Flames engulfed the building, and firefighters rushed the scene. You never imagined your business burning to the ground, but it happened.
Luckily, you were smart enough to have Commercial Property Insurance. While the physical building is beyond repair, your business will recover because you had the proper policies in place.
Commercial Property Insurance is coverage designed to protect any commercial property. It offers protection from natural disasters, theft, fire, equipment breakdown, repair costs, and lost revenue.
Imagine a New York businesswoman opens a second-hand clothing store. A week later, she arrives at the building to find the windows smashed and her inventory gone.
The thieves stole more than $100,000 in merchandise. For an entrepreneur just starting out, that is a lot of money. Without Commercial Property Insurance, this woman may struggle to reopen her business due to the lost capital.
Any business that has physical assets that are essential to the revenue stream needs commercial property coverage. While these policies can be a significant expense, they should not be considered optional. Do not leave your company vulnerable.
Commercial Property Insurance covers anything related to the building used for business purposes. The building, equipment, certain landscaping elements, fencing, and more are covered with this policy.
There are three different types of coverage:
How much you pay for Commercial Property Insurance depends on your business. Every business is different with variables that must be considered.
It is important to note that Commercial Property Insurance coverage can be offered in a business owner's policy, too. By combining General Liability Coverage and Commercial Property Insurance, business owners benefit from simplicity and cost savings.
A small business owner may pay as little as $500 per year, while a major corporation could pay $500,000.
The average business pays between $1,000 and $3,000 per million dollars of coverage. Most pay under $1,000 annually, with an average of $742.
For example, a mid-sized landscaping company with 20 to 30 employees may pay between $3,000 and $5,000 a year due to the increased equipment risks and storage space.
There are many variables considered when pricing a Commercial Property Insurance policy, including:
Commercial Property Insurance is extensive but not all-inclusive. The standard policy will not cover commercial vehicles, personal assets, employee wages, and the following:
War: Most policies exclude damages caused to a building by war. This includes terror attacks and damage from missiles or another machine of war.
When talking about insuring commercial buildings, coinsurance refers to the percentage of the value the owner is required to insure.
For example, if you have a building worth $500,000, a policy with an 80% coinsurance clause requires you to have at least $400,000 in coverage.
This value can only be determined at the time of loss, which complicates the situation. If your insured amount is below the coinsurance percentage, you may pay a penalty.
Commercial Property Insurance is essential for any business with physical assets. Don’t risk losing your business when tragedy strikes.
Prices range from $500 to $5,000 and also vary depending on your zipcode: