Understanding Commercial Property Insurance

If you own a business, you need commercial property insurance. It is designed both for commercial properties that you rent, own, or conduct commercial business out of. Before purchasing a commercial property insurance policy, it is important to understand how it works and how it benefits you.

What Commercial Property Insurance Covers

A commercial property insurance policy can be purchased both by someone who owns a commercial property and by someone who is leasing it. There are specific types of benefits that a commercial property insurance policy can provide you with.

Natural Disasters: If a natural disaster strikes, such as a windstorm, hailstorm, tornado, or hurricane, then you are going to need help cleaning up the mess that is made. This policy will assist you with that.

Breaking and Entering: If someone breaks into your building, they can cause a lot of damage. They may vandalize the property. They may steal inventory or equipment. Whatever they do to the inside of your business, your property insurance will have you covered. 

Bodily Injury: Most commercial property policies include some type of bodily injury liability coverage. So if someone falls down or gets hurt on the premises of your business, your insurance will cover any settlements, medical costs, and legal expenses.

These are just a few of the things that a commercial property insurance policy is designed to cover. 

The Cost of Commercial Property Insurance

Commercial property insurance's cost is hard to just guess. It depends on a wide range of factors that an insurance company uses to determine the level of risk involved with providing you with insurance. Here are a few key factors that they will take into consideration: 

Value: The value of the building and all the assets in the building are important factors since you need to have insurance that will cover the base value of or exceed the value of the building and its assets. 

Location: Where the property is located can impact the insurance in a variety of ways. Is it located somewhere with lots of natural disasters? Is it located in a crime-free or high-crime area of town? How far is it from the closest fire station? 

Construction Quality: The quality of the construction impacts the function and safety of the building. Was it made with fireproof materials? How old are the electrical, plumbing, and HVAC systems? 

Fire and Theft Protection: How is the property protected against fire and theft? Are there fire alarms, smoke alarms, and sprinkler systems in place? What type of security system is in place? 

Occupancy:  What industry is your business in? Different types of businesses carry more or less risk. 

These are just a few of the things that the insurance company is going to want to know in order to determine what rates to charge you. Whatever they charge you, it is worth it to have insurance that protects your business property and all your belongings inside of it. 

For more information, contact an insurance agency, such as Rafail Insurance Agency.