Things You Must Know About Commercial Property Insurance

Let’s hope it never happens, but just imagine a fire destroys the building that houses your business and all its assets. Or suppose that you’re an artist with a studio, and a water pipe bursts and ruins your documents, drawings, or other valuable papers or if a storm ruins your outdoor sign. These are all nightmare scenarios for a business owner. These are just a few of many things that could happen when you own or rent the property for your business. Fortunately, Commercial Property Insurance provides you with the coverage against a big financial loss if anything bad happens to your assets.

Commercial Property Coverage Includes:

This type of insurance covers several things including; your building, your inventory, your furniture and equipment, your outdoor signage, your fence and landscaping as well as the property of others.

However, the nature of the incident dictates the type of coverage you need. According to the United States Small Business Administration, commercial property coverage protects everything related to losses i.e. caused by wind and hail storms, civil disobedience, fire, smoke and vandalism.

As the government agency explains that the term “property” is broad as for insurance purposes, hence includes business interruption, lost income, documents, money, and computers.

Types of Commercial Property Coverage:

Generally, there are two types of coverages when it comes about the commercial property; all-risk policies and peril-specific policies. All-risk policies cover a wide range of perils and incidents except the ones listed in the policy. However, peril-specific policies cover only those risks covered by the policy.

Peril-specific policies may include business interruption, flood, crime, and fire. While all-risk policies cover risks that a small enterprise might face. A business owner would prefer to purchase a peril-specific policy if a business owner is having the company in an area where there is a high risk from a certain kind of peril.

Here are some specific types of coverage being provided by commercial property insurance:

Valuable Papers Coverage:

This type of coverage protects your company by providing limited coverage for business records and valuable papers. If you get an endorsement, there would be a possibility to get an enhanced level of coverage.

Ordinance or Law Coverage:

This kind of coverage will give you money for additional costs to rebuild or repair a structure to make it meet building codes after damage. Here, an endorsement makes it possible to increase your coverage but to a limited extent.

Extra Expense Coverage:

After damage, this type of insurance coverage will provide additional money to return your business to its normal condition.

Business Interruption Coverage:

After damage to your business, this kind of coverage will pay for the income you lost that made it tough to perform your normal business operations.

Boiler and Machinery Coverage:

Insurance coverage of this type covers air conditioning units, steam cookers, boilers, electric water heaters, compressors and similar machinery. This protection covers any machinery listed in the policy from losses that are caused because of the malfunctions of boilers or machinery.

Employees’ Personal Property:

This kind of coverage covers personal property your employees may have on your premises.

Off-Premises Property Coverage:

In case of damage, this provides coverage to your off-premises property. If your policy doesn’t cover off-site property, you may need a separate policy or an endorsement for the coverage if you want.

Inland Marine Coverage:

This insurance coverage protects goods in transit by air, land, or inland waterways. It protects bridges, tunnels, communications towers, communications structures–all considered under construction.

Newly Acquired or Constructed Buildings Coverage:

This type of coverage provides protection to any building you will add to your policy within a certain time frame. Make sure to tell your insurance company that a certain amount of time – often 30 days. This cover provides protection to the buildings listed in your policy.

Building Occupied by the Insured Coverage:

This insurance cover provides protection to any building you don’t own but use on a regular basis. You might need this type of insurance coverage when you borrow or lease a building.

Flood Insurance:

Insurance companies provide protection if a business is in an area with low risk. Mostly the flood insurance is provided only by the National Flood Insurance Program.

However, you may suggest insurance that will help you determine the type of coverage you need for your commercial property. Try to get a quote for the type of policy that exactly meets your requirements.

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