Commercial Property Insurance Options

One of the most common types of business insurance products is commercial property insurance, which often provide the following coverages:

Building Insurance

If you own a commercial building, replacement cost coverage is needed. Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of the building. Determining the proper amount of coverage is critical to any insurance program.

Flood Insurance

Most commercial property policies and homeowners insurance policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from damage due to a flood. Coverage is available through the National Flood Insurance Program and other private insurance companies.

Business Personal Property Insurance

This provides you coverage for your business personal property at a specified location and covers furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off site to various locations, it is important that you have an inland marine policy (equipment or installation floater) to cover this property.

Business Income (Business Interruption Coverage)

This coverage reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered event, such as a fire. Business income insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, civil authorities’ coverage may start after a waiting period and last for two or more weeks. It is strongly recommended that all businesses acquire this coverage.

Electronic Data Processing (EDP)

This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.

Business Owners Policy (BOP)

A business insurance policy that combines property, liability and business interruption coverages for small to medium-sized businesses. This packaged set of coverages is generally less expensive than if each coverage was purchased separately. A Business Owners policy is typically available to businesses and industries that are viewed as having relatively low liability exposures.

To get a full list of coverages or learn more about this product, contact us today.

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