A Primer On Commercial Property Insurance
Commercial property insurance is typically all that stands between a business owner and a major financial loss. Whether you own the building your company is using, lease it or work out of your residence, property insurance keeps your investment safe.
A commercial property insurance often varies, depending on the event that you seek protection from and the specific insurance chosen. The following questions are the most frequently asked when it comes to commercial property insurance, so let’s take a closer look at these common queries.
What Does Business Property Insurance Cover?
When you purchase commercial property insurance for your business, your building is protected, as well as your inventory, your outdoor signage, your landscaping, fencing, furniture, work-related equipment and anyone else’s property on the premises.
What Should I Know About Business Property Insurance?
Not only is a smart investment for any business owner out there to make, but it also keeps the business protected if there are any natural disasters or unforeseen events that lead to a prolonged period of closure. The physical assets of the company are protected, as well as its ability to remain viable in the face of windstorms or hurricanes.
What Are The Policy Basics?
While these policies will vary, they are categorized by certain events that lead to losses and specific insurance needs. Most policies cover a business in case of fire, theft, vehicle-related damages and acts of vandalism. Earthquake coverage can be added and building/equipment/inventory coverage is an essential part of any policy.
How Do I Prepare For My Initial Meeting With An Agent?
Taking inventory of your business is a great start. It is important to know what property needs insuring, as well as the replacement costs associated with said property.
Insurable property includes:
- The building that you are using to house your business. Those who are renting or leasing the building that they are using should also seek insurance for the property.
- All of the equipment used to carry out daily duties, including phones, computers, and furniture, even if it not actually owned by the business. Leased equipment requires insuring, too.
- Any valuable documents and accounting records.
How Do I Determine Losses?
A commercial property insurance plan reimburses the business owner for the actual cash value of each item lost or the replacement cost. Replacement costs are determined by the amount that it will cost to repair or rebuild property on the same premises and no monies are deducted for appreciation.
When the product needs to be replaced, the actual cash value is determined by the cost of purchasing new property of the same style and quality, without any depreciation.
If you need help learning more about how to insure your commercial property, schedule a consultation with your insurance agent.