6 FAQs About Commercial Property Insurance
We know that commercial property insurance surfaces a lot of questions. In some cases, that leads to businesses being underinsured and receiving coverage that fails to address specific risks.
1. WHAT IS COMMERCIAL PROPERTY INSURANCE?
Let’s start with a primer. Commercial property insurance insures your business and its assets, including the building, against natural disasters, theft, and other qualified events. It works similarly to your private property insurance, where you pay premiums to maintain coverage and file claims when covered losses occur.
Two key differences are that it’s tailored to your business and its specific risks and provides higher coverage limits to protect more valuable assets. Additionally, it may offer coverage for employees as well.
2. WHY DO BUSINESSES NEED PROPERTY INSURANCE?
Every size and type of business benefits from commercial property insurance. For small businesses, this might mean having coverage that protects vital assets while staying within budget and without overspending on premiums.
BENEFITS INCLUDE
- Asset protection: Potential reimbursements for commercial property, including the building, fixtures, and equipment.
- Establish credibility: Attract new clients and partners with a robust insurance policy while meeting lender and compliance requirements.
- Rent protection: Potential insurance payments covering the cost of rent or lease payments if your property becomes unusable due to a covered circumstance.
- Paycheck security: Policies with income protection can provide insurance payments.
- Peace of mind: Stay focused on growth, knowing you have a safety net in place should a catastrophic event occur.
3. DO I NEED COMMERCIAL PROPERTY INSURANCE IF I HAVE A GENERAL LIABILITY POLICY?
Some general liability policies may include foundational commercial property coverage if stipulated in the underwriting, leaving some benefits managers to ask us if they need both. Regardless, here’s a breakdown of how coverage differs:
4. WHAT DOES PROPERTY INSURANCE NOT COVER?
Remember, when you partner with an insurance company, many types of coverage are available to address the specific risks of your business and industry.
Nevertheless, commercial property plans may not cover damage from common natural disasters like hurricanes, earthquakes, and floods unless stipulated. Additionally, it won’t cover any of the circumstances associated with a general liability policy, so it won’t reimburse you for claims related to bodily harm, advertising injuries, etc.
5. WHAT FACTORS ARE CONSIDERED IN DEVELOPING A POLICY?
As business insurance providers, we consider several different elements when individualizing commercial property coverage and premiums for an organization. Those key considerations may include:
- The property value
- Your location
- Industry type
- Security
- Claims history
6. HOW CAN I MAKE SURE I HAVE ENOUGH COVERAGE?
We recommend working with an insurance professional to evaluate your business’s unique needs, assess your property’s value, and determine coverage limits that won’t leave you underinsured. If you need any assistance or have questions about your coverage, we encourage you to contact us for support.
CUSTOM COMMERCIAL PROPERTY INSURANCE FOR YOUR BUSINESS
Every commercial property insurance plan we create is customized to the business, its risks, and other factors. Our expertise also allows us to recommend additional coverage that supports your financial future while closing the gap on potential liabilities.
We invite you to contact us for support if you’re looking to improve your business insurance portfolio. Discover the difference partnering with a leader in insurance can make.
