Commercial Property Insurance

Commercial property insurance for business owners covers many types of losses and damages to a companies’ property.

Common Coverage Types for Business Property Insurance:

✓ Buildings and Permanent Fixtures
✓ Business Inventory
✓ Furniture and Equipment
✓ Personal Property and Property of Others
✓ Outdoor Signs
✓ Fences and Landscaping
✓ Business Interruption Coverage

In general, property insurance provides coverage for a wide variety of events such as a) fire, b) smoke, c) wind and hail, d) vandalism and e) civil disobedience. Policies often list included or excluded coverages. Some parts of coverage, such as earthquake or hail, may have separate deductibles than other parts of coverage.

Property and Casualty Insurance

Property and casualty insurance refers to the various lines of insurance designed to protect businesses from both legal liability and property damage. While commercial property and casualty is similar to homeowners insurance in many ways, there are more details and consideration for potential risks associated with the commercial side.

Property Insurance Rates and Types of Coverage

Commercial property insurance rates and premiums are typically developed by multiplying the value of the building or contents by a factor associated with the level of risk. Factors that affect property insurance rates include the nature of the business, the location of the property, distance from nearest fire station and other public services, fire and theft alarms and also how the building is constructed. Properties with higher risk of damage or claims will have higher rates per $1000 of coverage than lower risk properties.

Consider combining general liability insurance and property insurance into one single policy to maximize savings with additional credits and discounts.
Learn more about a Business Owners Policy and a Commercial Insurance Package.

Actual cash value coverage is generally based on the value given to the property as listed on the policy. An an example, insuring a piece of equipment for exactly $10,000. Replacement cost coverage will pay the cost of replacing property regardless of depreciation or appreciation associated with the property (only up to the limits listed in the policy). Extended replacement cost coverage will pay over the limits of coverage in the event construction costs have increased. This typically applies to an additional 25 percent in excess over the limits.

How Much Property Insurance Do I Need?

The amount of property insurance you need greatly depends on your tolerance for risk and what you are willing to pay for coverage. It’s definitely not a good idea to over-insure your property as you will be overspending for insurance with little to no benefit in the event of a loss. The entire premise of insurance is to make you whole again after a claim or loss. Additionally, banks and lease agreements often stipulate minimal amounts of property coverage required for businesses who have loans or lease buildings.

The final thing to consider is your property insurance deductible. Be careful about setting your deductible too low when purchasing property insurance. Lower deductibles not only increase the cost of your business property insurance, it’s often not worth turning in a claim on a small loss. Many companies with $500 deductibles don’t turn in claims for $750 losses. Why? Because it’s not worth the extra time and energy to file the claim and wait for a settlement. Additionally, many business owners don’t want the claim on the business loss reports because it may cause their rates to go up at renewal.

Start a Commercial Property Quote

It’s easy to get property insurance quotes for your business. Contact one of our commercial insurance Specialists today at 800-900-8657, have a Specialist call you, or start your property quote online. At General Liability Shop.com, we’ve got your property covered. Get quotes from more than 35 insurance companies from a national agency specializing in commercial insurance coverage.