It’s important that as the owner of a commercial property, you have adequate insurance to help protect yourself in the event of potentially harmful incidents such as fire, theft, storm damage, traumatic events and power outages, to name but a few. A comprehensive insurance policy may also cover you for any loss of income, or an increase in business expenses that result from any damage that has been incurred. To help you decide what type of coverage would best protect your commercial property, check out the following advice and guidance:
What is covered by commercial property insurance?
Covering your building and all of its contents, along with any exterior fixtures associated with it, commercial property insurance covers your computers, furniture and other equipment, important documents and records, and any inventory stored on the premises. Coverage also extends to cover damages caused by such things as a burst water pipe, vandalism and theft.
Similar to homeowner’s insurance, commercial property insurance doesn’t typically cover earthquakes, floods and other perils unless they have been specifically added to the policy.
Commercial property insurance and theft:
Should any items owned by your business be moved out of the premises, they can no longer be classed as personal business property, and are subsequently reclassified as ‘inland marine’. A separate inland marine policy must then be taken out in order for it to be covered at all; a commercial property insurance policy will not cover these items. However, if you do have items of significant value or importance that aren’t kept at your business premises, then you must ensure that ‘inland marine’ is part of your commercial property insurance.
To be more specific, equipment or business contents that have been moved more than 100 feet from the location listed on the policy, will no longer be insured by your standard commercial property policy.
How much does it cost to insure a commercial property?
There are several factors that can have an impact upon the cost of a commercial property insurance policy, such as:
- Construction of the property
How old the building is and what condition it’s in can have a significant effect on insurance rates; if fire-retardant materials were used, it can reduce rates, while dated plumbing and electrical systems can bump it up.
The location of your property can also have a significant impact upon insurance costs; if you live in a flood prone zone or high-crime area, rates can rise substantially.
- The type of business carried out in the property
The industry that you work in can affect your insurance costs, as can the number of customers and employees that you have.
- Existing measures of protection
If a commercial property has a robust security system in place, along with fire alarms and other security measures, this can significantly reduce insurance costs.
To find out whether your commercial property has adequate coverage, or to know more about upgrading your existing insurance package, talk to a local, reputable insurance company today.