Commercial property insurance is one policy that is necessary for most businesses. Understanding how it applies and what it can do for your company helps you see the value in this investment. But you must figure out the basics of the policy and understand how it helps.
Does Your Business Need Commercial Property Insurance?
Although most businesses benefit from commercial property coverage, it does not apply to everyone. If your company operates out of a physical location you own or lease, you need a commercial policy. If you operate out of your home, you may assume that your homeowners’ insurance covers potential losses. Unfortunately, most homeowners’ policies exclude business property. You will need commercial insurance for everything in your home related to your business.
What Does Commercial Property Insurance Cover?
Every policy is different and has its own declaration pages for coverage, but there are some general standards for a commercial property insurance plan. Commercial property coverage includes losses to the building and property owned or leased by the business and the company’s outbuildings, equipment, and other materials on the property. Most commercial property plans also cover property your business does not own if it is on your company’s premises. It is essential if you house customer property for any reason, such as in-house repairs or customizations.
What Types of Losses Will Commercial Property Insurance Cover?
Most commercial property policies cover a variety of losses, including fire, lightning, windstorm, and hail damage. Your policy may also cover explosions, a variety of natural disasters, and even vandalism. Many policies cover certain theft losses, but you might need commercial theft coverage as well. Not only that, but the policy only covers the actual damages. Any disruption to your business operation does not apply. Business interruption coverage might help with those losses if your company cannot operate due to a loss covered by your commercial policy.
What Does Commercial Property Insurance Exclude?
Your policy may exclude flood-related losses because that falls under flood insurance even if your business is not in a flood plain. Most policies also exclude anything resulting from terrorism, earthquakes, and intentional actions. Read your policy exclusions closely so you can seek coverage for any gaps.
What Do You Include in Policy Quotes?
To get a reasonable premium estimate, consider the value of the structure, the value of the belongings inside the business, and the risk level of your operation. Higher-risk businesses and higher-value properties will lead to higher premiums.
Commercial property losses can add up to millions of dollars in repair costs and lost property. Without insurance, companies face devastating financial ramifications from losses like these. The right commercial property insurance ensures that your company’s exposure to these losses is minimal. It keeps your company running even in the face of natural disasters or unpredictable events. Make it a priority to protect your financial investment.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future knowing they are well protected.
Contact us today at (713) 977-6606.
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