Commercial Property Insurance
Commercial Property Insurance protects the property business owners rely on to conduct business. If business owner loses their property to a covered event, Commercial Property coverage pays the repair or replacement costs up to the policy’s stated limits.
What Is Commercial Property Insurance?
Commercial Property Insurance provides clients the ability to help recover when certain disasters jeopardize their business assets and real estate. Covered events might include fire, windstorms, theft, or vandalism. The insured can use the payout from their Commercial Property policy to repair or replace items such as.. Office buildings, Computers, Furniture, Inventory and Equipment.
Many Commercial Insurance policies also include Business Interruption Insurance. This policy covers up to twelve months of lost income when certain events force your client to put their business operations on hold. For example, if a fire destroys a business owners workplace, Business Interruption Insurance can pay for the ongoing costs of keeping your client’s business afloat when it can’t generate revenue.
What Does Commercial Property Insurance Cover?
Buildings. The physical location of your client’s business is covered. If the business owner owns the space, they can select a policy that covers the building in its entirety. If your client rents, they might look for a policy that only covers the contents of the space.
Personal business property. This coverage provides protection for the furniture, inventory, supplies, and equipment owned by your client’s business. Sometimes the property is covered even when it is somewhere other than your client’s primary place of business. For example, if your client takes a laptop to an offsite meeting and damages it, Commercial Property Insurance can pay to repair or replace it.
Some policies limit coverage during certain events, such as a major workforce reduction, a merger, or an acquisition. They typically don’t cover intentional or criminal acts, either.
Managing Commercial Property Insurance Costs
Commercial Property Insurance is an expense for any business owner, especially if they have lots of costly equipment. Luckily, there are options available to keep your client’s costs manageable.
The first option is a Business Owner’s Policy, or BOP . Created for low-risk, small businesses, BOPs bundle Commercial Property and General Liability Insurance into one package at a reduced rate.
Understanding the different types of coverage:
Open perils coverage. These policies provide coverage for any incident unless it is specifically excluded in the policy. Typically, perils like fire, wind, smoke, theft, and vandalism are covered. This coverage protects small businesses from the majority of risks they are most likely to face.
Named perils coverage. These policies cover only the incidents listed in the policy. Your clients may want to purchase this type of coverage when their business is in a high-risk area for a specific peril, such as a flood or an earthquake. Named perils coverage is usually less expensive because it covers only the specific events listed in the policy.
Finally, and something VERY IMPORTANT is understanding how to insure business assets at their replacement value or their actual-cash value. Replacement-value coverage might cost more, but it covers the cost of purchasing brand new replacement items. Actual-cash-value coverage means your client will only receive a payout equivalent to the depreciated value of the item.
Contact us today to learn more about California Commercial Property Insurance. One of our dedicated agents will be happy to provide you with a thorough coverage evaluation, as well as offer you a free quote right now! Give us a call at 714.563.4333 or send us your information by using the form below.