Commercial Property Insurance


Commercial Property Insurance


Commercial Property Insurance is the fiscal protection of commercial properties from losses due to fire, theft, and natural disaster. This kind of coverage is needed by a variety of brick and mortar businesses such as retailers, manufacturers, non-profit organizations, and service-based operations.
Commercial insurance essentially works just like homeowner’s insurance. The key difference from home insurance is that businesses can deduct the cost of insurance premiums as an expense. For example, when determining how much a company should pay for their insurance premium, the value of the asset or building is the main factor. Therefore, the business would first take an inventory of all physical assets utilized at the property. This will help determine the best replacement value and level of coverage necessary. On the insurance carrier’s side, there are four key factors considered in designing the right policy:


• Location
Is the city or town the building is located in a fire protected area? Excellent fire protection equals lower insurance costs for the business.


• Construction
Is the building made of any combustible materials or fire-resistant materials? If the building is fire-resistant the company could earn a discount.


• Occupancy
How much will the property be occupied? The more tenants and hazardous work taking places such as cooking or auto repair, the more premiums will be affected. For example, an office building’s premium would be significantly less than an auto repair shop due to a lower risk of an accidental fire breaking out.


• Fire and Theft Protection
How far away is the property from the nearest fire station or hydrant? Does the company have a working fire alarm or security system? If the business has invested in a working security system or have easy and quick access to emergency assistance, then costs can be cut.


Types of Existing Coverage
• Direct Damage Property Insurance
Protection in case of any direct damage to property from a natural disaster.

• Worker’s Compensation
Coverage required by the law for employees who are unable to work due to injury or death on the job.

• Property/Equipment Insurance
Coverage of damaged personal property housed inside of a company building such as computers, inventory, or furniture.

• Business Auto Insurance
The coverage of cars owned by the company and driven by employees in case of an injury or accident.

• Business Interruption Insurance
Covers the lost income from having to close temporarily for damage repairs from a disaster.

Important Benefits of Commercial Property Insurance
• Minimizes that risk of financial loss
• Increases business credibility
• Financially secures assets needed for the business to run properly
• Protection in the case of any third-party lawsuits.
• Protection for both employers and employees.