Commercial Property Insurance Coverage
A commercial property insurance policy can save your business in case the worst happens. It’s especially useful if you live in a city that’s prone to extreme weather conditions such as; earthquakes, fires, floods, tornados, hurricanes and other unfortunate events that may cause damage to your property.
What does commercial building insurance cover?
Commercial Property insurance protects a commercial building and its assets from damage or theft. An organization that engages in commercial activity or owns a commercial property can get commercial insurance. This article will show you the ins and outs of a commercial property insurance policy. Let’s explore.
Commercial property insurance protects a company’s assets. You can get commercial insurance even if work from home or have a mobile business. It will cover your business from unforeseen events, such as theft, natural disaster, or fire.
How Much Does Commercial Property Insurance Cost?
The average cost of a commercial property insurance policy is around $1,000 annually. However, the cost of commercial building insurance depends on a variety of factors, such as the building and the asset value. A mid-sized business could pay between $3,000 to $5,000 a year if an insurance company deems it a high risk.
- Example: A building comprised of flammable materials will cost more in premiums. On the other hand, buildings with fire-resistant features will be cheaper to insure.
Insurance companies will also assess other factors, such as how far the building is from a fire hydrant. Or, a company could pay less in premiums if the building has a security alarm.
What Does Commercial Property Insurance Cover?
Commercial property coverage applies to any item contained within a building, including the domicile itself. And, the policy protects any object on the premises. Overall, an insurance policy can cover the following items:
- Outside signs
- Office equipment
- Files and documents
- Hardware and software
- Landscaping
- Company products
For more information and specifics on on what commercial business property covers, contact one of our Insurance broker agents who specialize in commercial property on our contact us page
Who Needs Business Property Insurance?
Business owners from all walks of life can benefit from commercial coverage. The following parties typically have a commercial policy:
- Non-profits
- Manufacturers
- Retailers
- LLCs
- Corporations
Moreover, an organization that retains valuable assets should have commercial insurance.
How to Choose Business Property Insurance that Fits Your Budget
If you’re shopping for commercial business property insurance on a budget, you must know the difference between replacement-value benefits and cash-value benefits. With a replacement-value policy, your insurer will replace lost or damaged items at a brand-new price.
On the other hand, actual-cash benefits will replace objects according to the depreciated value. If you’re shopping on a budget, choose the cash-benefits policy to pay lower premiums.
You can also take security precautions to make your business a safer place. Buildings with enhanced security are cheaper to insure.
Is Commercial Property Insurance Worth the Investment?
Commercial business property insurance is worth the price if you have inventory or equipment of any kind. Lost or damaged merchandise could cripple a business.
A commercial business property insurance policy will cover all items on the property. More importantly, it will cover all infrastructure in the event of a fire or natural disaster.
Interested in reading more? Click here to learn more about commercial auto, commercial general liability and other types of business insurance
