Commercial property insurance is an important piece in your insurance coverage portfolio. It protects the components of your business that are subject to outside influences such as theft or fire. Property insurance can make you whole in the event you sustain a loss to any business property, be it a truck, store fixtures, inventory, raw materials, and so on.
Examples of commercial property coverage include:
- Real property (owned buildings and other structures)
- Contents (building contents, office equipment, etc.)
- Business Income (loss of income due to property damage or loss)
If you own your building, you are liable for a significant business investment – damage or loss to the building could result in loss of your business. Even if you don’t own your building, a loss of computers or other office equipment could be devastating.
What Am I Protected Against?
Most commercial property insurance policies are written on a special form, which means they cover anything that isn’t specifically excluded. This includes fire, theft, wind and hail, vandalism, damage by vehicle or aircraft, and much more.
Coverage is most often written on a replacement cost basis depending on the age of the building or contents. This means that the lost or damaged item will be replaced with a like item in today’s market.
Other Endorsements to Consider
There are many factors to consider when purchasing property insurance coverage including where your business is located, the age of the building, and what other businesses are located nearby. Some endorsements to discuss with your agent might include pollution coverage, difference in conditions (earthquake), and flood insurance.
How Much Coverage Is Enough?
Your Hayes Broker can help you determine how much property insurance coverage is enough to protect your business. Replacement cost coverage for buildings and contents can vary greatly from the market value for these items. It is important to take this into consideration when determining how much commercial property insurance you will need.