Commercial property insurance can be defined as an insurance cover that caters for the losses that your business suffers from as a result of damages caused by fire, storms, theft, plumbing disasters, and other forms of physical destruction. This covers protects a commercial property along with the contents in it.
If you own a commercial property that houses a business or several businesses, it’s vital that you take up a commercial property cover just in case the worst happens.
With that basic definition in mind, here are some few things you need to know about buying insurance for your commercial property:
- Know The Different Types Of Commercial Insurance Covers
Any business you set up is susceptible to different types of risks. As such, there are different types of commercial insurance covers that cater to each of these risks.
The first type is general commercial liability insurance that covers a business for property damage and personal injury that occurs within the business premise.
The second is the business interruption insurance that covers loss of income for a business owing to a disaster-related cause. The third is the worker’s compensation insurance that covers medical costs and lost income for business employees that suffer injuries while at work. The
The fourth is the employment practices liability that covers a business from claims of misconduct filed by workers against the business entity.
Other commercial property insurance types include commercial property policy, professional liability cover, commercial umbrella policy, commercial auto insurance, and cyber liability policy.
- Know What Commercial Insurance Covers
Commercial property insurance in general covers the premise where your business is situated and the contents in it along with other features surrounding your business such as the outdoor signage and the fence.
As such, the commercial insurance policy that you subscribe to covers elements such as furniture, equipment, electronics such as computers, records and documents, and the available inventory stored in the business premise.
The insurance cover caters for damages caused by storms, theft, fires, explosions, and wreckage. It, however, doesn’t cover for damages caused by natural calamities such as floods or earthquakes unless these hazards are specified as covered elements in the policy.
- Know The Cost Of Buying Commercial Property Insurance
The cost of insuring a commercial property is dependent on several factors that vary from one property to the other. The first factor is the location of the property. If it is located in a high-risk area, you will definitely have to pay bigger premiums for it.
The second is the construction of the property which entails the kind of material used to build the structure, the kind of plumbing done on it, the ventilation system it has, and the size of the property. If fire-proof materials were used in the construction, they can lower the premium rates paid.
The third is the kind of business being conducted in the property. If you or the clients leasing your commercial property are running a business that’s in an industry with high-risk products, you’ll have to pay higher premiums. The traffic also, in terms of people walking into the property and working there also determines the premium rates that you have to pay.
These few things are just the tip of the iceberg. Here is some more information about commercial property and liability insurance that will be of great help.