What is Commercial Property Insurance
Commercial property insurance is designed to protect your business in the event of a covered loss. It is usually carried by a variety of businesses, including manufacturers, retailers, service-oriented companies as well as different organizations. Commercial property insurance is especially handy for those businesses that use expensive equipment. In fact, many business owners buy commercial property coverage as part of their BOP policy. Coverage plans vary from policy to policy but are typically categorized by the type of event causing the loss, and by what is covered in particular.
What does it cover?
Depending on the terms of your policy, it may protect the commercial property from such perils as natural disaster, theft, vandalism, accidents and more. Here are examples of important aspects of your business that will be covered by commercial property policy:
- Buildings
- Fixtures
- Furniture
- Supplies
- Equipment
- Outdoor Sign
How much does it cost?
The cost of commercial property insurance largely depends on the value of all of your business assets, including your building. Before purchasing coverage, a business should take an inventory of their physical assets on their property. It will help determine what exactly is indeed worth insuring and what will be the cost of the replacement. Other factors also determine the cost of the coverage such as:
Location
Is the location/area prone to storms or other natural disasters? Buildings located in areas with good fire protection usually cost less to insure than buildings in areas with limited fire protection.
Construction
Is your building constructed with fire-resistant materials? Buildings made of potentially inflammable materials will have higher premiums compared to those made of fire-resistant materials that might get a discount.
Occupancy
What is the purpose for which property is used. ? The building’s usage also affects its fire rating. For example, an office building will most likely rate better than a restaurant or auto repair shop because it has less hazardous sources that are potentially prone to fire.
Fire and theft protection
How far is the nearest fire hydrant or fire station? Does your business have a fire alarm and/or sprinkler system?
