What is commercial property insurance?
Table of Contents
- What is commercial property insurance?
- Benefits of commercial property insurance
- How is commercial property insurance calculated?
- Does commercial property insurance cover theft or vandalism?
- What are some business assets commercial property insurance covers?
- More ways to protect your business
- Can we help you prevent claims from happening?
- Other types of coverage to consider
Whether you’re a contractor, you run a small restaurant, or you’re an automotive dealer, you and your employees rely on your tools and devices. You need to protect your property, whether that includes buildings, equipment, machinery, or computers. That’s where commercial property insurance comes in—and we can help!
What is commercial property insurance?
Commercial property insurance can help cover your building if you own it (or if you’re responsible for it, according to your lease contract), but also its contents.
Commercial property insurance can help cover your building if you own it (or if you’re responsible for it, according to your lease contract), but also its contents. From equipment, furniture, and fixtures to tools, machinery, and the property of others, you have a good deal of assets to protect.
Even when your property is away from your business premises – or in transit – you’ll need support. If you suffer a covered loss, the right commercial property policy is designed to help with repair costs and get you back to business quickly.
Benefits of commercial property insurance:
- Recovery following a loss: The longer your operations are sidelined or slowed, the worse the experience can become. If you suffer from an insured peril, the right policy can help get your business back up and running quickly, helping to mitigate the long-term effects of the loss. By limiting your business’ downtime, you also protect your reputation with your customers.
- Repair costs: If your company suffers from a covered loss, your commercial property insurance policy is designed to help with the necessary repair costs. For instance, if the door to your commercial space is vandalized, preventing customers from entering the building, your policy should help get the repairs done quickly and help protect your bottom line.
- Replacement costs: If your business suffers from a loss that’s too extensive for repairs, commercial property insurance can help with the replacement of the damaged property. For example, if you own a restaurant and a flood destroys some of your kitchen appliances, your commercial property insurance policy can help by replacing the damaged property with new equipment.
- Business interruption coverage: If you suffer a covered loss, your business will likely have to shut down for some time or reduce operations. The right commercial property insurance policy may replace a source of income that’s disrupted or reduced, so you can keep up with bills, payroll, and other expenses until you’re back on your feet.
- Unexpected losses: Despite all your preparations, you can’t always control what happens to your business. Natural disasters, like fires, winter storms, hail, and flooding, can cause sudden property damage. Your commercial property policy may cover these damages that result from forces outside your control.
How is commercial property insurance calculated?
- Location: Where your business is located can affect the cost of your insurance. For instance, if you operate in an area that’s particularly prone to flooding, your coverage and premium may reflect that risk. The same is true for auto insurance: your premium may be higher depending on where you’re driving, and what you’re using the car for (like transporting goods versus driving yourself to the jobsite).
- Replacement costs: Imagine your business suffered a major loss that resulted in you needing to replace not only the building you operate out of, but everything inside as well. How much would it cost to replace all of these items? That amount may affect your premium amount.
The type of building: Your premium can be affected by a number of things, including the type of construction, public fire protection, and the building occupancy (even the occupancy of others that share the building with you). - Electrical work and plumbing: Water damage can be a major concern, which is why plumbing in your building is a key factor in determining your coverage needs and the cost of your premium. As electrical systems age, they are also more susceptible to things like arcing and short circuits which can lead to fires. Again, this will affect your premiums.
Does commercial property insurance cover theft or vandalism?
Yes, it can cover theft or vandalism, and much more. From fire damage or destruction of your building/its contents to damage caused by falling objects, malfunctioning equipment, to natural hazards like hail damage.
What are some business assets commercial property insurance covers?
Commercial property insurance can insure a broad variety of business property, such as:
- Equipment, inventory and supplies
- Office furniture and fixtures
- Electronics and computers
- Personal property of employees while on-site and customer property at your business site
Commercial property insurance also protects lighting systems, windows, outdoor signs, landscaping and fencing. Even tools and equipment in transit or are used off-site for business purposes may be covered.
More ways to protect your business:
- Comprehensive crime
This feature primarily targets employee dishonesty and theft or robbery by others. It prov