As a small business owner, you likely have an extensive list of things to worry about. But one thing you shouldn't have to worry about is the safety and security of your company's property. It's even more important because if a report is to be believed, commercial property rates have increased by double-digit for two straight years. Any damage to it could cause a severe dent in the business finances.
That's where commercial property insurance comes in. It can help protect your investment against everything from theft and vandalism to natural disasters and other unfortunate events that might strike your location or workplace. Here's all you need to know about commercial property insurance.
Commercial Property Insurance Helps Protect Your Business
Commercial real estate insurance is a great way to protect your business. When running a small business, it can be hard to think about the day-to-day risks and responsibilities of owning a company. One way to alleviate some of this anxiety is to have an insurance policy that helps protect your business if something goes wrong.
Commercial property insurance is designed specifically for businesses like yours. It can help protect against common problems, including lawsuits, theft, and property damage due to natural disasters like fires and storms. Commercial property insurance might be right for you if you own or manage a commercial property, such as an office building or retail store.
You Can Customize Your Coverage
Commercial property insurance comes in all shapes and sizes, so it's no surprise that you can choose the amount of coverage you want (or are required to have). You can also customize the type of coverage you need. For example, if you run a hair styling business in your home or office, you might not need as much commercial property insurance as someone who owns an auto repair shop or a restaurant.
You can customize your deductible too. While many commercial property insurers offer standard deductibles for certain types of losses (such as fire damage), some allow more flexibility regarding how much money they want to pay before they start paying out on claims.
There Are Multiple Types of Property Insurance
It's important to know that there are multiple types of commercial property insurance, and they all provide different levels of protection. Depending on your needs as a business owner, you may want to choose one or more types of commercial property insurance coverage. For example, suppose you own an office building where people work and conduct business during the day but are empty at night and on weekends. In that case, you might consider purchasing both business interruption and content coverage.
This type of policy covers damages that occur to your building, such as fire or severe weather damage. It also includes loss or theft caused by vandalism or theft, liability claims against you or someone who has sued your company because they tripped over something in the parking lot, collapse due to earthquakes, explosions from natural gas leaks, etc. The most significant benefit of this type of policy is that it protects against losses that could destroy your entire business if not adequately insured against them.
Different Policies Offer Different Levels of Protection
Commercial property insurance is one of the most important things you can buy as a business owner. It protects all kinds of buildings, equipment, and personal property if they are destroyed or damaged by fire, storms, or other natural disasters. However, many different types of commercial property policies are on the market today.
These policies offer different levels of coverage and protection depending on your needs as a business owner, like personal items, land holdings, and buildings used for business purposes. Customizing your policy with these things in mind will accurately describe what is insured under each type. It can help determine whether or not a particular item will be covered by its policy or if it needs to be added separately through another section within your policy document called endorsements.
Commercial Property Insurance Covers More Than You May Think
According to industry experts, natural disasters worldwide incurred losses worth $32 billion in Q1 2022, half of which were covered by insurers. Commercial property insurance covers more than you might think. It's not just for protecting your business against theft, vandalism, and malicious mischief; it also provides coverage for many other types of losses.
For example, damage from fire, smoke, windstorm, or hail is covered under the property section of your policy (typically through an extended special form). The property section also includes water damage caused by bursting pipes and appliances. Earthquake and flood losses are covered under a separate endorsement that attaches to your policy after a major event has been declared by authorities.
Loss of Income Coverage Is Available
According to a report, 2,514,000 people did not work or worked less in March 2022 due to closed or lost business because of the pandemic. Loss of income coverage is available as part of your commercial property insurance policy.
This type of coverage will pay you if your business is shut down due to a covered loss or if you are unable to operate your business due to a covered loss. Loss of income will also reimburse you for any lost profits and wages caused by the property damage or destruction.
Even though the name sounds self-explanatory, there are some essential details about the loss of income that we want to make sure you know about:
- The business must not be closed for an entire year before receiving compensation under this provision. A temporary closure will also qualify for payment under this policy section.
- If an employee cannot work because they have been injured in an accident on the job, they can still receive compensation if they meet specific criteria (such as being disabled for more than 30 days).
A good understanding of commercial property insurance is essential for any business owner. It is important to understand the different types of coverage and how much it will cost your company.
This article has covered some basic information that should help you decide whether or not it is worth it for your business. If you still have questions, be sure to consult with an insurance agent or broker so they can provide more insight into what kind of coverage would be best suited for your needs.