does business interruption cover a pandemic or a lost client?

Generally no. The question was litigated at scale and the record is documented by the Covid Coverage Litigation Tracker at the University of Pennsylvania Carey Law School. Analyses of the tracker's data reported insurers prevailing in the overwhelming majority of federal trial-court rulings and a clear majority of state rulings, mostly on the ground that a virus and a closure order were not "direct physical loss or damage" to property. Losing a client, a contract or demand is likewise outside the trigger.

How long does business income coverage last?

Under the ISO business owner's policy, coverage applies to loss sustained during the period of restoration occurring within 12 consecutive months of the physical loss, with a 72-hour waiting period built into the definition and up to 60 additional days of extended business income after operations resume. Endorsements can change the 12-month window and remove the 72-hour wait. In Canada, IBC notes most policies pay until the business is restored or coverage expires, usually 12 months from the start of the interruption.

How much does commercial property insurance cost?

There is no useful national average, because the line is priced as a rate applied to your total insured value and adjusted for construction, occupancy, protection and catastrophe exposure. What is measurable is direction: CIAB's Q2 2026 broker survey recorded commercial property premiums down an average of 6.3%, the largest decrease of any line, with small accounts seeing only a 0.5% overall decrease against 3.7% for large accounts.

Does commercial property insurance cover flood or earthquake?

No to both under standard forms. Flood is excluded, as state regulators including the South Carolina Department of Insurance state directly, and is covered separately through FEMA's National Flood Insurance Program — capped at $500,000 for non-residential buildings and $500,000 for contents, and settled at actual cash value rather than replacement cost. Earthquake requires a separate policy or endorsement, often on a sub-limit.

Where to go next

Small Business Insurance — the parent guide: what the law requires, what your contracts require, and what a full program costs.
BOP Insurance — where property, business income and liability come bundled, with fixed sub-limits and an 80% valuation rule.
Commercial Auto Insurance — the one line still rising while property falls.
Cyber Liability Insurance — for the income losses your property policy will not trigger on.
Business Insurance — the category hub, including what the 2026 market is doing to renewals.

11. Sources

Institutional, government and academic

National Association of Insurance Commissioners — Small Business consumer guidance (basic, broad and special property forms; list of covered business property; actual cash value vs replacement cost; business interruption description and waiting period): https://content.naic.org/consumer/small-business.htm
University of Pennsylvania Carey Law School, Insurance Law Center — Covid Coverage Litigation Tracker (Tom Baker), the public academic record of COVID-19 business interruption coverage litigation, including trial court rulings and appellate outcomes on "physical loss or damage": https://cclt.law.upenn.edu
U.S. Bureau of Labor Statistics — Producer Price Index news release, July 2026 (final demand up 4.7% for the 12 months ended July 2026; final demand construction up 2.2% in July): https://www.bls.gov/news.release/ppi.nr0.htm
U.S. Bureau of Labor Statistics — Producer Price Index home: https://www.bls.gov/ppi/
Federal Emergency Management Agency — NFIP agent training, Replacement Cost Value vs. Actual Cash Value (replacement cost limited to single-family principal residences; contents always settled at ACV): https://emilms.fema.gov/is_1115/groups/21.html
FEMA / National Flood Insurance Program — Top Ten Facts for Consumers (non-residential building and contents limits of $500,000 each; 30-day waiting period): https://dlnreng.hawaii.gov/nfip/wp-content/uploads/sites/11/2021/03/Consumers-Top-Ten-NFIP-Facts.pdf
South Carolina Department of Insurance — Flood Insurance for Businesses (commercial property policies and BOPs do not include flood): https://doi.sc.gov/988/Flood-Insurance-for-Businesses
National Association of Insurance Commissioners — State insurance departments directory: https://content.naic.org/state-insurance-departments

Industry technical standards and associations

Insurance Services Office (Verisk) — ISO's Businessowners Policy ("BOP") Program, February 2025 (business income within 12 consecutive months; 72-hour period of restoration deductible; 60-day extended business income; civil authority 72-hour trigger; property settled at actual cash value by category; 80% insurance-to-value requirement; equipment breakdown, flood, earthquake and utility services endorsements): https://core.verisk.com/-/media/LOB-Images/LOB-Ungated-Docs/General-ISO-Businessowners-Overview.pdf
Insurance Bureau of Canada — Types of business insurance coverage (named perils vs all risk; co-insurance conditions; deductible as self-insurance; business interruption as an optional add-on with gross earnings, profits and extra expense forms; physical damage requirement; 12-month indemnity period): https://www.ibc.ca/insurance-basics/business/types-of-business-insurance-coverage
The Council of Insurance Agents & Brokers — Commercial P/C Market Index, Q2 2026 (commercial property −6.3%; overall −2.0%; small accounts −0.5% against −3.7% for large accounts): https://www.ciab.com
Associated General Contractors of America — analysis of BLS producer price index data for construction inputs and new nonresidential construction, as reported June 2026: https://www.agc.org

Commercial sources — reviewed September 5, 2026

Labeled because these publishers sell or compare insurance, or serve the insurance industry.

Insureon — business owner's policy cost data (median premium benchmark): https://www.insureon.com/small-business-insurance/business-owners-policy/cost
International Risk Management Institute (IRMI) and PropertyCasualty360 / FC&S — technical commentary on ISO commercial property forms CP 00 10, CP 10 10, CP 10 20 and CP 10 30: https://www.irmi.com

A note on the coinsurance example. The formula in section 3 is the standard commercial property coinsurance calculation and the figures are our own illustration. Your coinsurance percentage, valuation basis, deductible and limit are on your declarations page and control the result. Ask your broker to run the calculation on your actual numbers.

Tagged Commercial Property and Business Interruption Insurance