Your business is growing. Your revenue is booming. Things are great. However, you know that everything is still at risk, and it’s not always sunshine and rainbows. You need to prepare for the stormy season that may come like a thief in the night. So, you think about commercial property insurance. But what is it exactly?
Today, let’s explore what commercial property insurance coverage you can have for your business.
We’ll also answer questions, such as what requirements would you need to comply to get your commercial building insured, what assets are covered and not covered, and how much will it cost your company to buy a property insurance policy — I will also provide some tips in finding affordable commercial property insurance companies.
(image alt text: a coffee shop covered by commercial property insurance )
Commercial property insurance provides financial protection to businesses that own or rent a commercial building or space—primarily protecting the company from unexpected expenses caused by unfortunate events such as natural disasters, burglary or theft, and accidental fires.
Now, it’s important to understand that while business property insurance companies cover your business space and equipment, the policy may or may not include equipment breakdown coverage.
If you also want to invest in the latter, make sure to let your insurance provider know.
Just like any other type of insurance policy, your commercial property policy cannot cover everything in your business and every situation that happens in your business property. Here’s a quick rundown of what’s generally covered and not covered by your policy:
These are the things that are insured in your company when a covered incident affects your business property, such as theft, vandalism, fire, natural disasters, and other occurrences that are stated in your insurance policy:
Now, remember that there can be a myriad of things that a commercial property policy can cover. Consult with an insurance provider for businesses to learn more about property insurance coverage.
Here’s a list of incidents that your property insurance policy does not cover:
Remember: if you want your business property to be covered from the abovementioned unfortunate incidents, you can get a bundle with your commercial property policy—it’s best that you speak with a property insurance agent and make your concerns known, so your policy can be customized to your business needs and demands.
Your property insurance should primarily depend on the kind of business you have. For instance, you purchased a stand-alone business property insurance policy to protect a building that you own as well as all the contents in that particular building.
However, to meet your company’s needs and demands, you can invest in different property insurance coverage as well, such as the following:
Business Owner’s Policy (BOP) can consolidate your commercial property protection policy and general liability insurance under a cheaper premium rate instead of having to pay for separate policies, which can be more expensive.
The BOP covers your company’s movable assets, such as your office furniture and supplies, manufacturing and production machinery, computer systems, and other items.
(image alt text: business properties insured by a business property insurance coverage )
General liability insurance protects your company from sudden unexpected expenses caused by accidental injuries done to your customers, clients’ property damages, and other related lawsuits to your business.
(image alt text: slipping on a discarded banana peel leading to injury - an unfortunate event in a commercial property covered by a business property insurance policy)
Business interruption insurance provides financial protection to your company in cases of sudden and forced closure due to a property-related incident, such as a burst pipe in the building or your warehouse caught fire.
(image alt text: fire - incident covered by commercial property insurance companies)
Inland marine insurance protects movable business property, such as items that your company temporarily cares for—artwork displays in a museum, classic hardbound books in a bookstore, and expensive jars sold in your cafe. This kind of insurance also protects businesses that move from one place to another, such as a food truck.
(image alt text: food truck insured under commercial property insurance coverage)
The cost of commercial property assurance coverage commonly differs based on the following business factors:
Property insurance on commercial buildings located in states and cities with a top-notch record of protection typically costs less than business places situated in areas that have little-to-no fire protection.
Commercial property assurance coverage often costs more when you are insuring a business building that is primarily made of combustible materials, such as wooden floors, walls, and doors. In contrast, commercial places constructed with fire-resistant materials could pay relatively lower premiums.
This factor often examines the risks that come with the business. For instance, insuring a restaurant and a repair shop will cost you more than insuring a typical office space—this is because the former commercial property samples engage more in fire risks than the latter.
Commercial property assurance companies also consider a company’s preparedness on fire and theft accidents by checking the locations of fire and hydrant stations, the presence of alarm and sprinkler systems, and a security system installed in your commercial building.
Nowadays, investing in a property insurance policy is a must. You can’t just let unexpected incidents take everything from your growing business, right? And we understand that you need something that fits your company’s needs and budget.
So, here are a few tips for finding affordable commercial property assurance policy: