Commercial Property Insurance

Perhaps you’ve heard that having property insurance for your business is essential, but you haven’t got around to sorting it out yet. We’re here to tell you why it is so vital and how it is going to protect you and your business. 

One of the main points of protection commercial property insurance provides you is the building, its contents, and some exterior fixtures. That means the physical assets of your business are protected from fires, burst pipes, storm damage, and even robberies. Its aim is to assist you in paying for any damage your property suffers.

Even small companies need to protect their assets; you don’t want a disaster to wreck your property or put a halt to your operations. This post looks at what commercial property insurance is exactly, factors to consider when taking out property insurance, what it covers, and how Insurance 4 Small Business can help.

What Is Commercial Property Insurance?

As we mentioned, commercial property insurance covers any business property from risks like fire, theft, and natural disasters. Often you’ll find an insurer who will bundle your property insurance with other forms like commercial general liability insurance. 

If your company has expensive equipment worth a lot of money, it’s likely your commercial property insurance will be a significant expense. The one up-side to this, though, is that your business can deduct the cost of your commercial property insurance premiums as expenses. 

What Determines the Cost of Commercial Property Insurance?

Of course, determining the cost of your insurance premium largely depends on the value of your business assets. So before even meeting with an insurer, take inventory of your assets stationed on your property. Other factors that come into place are based on risk; these include:

  • Location: Is your commercial building far outside of the city limits and therefore without excellent fire protection services? Is your building situated on a flood plain or in a high storm area? These factors will push up your premiums.
  • Construction: What is your building made out of – combustible materials or fire-resistant materials? These will all help determine the pricing of your premiums.
  • Occupancy: What is your building being used for? If your building is being used as an office is considered low-risk compared to a restaurant.
  • Security: Do you have a fire alarm and sprinkler system? Or a security system up and running? All of this will help lower your premiums. 
  • Natural Disasters: If your building is located in an area that routinely sees natural disasters like tornadoes, wildfires, or flooding, unfortunately, your premiums are going to rise. 

What does commercial property insurance cover?

Typically, commercial property insurance will cover your building along with the equipment, tools, inventory, supplies, computer and tech, furniture, and business records. It will also cover outside fixtures such as fencing and signage. 

There are two types of policies:

  • Named perils policy: This covers costs only from problems that have been listed explicitly, such as fire, theft, vandalism, etc. 
  • Open perils policy: This gives more extensive protection and will cover any issue except specific exclusions. Of course, this will cost more. 

You can expect coverage of your building, everything in it and just outside of it, including:

  • Computers
  • Furniture and equipment
  • Exterior signs
  • Fence and landscaping
  • Important documents
  • Inventory
  • Others’ property

Should a Home-Based Business Have Commercial Property Insurance? 

Home-based businesses are often covered – for some aspects of the business – through a homeowners insurance policy, and, depending on the size of your business, this may be sufficient. But commercial property insurance provides more coverage and can better protect a company, its assets, and equipment. So it’s worth considering. 

How Insurance 4 Small Business Can Help

Selecting the correct insurance for a business is not a task to be taken lightly and demands the expertise of insurance professionals and financial planners to do it correctly. Your insurance needs may require various types of insurance and the involvement of more than one insurance company or agent. This may sound like a lot, but i4SB has made what could be a confusing and expensive process simple.

Our process begins with a simple online questionnaire that we have designed to discover all the insurance needs of your business. We then consider factors such as the state your company operates in, the type of business, coverage amounts, reasonable pricing, etc. Based on specific needs, we contact the insurance expert best suited to your particular kind of business. And a partnership is made. 

It costs you nothing to fill out the survey, and you are under no obligation to buy a product from any of the insurance companies we match you with.

We’d love to hear from you; contact us via our contact form online or with customer service at 1 (505) 880-2143.