Your Guide to Commercial Property Insurance

Commercial properties are susceptible to unexpected damages and accidents that can be a potential financial burden for many businesses. The good news is that commercial property insurance shoulders the costs of these incidents.

Here’s a simple guide to help you navigate commercial property insurance to safeguard your business.

What is commercial property insurance?

This insurance type covers the expenses of repair or replacement when your business property is lost, stolen, or caused by problems within your property insurance policy (for example, faulty plumbing or flooding).

Following the business owner’s policy (BOP), property insurance often includes coverage for exterior fixtures like your commercial establishment’s signage. Another term for commercial property insurance is business property insurance.

What does commercial property insurance cover?

Commercial property insurance protects businesses and their assets from various types of damages. The specific coverage varies depending on the policy, but generally, it covers the following:

• Property damage: Damage to the physical structure of the property, including the building, equipment, and inventory.

• Business interruption: Covers lost income and operating expenses if your business can’t operate due to a covered loss.

• Liability: Legal expenses and damages if you are responsible for harm to someone else’s property.

• Theft and vandalism: This cover losses from these crimes within your property.

• Natural disasters: This covers losses from natural disasters such as floods, earthquakes, hurricanes, and wildfires.

It’s important to note that commercial property insurance policies can differ based on the specific coverage offered, deductibles, and limits. Carefully reviewing and comparing policies to ensure you have the coverage you need for your business is crucial.

How much does commercial property insurance cost?

Commercial property insurance costs differ depending on several factors. The property’s size and location, the business type, the coverage level required, and the insurer’s underwriting criteria all impact the cost.

Commercial property insurance can cost anywhere from a few hundred to several thousand dollars annually.

For an accurate estimate of the cost of commercial property insurance for your business, it’s best to get quotes from several brokers and compare their rates and coverage options. Thoroughly review the policy details to ensure you have adequate coverage for your business needs.

Who can benefit from commercial property insurance?

If you’re considering commercial property insurance, it’s essential to know who needs this insurance type to see if it’s the best fit for your business. Businesses that own or rent a property should consider getting commercial property insurance.

This criterion includes:

• Property managers who own the building where their company operates.

• Business owners who rent or lease a commercial space for business.

• Property owners who lease out space to other companies.

• Non-profit organisations that own or rent a property.

• Home-based businesses with valuable equipment or inventory.

A seasoned insurance broker can help you process the paperwork requirements towards getting property insurance for your business.

Do your research and read the fine print when obtaining commercial property insurance. This way, you can prevent shouldering costs you weren’t anticipating and get the most out of your coverage plan.