Business Property and Coverage to Protect Owners

Without commercial property insurance, it would be extremely difficult for a company to replace any business equipment that becomes damaged or stolen. They would be sufficiently compensated for their loss as long as they have an active policy in place after a covered event.

There are several factors that determine the amount of premiums paid for a particular policy. Coverage being provided would include the building, its contents, any loss of business income, etc., and would be based on the occupancy of the building, location of the property, and any applicable coinsurance requirements.

Specifics concerning this coverage

Like most policies, business or commercial property insurance has inclusions and exclusions. For example, most policies will pay you when your equipment is damaged by many common concerns like fire, theft, or windstorms. There are some things, such as floods and earthquakes, which are often excluded. You must buy a separate policy that addresses these issues.

Many commercial landlords often require their tenants to have some type of commercial property coverage for their own sake. Usually, they require that you purchase a policy that covers your personal contents in any leased space. Your lease should outline any potential insurance requirements.

The policy you decide on may vary slightly depending on the carrier you purchase your policy from. If you run a retail business and you own the premises where your store is located, having commercial property insurance will protect that building against a major loss in most scenarios. Similarly, if you were a doctor operating a private practice, this policy would cover your office contents, tenant improvements, and betterment’s.

You may be interested to know that a “Special Cause of Loss” form provides coverage for risks of direct physical loss unless excluded or limited. The amount of insurance and the coinsurance percentage must be the same for each cause of loss. Some property in offices may be written as a separate item under “Special Causes of Loss” and the remaining property may be written under a “Basic or Broad Causes of Loss” form.