Commercial Property Insurance
Commercial Property Insurance Information
Regardless of size or sector, your business likely relies on various property, belongings and equipment to maintain operations and productivity. If an accident or error causes these things to be damaged or otherwise nonfunctional, it can significantly impact your organization’s bottom line and future growth. Taking care of your property is essential in maintaining adequate loss control practices. With that in mind, it’s necessary to understand the benefits of commercial property insurance.
What Is Commercial Property Insurance?
Also known as business property insurance, commercial property insurance is a type of coverage that provides financial protection for property your company rents or owns. These policies generally include coverage for many common risks and perils that may transcend industry lines and threaten many different types of companies. For example, the following incidents can trigger a commercial property insurance policy:
How to Insure Commercial Property
Given the vast array of protection from potential incidents, commercial property coverage is an advisable investment for your business and an integral component of your insurance portfolio. When shopping for a policy, ensure your organization knows the finer details of the coverage. In most cases, commercial property insurance can be relied on to provide financial assistance in response to damages involving the following:
- Important documents
How to Estimate Insurance on Commercial Property
When determining your commercial property insurance needs, it’s essential to understand the different types of coverage included in your business’s policy. Insurance companies generally calculate how much financial assistance a business will get for insured damages according to one of the following:
- Actual cash value—These policies will provide your business with funds equal to replace items while considering depreciation.
- Replacement cost value—This type of coverage can compensate for the amount it would cost to purchase comparable or equivalent versions of damaged property.
- Fair market value—Property covered under these policies will be insured for its current market value.
Your business should ensure that its commercial property insurance includes adequate coverage limits. If claims exceed your policy’s coverage, you must pay for the remaining losses out of pocket. When determining necessary coverage limits, consider the following:
- Cost of fully rebuilding your structures
- Value of essential equipment
- Inventory or materials stored on-site
- Potential losses related to important documents or records
If you lease or rent buildings or office space, you may also be required to maintain certain levels of coverage by your landlord. Similarly, your lender may have commercial property insurance requirements if you’ve purchased a property with a mortgage.
Get the Right Coverage
At Primar Insurance Brokers, our dedicated agents have the experience and knowledge to help your organization assess and address its commercial property coverage needs. We will work with you to conduct a comprehensive analysis of your circumstances and ensure that your policy can secure your finances and future. Contact us today to get started.