Types of commercial property insurance
From the day an industrialist starts a business, he exposes himself to certain risks. Fortunately, businesses have access to a wide range of insurance types to cushion them against these dangers. One of the most common types of business coverage is commercial property insurance, which provides a wide range of coverage for buildings, inventory, equipment, tools, and more. However, it’s one of the most important ‘protective’ investments that a small business owner can make to protect the future of his business. Further, let’s take a look at different types of commercial property insurance to safeguard your business from a major or minor loss.
Commercial property insurance
Commercial property insurance is insurance used to cover assets and equipment from the risk of disasters. Different types of properties and equipment are mediated for commercial property insurance. A variety of businesses including manufacturers, service-oriented businesses, retailers, and not-for-profit organizations carry commercial property insurance.
Property insurance policies come in two basic forms
- All-risk policies, covering a baggy range of incidents and perils except those noted in the policy.
- Peril-specific policies that cover losses from only those pitfalls listed. Examples of these encompass flood, fire, offence, and business interruption surety.
Property to consider for commercial property insurance
- All office attachments, including computers, phone systems, and furniture, whether they're owned or leased
- The building that houses your trade, including if it is owned or rented
- Manufacturing or processing equipment
- Accounting records and essential company documents
- Fence and landscaping
- Inventory kept in stock
- Signs and satellite dishes
What doesn’t commercial property insurance cover?
Commercial property insurance doesn’t cover a claim if:
- One of your employees puts a hole in your client’s wall
- Your customer trips over a box in your office and hurts themselves
- You get into an accident while making a delivery to a customer
Types of commercial property insurance
- Builders Risk Insurance: This builder’s risk insurance policy covers losses, such as those due to a windstorm, while your building is under construction.
- Business Interruption Insurance: Business interruption insurance covers lost earnings and expenses resulting from property damage or loss. Those include items such as salaries, rent, and taxes.
- Boiler and Machinery Insurance: Boiler and machinery insurance also referred to as mechanical breakdown or equipment breakdown coverage provides coverage for the accidental breakdown of boilers, machinery, and equipment.
- Crime Insurance: Crime insurance protects the small business owner against theft, stock, robbery, and burglary of cash, securities, and fixtures, whether from third parties or employees.
- Glass Insurance: Glass insurance covers fragmented store windows and plate glass windows.
- Fidelity Bonds: Fidelity bonds are another type of business backing that provides coverage when a bonded employee steals money or business property.
- Debris Removal Insurance: Debris removal security covers the cost of removing debris. Thus, if your building is affected by a flood, fire, or other storms, debris removal commercial property insurance will pay for the cost of removing debris from your property.
- Inland Marine Insurance: Inland marine insurance covers property/assets in transit and other people's property on your premises. For example, this policy would cover fire-damage to customers' clothing from a fire at your dry cleaning business.
- Tenants Insurance: This insurance is another type of commercial property insurance that covers damages to the building due to employee negligence or when making improvements to your rental units.
- Ordinance/Law Insurance: Ordinance insurance, also known as law insurance, provides coverage for expenses relating to demolishing and rebuilding your building to code when your building has been destroyed by a certain percentage, which is typically 50 percent.
- Liability Insurance: Liability insurance covers damages that you cause to third parties. If someone sues you for intimate injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy.
- Workers Compensation Insurance: Workers' compensation security covers you for an employee's on the job injuries.
- Directors’ and Officers' Liability Insurance: This type of insurance is generally acquired by corporations and nonprofit organizations to cover the costs of lawsuits against directors and officers.
- Flood insurance: This insurance is sometimes provided by insurance companies if a business is in an area with low risk. Most flood insurance is provided only by the National Flood Insurance Program.
- Malpractice Insurance: Professional liability or malpractice coverage pays for losses resulting from injuries to third parties when a professional's conduct falls below the profession's standard of care.
- Windstorm and hail insurance: This policy can protect you if you are in a high-risk area for such events.
In conclusion
Your business is unique! Commercial property insurance is an integral part of business law and is offered by leading attorneys and consultancies countrywide. The coverage will cover all exposures particularly those under specific named policies.
