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Key Takeaways

  • Commercial property policies protect business buildings, contents, and business income
  • Business income coverage pays for lost profits and continuing expenses during suspension
  • Coinsurance clauses require adequate coverage limits to avoid penalties
  • Arkansas businesses need windstorm and flood coverage considerations
  • Commercial policies offer broader coverage than personal lines
Last updated: January 2026

Arkansas Commercial Property Insurance

Commercial Coverage Forms

Building and Personal Property (BPP)

CoverageDescription
BuildingOwned structures, fixtures, equipment
Business Personal PropertyInventory, furniture, equipment
Property of OthersCustomer property in care

Business Income Coverage

Pays for:

  • Lost net income during suspension
  • Continuing normal operating expenses
  • Extended period of restoration
  • Extra expenses to continue operations

Coinsurance

Formula: Payment=Insurance CarriedInsurance Required×Loss−Deductible\text{Payment} = \frac{\text{Insurance Carried}}{\text{Insurance Required}} \times \text{Loss} - \text{Deductible}

Insurance Required = Property Value × Coinsurance %

Exam Tip: Coinsurance penalizes under-insurance. Carry at least the required percentage (typically 80%, 90%, or 100%) to avoid becoming a co-insurer.

Test Your Knowledge

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