Commercial Property
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on Commercial Property insurance.
The Basics of Commercial Property Insurance
Commercial property insurance helps protect businesses from financial losses if their commercial property is damaged or destroyed. Commercial property insurance helps cover damage to your property caused by fires, severe weather, theft, and other events specified in your policy. Commercial Property Insurance helps protect the physical structure of your business. Property insurance can also help protect the physical assets of your business, such as buildings, machinery, furniture, inventory, and other property that you use in the course of doing business.
Commercial property insurance is essential to ensure proper risk management if your business owns or leases its business space. The coverage limits you need depend on your property's value and the type of business you have. It is essential to know what is covered and what is excluded from your commercial property insurance policy to ensure proper risk managment.
Key Coverage Provisions
The primary coverage provisions of commercial property insurance vary depending on the insurer. Typical coverage includes the building itself and any contents or inventory stored inside. Property insurance can also help cover loss of business income when the business is forced to close while the property is being repaired. You can customize your coverage according to your specific business; A general commercial property insurance policy typically includes the following:
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Building coverage: Property insurance protects the building itself, including any additions or permanently installed fixtures in the event of fire, vandalism, broken water pipe floods, and natural disasters such as lightning, wind, and hail.
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Business personal property: This coverage can help protect the contents of a business, such as computers, office furniture, and inventory.
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Equipment breakdown: This coverage can help protect a business from financial loss in the event that its machinery or equipment breaks down and causes damage to the property.
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Business interruption: Property insurance provides coverage for loss of income due to a covered event; the insurance company will pay you for lost revenue while your property is being repaired.
What’s Typically Not Covered?
Commercial property insurance is essential to help protect your commercial property from financial losses. However, it's important to understand the limitations of a commercial property insurance policy. Commercial property insurance generally does not cover damage caused by natural disasters and will need additional coverage for disasters such as; earthquakes, hurricanes, and floods. Most commercial property policies exclude coverage for mold, termites, and other forms of infestation. Businesses may be able to purchase separate policies to cover these risks, but it is important to note that standard commercial property insurance does not provide this protection. Other frequent items that are not covered by commercial property insurance can include the following:
Flood damage: Flooding is one of the most common natural disasters, but it’s also one of the excluded perils in typical commercial property insurance policies.
Wear and tear: Damage that occurs gradually over time, such as from weathering or everyday use, is generally not covered by commercial property insurance.
Maintenance failure: In case of malfunction due to a lack of regular maintenance, no coverage will be available. For example, if a boiler fails due to a lack of cleaning and inspection, the resulting damage will not be covered under a standard commercial property insurance policy.
War and terrorism: While acts of war and terrorism are becoming more common, they’re still typically excluded from standard commercial property insurance policies.
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