Which aspect of a business does commercial property insurance typically exclude?

Commercial property insurance generally does not cover employees' personal effects while they are on the business premises or in the course of their duties. This exclusion is significant because the primary purpose of commercial property insurance is to protect the business’s own property—such as buildings, equipment, and inventory—rather than the personal belongings of employees.

Including employees' personal effects within the coverage could lead to higher risks and complexities in policy administration. Businesses looking to protect their employees' personal belongings may need to seek additional types of insurance or riders that specifically address that need. This understanding is important in distinguishing between what commercial property insurance is designed to protect versus personal property insurance, which is more suitable for individual possessions.