Commercial property insurance is important for many reasons. No one is safe from natural disasters or malicious damage caused during a break-in. If you don’t have adequate insurance coverage you could find yourself at a business loss because you can’t pay for replacing your building and equipment.
There are three main types of commercial property insurance and you should read the terms and conditions of each one to make sure that you are getting the coverage that meets your needs. Basic policies will cover things such as fire and storm damage, a vehicle crashing into your office or an airplane dropping onto your roof. Broad policies will cover the same as the basic policy as well as water damage and your roof caving in under heavy snow. Water damage coverage any leaking from taps or burst pipes, but won’t include floods or tsunamis. The third type of commercial property insurance is special form, which will cover everything apart from earthquakes, terrorism, nuclear catastrophes and war. All three policies will offer two types of repayment in the event of you putting in a claim. The first kind is replacement cost whereby the insurers will replace your building and equipment with new no matter the age and state of the building or equipment. The second kind is current cash rate repayment, which means that the insurer will pay towards replacing your office and equipment taking into account their age and downgrading through wear and tear.
Just as no two businesses have the same needs. so commercial property insurance packages differ. If you work on your own for example you don’t need employee personal property coverage, just as you don’t need building insurance if you are renting your office. If you are a lawyer or an architect you might want to insure your paperwork. You should get coverage for business interruption insurance to help if you can’t work after damage or theft. Crime coverage is also essential especially if your workplace is in a high-crime area. This will cover you for theft, property damage during a break-in and forgery if your check book or other payment methods are stolen.
Before signing a commercial property insurance contract you should do some shopping around first to compare premiums and coverage. Don’t get the cheapest offer until you have made sure that it gives you the coverage you need. Read all the fine print and check up on deductibles. It is also a good idea to make sure that the insurance company is licensed to do business in your state. If it is a surplus lines company, there are no federal or state guarantees of payment. This could be huge if there is a huge natural disaster in your area and you’re with a small insurance company, but it’s your choice in the end. You should also check the company’s rating score to be certain that they will be able to meet any eventual claim you put in.