There are many ways that you should be protecting your business. Commercial property insurance is one of the most important, especially if your business has a physical location. This can include an office space, factory, workshop, retail space, or any other type of working location. Insurance can protect not just the physical building in which you are located, but any assets you might have, such as equipment, furniture, signage, and fencing. There are some misconceptions out there about commercial property insurance, and many businesses choose not to have it. Here is everything you need to know about commercial property insurance, and why it’s crucial to have.
Commercial Property Insurance Coverage
Here’s what is covered by most property insurance policies. Keep in mind that each provider may have different variations on their coverage.
Your Property
It is called commercial property insurance, and it will do just that: insure your property. Coverage extends to property that you own, or one that you rent or lease, or have as a triple net lease. A triple net lease is a situation where you do not own a property but you are the entity responsible for insuring it, as per the lease agreement.
Coverage will also protect any additions you’ve made to the structure of the building, indoor and outdoor fixtures, and equipment and machinery that is permanently installed on your property. This can include things like factory and manufacturing machinery, or cooking appliances.
Business Personal Property
Beyond the building and the physical location of the property, you can also have coverage for items that are located inside and on the exterior of the property. Even if your place of work is rented or leased and insured by the owner, you should still have coverage for the contents that belong to your business. This can include furniture, inventory, office equipment and supplies, computers, laptops, devices, and anything else that your business owns on the premises. Always make sure that your coverage extends to at least 100 feet of the building you are insuraing so that exterior items are protected as well.
Property of Other Parties
Many people forget that commercial property insurance does not just cover the property of the business owner. It also protects the property of those who are one the premises. This could mean the property of customers, vendors, suppliers, or any other party that comes onto your property. If something happens and their property, such as their vehicle or laptop, is damaged, you and they will be protected. Again, in most cases this coverage will extend up to 100 feet from the building.
What Types of Businesses Need Commercial Property Insurance?
Essentially any business or workplace should have some kind of commercial property insurance. If you have a premises, or expensive tools and equipment, then it becomes even more important. Even small businesses could find themselves sunk if they lose inventory or their building becomes unusable and they do not have coverage.
Contractors should have insurance to protect themselves, their equipment, and the property of others when visiting job sites. Professional service providers should also have coverage even if working out of their home if they have clients coming for meetings and appointments. Essentially if you have a business with a premises, get your commercial property insured.
What Benefits Does Commercial Property Insurance Offer?
Every policy is different, so make sure that the one you choose has the protection you feel is vital for your business. The most common benefits are listed below.
Protection From Disasters
You might think that your property is well protected. You keep up with maintenance and your equipment is all safely cleaned and locked up every night. However, there are some things for which you can’t prepare. Winter storms, cold snaps, fires from other buildings or locations, and vandalism can all damage your property and cost you big dollars. Commercial property insurance can protect you from those costs and help you rebuild and repair.
Replacement and Repair Costs
When your building is damaged or destroyed, you will want to fix what’s broken or rebuild. After paying your deductible, commercial property insurance will help pay for repairing and rebuilding so that you can get your business back up and running again. If your building was consumed by fire, then property insurance will make sure that you get a new building, plus replacement of any equipment or other important contents that you lost inside. Without it, you would be stuck with no place to conduct business, and no money to replace what was lost.
Business Interruption
WHen the unthinkable happens, there is a very good chance that your business will be interrupted. After a fire, for example, the building might not be safe enough to enter for a period of time. Or, you may not be able to have customers inside because of a mold issue after a flood. Luckly, commercial property insurance will help by providing you with compensation for your business-related costs while you are not able to work. This can include paying your employees, so they don’t find other work in the meantime, paying utilities, and even temporarily relocating your business to get back on track faster.
Commercial Property Insurance Factors
There are several factors that insurance providers will take into account to determine your premiums. Keep these in mind while you are shopping around. They can include age, since the older a business is, the easier it is to get damaged. Your location will also play a part, since some areas are more dangerous than others, whether it be from the weather or from crime or other factors. The cost of replacing your property will also be considered, since some businesses have very expensive equipment that can cost hundreds of thousands of dollars in some cases. You can lower your premiums by installing safety guards, such as cameras, fending, and alarm systems.
Don’t leave your business unprotected! Commercial property insurance is vital to making sure that your business will not be ruined if the unthinkable should happen.
