The Basics of Commercial Property Insurance

    Business owners that rent or own the buildings they operate in, or even work out of their homes, need commercial property insurance. It isn’t only about protecting a company office, but everything inside. Furniture, files, computer equipment, inventory, and more, are crucial components to your organization’s success.

     

    How will you replace it all if there is a fire? Will you have enough budget to cover this cost? An insurance policy will cover these expenses, including outdoor property features, such as signage, shrubbery, fencing, and other landscaping that sustains damage.

    Why Your Business Needs Commercial Property Insurance

    Because commercial property insurance protects your physical business assets should they get damaged or lost, every business stands to benefit from such a policy. So whether a natural disaster destroys your building, someone vandalizes the front of your building, or a car knocks over some of your parking lot fencing, you won’t have to worry about the cost of repairs or replacement.

     

    Below is a list of businesses that rely on commercial insurance to protect their physical assets:

     

    • Contractors
    • Tradespeople
    • Gift shops
    • Carpenters
    • Copywriters
    • Homebuilders
    • Landscapers
    • Painters
    • Welders
    • Construction companies
    • Financial advisors
    • Bakeries
    • Clothing stores
    • Restaurants
    • Electricians
    • Professional services
    • Web designers
    • Retail businesses
    • Photographers
    • Marketing consultants
    • Florists
    • Public relations specialists

    Commercial Property Insurance Benefits

    Insurers make it easy for businesses to buy coverage with simplified online forms and automated payments. But, before you buy, read on to learn about some of the benefits of these policies.

    Coverage for the Unexpected

    It’s impossible to predict everything that can go wrong when running a business. While you can prepare ahead to mitigate risks, some factors can’t be controlled. Natural disasters are a prime example of this reality and regularly cause billions of dollars of damage to commercial property annually.

     

    Whether a winter storm caused ice damage to your roof and landscaping or your building caught fire after a lightning strike, your best first step in protection is to be insured against these events.

    Covered Repairs

    When a company doesn’t have property insurance for its commercial building, for example, a door gets damaged during a break-in, it will have to shoulder the entire cost of that repair. If insured, this isn’t the case, which means you can focus on running your business while your insurance provider handles the expense.

    Quicker Recovery Process

    After your business sustains a loss, the recovery period can take some time to complete depending on the extent of the damage. Insurance can help speed this process up by getting financial benefits to you quickly, which means you can get back up and running faster. Without a policy to protect your assets, you risk a prolonged interruption of your operations, hurting your revenue even more.

    Mitigate Business Interruptions

    Businesses that experience property damage often can’t resume normal operations right away. Everyday bills won’t stop, including payroll. Commercial insurance can assist in covering many of these expenses until your company is back up and running.

    Replace Property After a Total Loss

    Imagine if your building sprinkler system has a faulty sensor and suddenly turns on and ruins thousands of dollars in company computer equipment. A commercial insurance policy can repair items if the expense doesn’t exceed the value or replace them with something new and comparable otherwise. Typically, the insurer wouldn’t deduct depreciation either.

     

    Without this coverage, you would have to rely on your own funds to replace the ruined computer systems in your office.

    How Much Commercial Property Insurance Costs

    It’s important to note that premiums for commercial property insurance depend on various factors. However, before you hesitate to get a policy, remember that the money saved on potential out-of-pocket costs for damages makes it well spent. When creating a quote or policy, insurers take the following elements into account:

    Age and Condition of the Property

    Whether you have an office custom-built or lease an 80’s era warehouse, your property’s age and current condition will affect your coverage premiums. While newer structures will have lower rates than an older building, if you plan to update an aging property, this could also affect your policy’s cost.

    Location

    Another factor that carries a significant impact on business property insurance is where its location. If your office is in a business park with limited access to fire hydrants or has frequent occurrences of theft and vandalism, your premium will reflect that risk.

    Cost of Replacing Your Property

    When your office or building suffers damage, your computers, equipment, records, and other assets could also be ruined. So, when your policy is being created, an insurer will also calculate how much it will cost to replace everything.

    The good news is that there are several ways your property features can help reduce your rate. Having a security system in place, replacing an aging roof, ensuring the gutter system is working and not in disrepair, updating the electrical system, and other improvements positively impact the cost.

    Get Covered Sooner Than Later

    If your business suffers a serious loss due to nature, crime, or other similar circumstances, you need protection from the financial damages. Work closely with a reputable provider to purchase tailored commercial property insurance in minutes and have peace of mind knowing your business will recover in the wake of a loss.

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