What Is commercial property insurance?
When you own your own business and have commercial property, it is important to understand everything about property insurance.
Commercial Property Insurance is a key factor in reducing your risk as a business owner And ensuring financial protection for your employees, your customers, and your livelihood.
If your business suffers a loss or damage from a fire, a theft, a storm, a
plumbing disaster, or other physical destruction, a commercial property
policy will protect your property and its contents. Many times, these policies
also cover any loss of income or higher business expenses that occur because
of the damage.
Business property insurance is something every company needs – whether
you own your own building, lease or work from home. A variety of businesses,
including manufacturers, retailers, service-oriented businesses, and not-for-profit
organizations carry commercial property insurance. It is generally bundled
together with other forms of insurance, such as commercial general liability
Commercial property insurance definition
Commercial property insurance protects your company’s physical assets from
Earthquakes and floods typically aren’t covered by commercial property insurance, unless those perils are added to the policy.
How much does commercial property insurance cost?
Determining how much you’ll pay for commercial property insurance largely depends on the value of all of your business assets, including your building.
Other factors that determine your premium are based on risk, including:
Is the area prone to storms and other natural disasters?
Is your building constructed with fireproof materials? Does it have new or upgraded electrical wiring, plumbing and HVAC?
What is your industry? A realtor’s office generally carries less risk than a restaurant or repair shop.
Fire and theft protection
How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or sprinkler system?
How about a security system?
What does commercial property insurance cover?
Commercial property insurance covers your building, everything in it and just outside of it, including:
● Furniture and equipment
● Exterior signs
● Fence and landscaping
● Important documents
● Others’ property
When determining how much a company should pay for commercial property insurance, the value of a business’ assets, including the building, is the primary factor. Before meeting with an agent to discuss coverage, a company should take an inventory of their physical assets located at their property.
This information will help determine what exactly would be the replacement value and the level of coverage the business should get.
Factors Considered in a Commercial Property Insurance
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