Business property insurance, commonly known as commercial property insurance is designed to protect commercial property from risk. Commercial property insurance covers you from perils such as theft, fire, and natural disasters.
There are a variety of businesses that may carry commercial property insurance. Retailers, manufacturers, not for profit, and service oriented business may carry commercial property insurance. Typically, commercial property insurance is bundled with other business insurance policies, such as commercial general liability insurance.
Most businesses need a good commercial property insurance policy. This applies whether you own the property, lease it or work from home. One of the more important parts of a business owners policy (BOP) is commercial property insurance. It will protect the businesses building, exterior fixtures, like a fence or sign.
Commercial property insurance
Commercial property insurance will protect your businesses physical assets from explosions, fires, theft, vandalism, storms and burst pipes. If you’re looking for coverage for earthquakes and flooding you will need to look into an earthquake insurance policy or a flood insurance policy.
Understanding commercial property insurance
When it comes to commercial property insurance it can end up being a major expense for most businesses that use tool and equipment that can be valued in the millions to billions of dollars. For example railroads and manufactures may be vulnerable to those risks.
Commercial property insurance is very similar to the same insurance you may use to cover your home and personal property. Although, businesses will have the option to deduct the cost of commercial property insurance premiums as expenses.
Commercial property insurance usually does not cover losses from tenants using the building. When determining how much a company should pay for a commercial property insurance policy the value of the building and the companies assets as well as the building will play very important factors.
When you’re looking for a commercial property insurance policy you may want to take an inventory of everything of value you may want covered under the policy. This may come in handy when trying to determine the amount of coverage you need.
How much will my commercial property insurance cost?
The value of the equipment within the building as well as the cost to rebuild if the worst were to happen will help determine the cost of your insurance premium. A few of the more common factors may also be as follows;
- Location. Is the area prone to storms and other natural disasters?
- Construction. Is your building constructed with fireproof materials? Does it have new or upgraded electrical wiring, plumbing and HVAC?
- Occupancy. What is your industry? A realtor’s office generally carries less risk than a restaurant or repair shop.
- Fire and theft protection. How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or sprinkler system? How about a security system?
Commercial property insurance may cover;
Commercial property insurance will cover the building, the contents in the building and surrounding it, some of what may be covered include;
- Computers
- Furniture and equipment
- Exterior signs
- Fence and landscaping
- Important documents
- Inventory
- Others’ property
Commercial property insurance is a must for most businesses. Whether you have a lot of valuable equipment or just want to protect your business from risk, as a business owner it is always wise to look at covering the company. At Beacon Business Insurance we specialize in commercial property insurance and covering business owners like yourself with business property insurance you can trust. Give us a call today for a free quote! 916 273-8391
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