In our ever-changing job market, business owners may be unsure about which items they need to cover under a commercial property insurance policy. At Southpoint Insurance, our team of experts can help you determine if you need to protect company property in your employees’ homes, what your lease requires you to cover, and what limits are right for your needs.
What Does Commercial Property Insurance Cover?
The type of business you own and the location of your company property help determine how your assets should be covered under your commercial property insurance policy. You might own thousands of dollars worth of expensive computer equipment, a fancy LED sign, or possibly even a million-dollar office building. These are business assets that would be costly to replace in the event of a natural disaster.
In addition, your office might sit on a fault line or in an area that gets hit by frequent hail storms during the summer. These hazards increase the chance of costly damage to your property. Consequently, your property’s geographic location helps determine the amount, type, and cost of coverage you will need to repair or replace damaged assets. Regardless of size or property owned, you may be required to purchase commercial property insurance by a landlord or mortgage lender to protect their interests in the property you own or rent.
Types of Property Covered
Commercial property insurance covers various types of property, including buildings, computers, office equipment, furniture, fixtures, signs, fences, documents, and property of others in your custody.
Commercial property policies also cover loss of income that results from suspended business operations. Even if a piece of equipment is not that expensive to replace, the loss of business function when equipment is damaged or stolen can be costly. Commercial property insurance ensures that the unexpected loss of profits will not cause a devastating blow to large or small businesses.
How Coverage Is Applied
When property is damaged or stolen, a property policy will cover losses up to the policy limit. Understanding how your property policy will pay for losses and knowing what losses are covered are vital steps in ensuring you are adequately covered.
Property policies often pay for claims caused by anything not explicitly excluded in the policy, so it is important to know what exclusions exist. The amount of a claim payout can also vary. Your policy might pay the actual amount needed to replace property or reduce your claim payout based on depreciation of property value.
What Isn’t Covered By Commercial Property Insurance?
In the event of a loss, business owners should not wait until they file a claim to learn if their commercial property insurance will cover the loss. There are many exclusions in a property coverage that can be supplemented by combining coverages in a package policy or purchasing a supplemental policy.
For example, if your office sits in a flood zone, you may have to purchase an additional flood policy to be covered in the event of a flood-related loss. If you own a company vehicle that is registered to drive, property damage to the vehicle would only be covered under your automobile policy. Automobile coverage can be added to a commercial package policy, which includes general liability and property coverage, to provide comprehensive coverage for your business.
Trust Us To Protect Your Property
Our team of experts can help identify your unique risks and coverage needs. Contact us now to learn more.
Deciding What Commercial Property Insurance Policy Is Right For You
In a world where wildfires, tornadoes, floods, and earthquakes can strike at any moment, business owners need commercial property insurance to protect their assets. Southpoint Insurance understands the importance of making sure all of your expensive property is sufficiently covered. Our team has decades of experience in the property insurance marketplace, and we can quickly identify which carriers will be able to provide the right coverage for you. In addition to expertise, we have long-lasting relationships with numerous carrier partners and can shop around to find the best coverage for you.