What is Commercial Property Insurance?
Commercial Property Insurance (aka Business Property Ins) protects the building your business owns or leases as well as your business personal property, including tools and equipment, inventory, and furniture. Lost income for when business operations are suspended due to a covered loss are also covered.
Who Needs Business Property Insurance?
You might want to consider this coverage if you…
- Own a commercial office or building.
- Rent a commercial office or storage space.
- Have valuable property, such as computers or specialized tools.
- Have property you rely on to run your business.
Worth noting: many commercial landlords require their tenants to have some Commercial Property coverage. Usually, they want you to purchase a policy that covers only your contents in the leased space. Read your lease carefully to check for potential insurance requirements.
What Does Commercial Property Insurance Cover?
Commercial Property Insurance can pay for business property that is stolen, damaged, or destroyed. That property typically includes…
- Your building. This usually means the structure, but it can include permanently installed fixtures, machinery, and equipment.
- Contents of your building. This includes items that can be easily taken out, like inventory, office equipment, and other supplies.
- Other people's property. This category includes items that are left in your care, custody, or control. For example, a customer might use an outlet on your premises to charge her laptop. Once it's in your care, you could be responsible if it's damaged.
Like most policies, business Property Insurance has inclusions and exclusions. For example, most Property Insurance pays when your property is damaged by common problems like fire, theft, or windstorms. But in most policies floods and earthquakes are excluded.
Read your policy carefully. Ask your agent if you're concerned that a specific kind of risk may not be covered. They can often help you find ways to increase your coverage.
Why Do Most People Get a Business Owner's Policy (BOP)?
The BOP combines two important coverages that most businesses need for a discounted price: Commercial Liability and General Liability. Coverages that aren't included in a commercial policy like medical expenses, bodily injury, and protection against libel and slander lawsuits would be covered in a BOP, in addition to property.
Having quality, comprehensive protection for your building and all your property is essential for your peace of mind. Still have questions about Commercial Property Insurance? Talk to a Builders' Choice agent today!