FRIDAY, MARCH 26, 2021
Commercial property insurance is designed to protect your business’ physical assets in case of an accident or disaster. If you have any physical property such as equipment or a location like a store or office, you will need commercial property insurance.
Businesses that typically have the most to lose when it comes to commercial property include those in industries such as real estate, construction, technology and retail or distribution.
Commercial property insurance can come in many different business packages such as a business owners policy or you can purchase it alone. Keep in mind that commercial property covers physical perils and doesn’t include liability protection.
What Does Commercial Property Insurance Cover?
Commercial property insurance generally covers damages due to fire, explosions, theft, vandalism, burst pipes and storms.
It can cover belongings such as:
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Business building
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Work equipment
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Computers
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Furniture
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Outdoor signs
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Fences
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Inventory
What Does Commercial Property Insurance Not Cover?
Commercial property insurance does not usually include earthquake or flood coverage. These are separate coverages you can add to your company’s commercial property policy. While commercial property insurance covers computers, it doesn’t cover the information on those computers. Nor does commercial property cover work vehicles, which require commercial auto insurance.
How Does Commercial Property Insurance Work?
When creating your commercial property insurance policy, take into account both the value of the company buildings and contents as well as the type of policy you want. There are two ways to receive compensation for items lost due to a covered peril: replacement cost and actual cash value. With replacement cost, you will receive the exact amount it would take to replace or rebuild the property or items lost.
If you choose to receive the actual cash value of the items or building, you will receive payment that accounts for depreciation. In other words, if the value of your equipment goes down over time, you will receive the depreciated value when your claim is approved. Make sure your policy is the policy you want and need for your business.
Be sure to speak with your insurance agent about your commercial property and how to protect it. Not everything will be covered under a basic commercial property insurance policy. Also consider combining this coverage within a business owners policy. This insurance combines insurance policies for small businesses in low risk industries. Compare quotes and speak with an insurance agent.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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