Does Commercial Property Cover Leased Equipment?
Possibly, if the policy covers property of others in your care or specifically schedules the leased equipment; the lease may assign insurance duties.
Leased machinery or office equipment is not automatically covered just because it is at your business. Some property forms extend limited coverage to personal property of others in your custody, but the wording, limit, and covered causes matter. A lease can also make you responsible for insuring equipment at its replacement value or naming the owner as loss payee. Equipment used at multiple sites may need broader location coverage.
Read the property-of-others clause and compare its limit with the lease’s insurance requirements. Identify each item, owner, value, and location; check transit, breakdown, and theft terms. Ask the lessor and broker to reconcile who insures the item, who receives claim payment, and whether an inland-marine or equipment floater is needed.
Related Coverage
Sources
- Commercial property insurance guide. Texas Department of Insurance; Coverage options; Replacement cost vs. actual cash value; Flood insurance; Crime coverage; Inland marine coverage; Additional coverages. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Commercial Property: Coverage Sections, Limits of Insurance, and Coinsurance; Covered Causes of Loss; Valuation Types; Inland Marine; Builder’s Risk; What Is a Business Owners Policy. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.
