Commercial Property Insurance protects your commercial property against destruction or damage. Individual insurers and policy will vary depending on the cause of damage. Specifications of coverage will vary.
This type of Property Insurance usually falls under two main categories…
Named Perils – covers specific causes of damage and covers only those causes. Fire Insurance is an example of Peril Coverage. If your damage is a result of high winds, you would not be covered if your named peril was Flood Insurance.
Broad Coverage – is known as All Risk Coverage Policy. This coverage will cost you more but will cover you for any cause of damage that has not been specifically omitted when your policy was first created.
Both of these policies normally cover loss of revenue or interrupted business operations and sales.
Under an All Risk Coverage, the owner is protected for loss due to theft, which includes break-ins. This could also be added to your Commercial Insurance Policy and will cover payroll transfers and company payroll no matter the amount or size, as long as it doesn’t surpass the limits originally stated in the policy.
Broken equipment – Commercial Property Insurance can also cover the repair and/or replacement of damaged equipment. This includes damage during maintenance. Electronic equipment protection is usually and added policy or an addendum to your already existing All Risk Policy.
Signs and Goods – This insurance also covers signs being knocked out, signs on glass surfaces on building, exterior affixed signs or free-standing signs on your property. You can also include loss of signs due to accidents during transportation.
Liability Protection – This is coverage for any potential liability due to accidents or damage. Your Commercial Insurance Policy should always include this very important and much needed protection. It covers employee injuries, customer injuries or a non-involved person impacted by employees or while transporting goods.
This insurance will protect your assets if you are being sued for alleged injuries or property damages. This is a ‘must have’ on you Commercial Property Insurance Policy. This can be purchased separately or be included in your general policy, if you have higher risks, you may want to think about buying a separate liability insurance policy. Your limits will be much bigger on a separate policy.
Two very important factors need to be considered whether you are purchasing separate coverage or not is to understand what type of business you have exactly. What does your business produce and litigations laws and procedures in your own state.
Covered liability claims include: Property damage, personal injury, advertising injuries, and bodily injuries. The insurer is obligated to pay the defense as well as legal costs. Remember that punitive damages are not covered!
Your Policy will state the maximum the insurer will pay. For example, if a business has a one million “occurrence” cap and is sued for 1.5 million, the insurer pays I million and you would end up paying a half-million. To cover these kinds of situations, one can purchase Umbrella Liability Insurance which will then cover the exceeding amount not listed previously on your policy.
Speak with our agents to develop a plan suitable to your needs. Call us at (813) 962-3082.