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You probably have some kind of personal property protection, whether it is renter’s insurance covering the items inside your condo, or property insurance that was required when you took out your mortgage. Commercial property insurance coverage is just as important to protect your business’ building, its contents, and the exterior fixtures.
You should have commercial property insurance if your business owns or leases any structures, lots, or valuable assets. Even if you operate your business out of your home, you still need commercial property insurance, because many homeowner’s insurance policies don’t cover all your business assets.
Here are a few reasons why you might need commercial property insurance:
Provides protection from the devastating effects of property damage, repair costs, or equipment loss.
If the incident prevents the business from operating, it could provide financial stability to replace lost income.
You might be required to show commercial liability insurance coverage before purchasing a workspace. For example, your mortgage lender requires proof of commercial property insurance for financing.
To save money versus increasing limits on an underlying policy.
The additional coverage amount might be a requirement for a lease or contract.
Commercial property insurance covers a wide range of risks your business faces. Here are just a few examples:
The property your restaurant owns could be destroyed in a fire along with the business equipment contained in the building.
The front windows of your boutique clothing store could be smashed by vandals who also could steal your inventory and valuable documents and laptops.
The flood from a burst pipe could destroy your state-of-the-art equipment in the home garage you converted to a workspace for your side-hustle carpentry business.
The front windows of your boutique clothing store could be smashed by vandals who also could steal your inventory and valuable documents and laptops.
The flood from a burst pipe could destroy your state-of-the-art equipment in the home garage you converted to a workspace for your side-hustle carpentry business.
Commercial property insurance can be purchased as a stand-alone policy or as part of a business owner's policy (BOP). The average annual cost of a commercial insurance policy can start at around $800 for a small business, but coverage costs will vary. Here are a few factors that can influence the price of a commercial property policy for your business:
Here are just a few other common examples of risks, coverages, and why you may need them to protect your business:
A business owner’s policy provides comprehensive coverage by bundling general liability insurance, commercial property insurance, and business income interruption insurance into a single policy. This makes the insurance process easier and more affordable.
A commercial auto policy covers vehicles used for business purposes, including cars, trucks, vans, and other vehicles owned or leased by your business.
A general liability policy covers your business from financial losses and/or legal expenses resulting from any injury experienced by a customer or damage caused to your customer’s property.
A cyber insurance policy protects you against the consequences of a cyber incident, such as data breaches, network security failures, cyber extortion (ex. ransomware) and other cyber attacks.
Workers’ compensation insurance protects employers and employees, covering financial needs in case of any workplace illness or injury. This insurance is required by law in most states.
A professional liability (E&O) policy covers the risks of professional services providers. If you advise or offer professional services (ex., accountant, consultant, lawyer, engineer, doctor, etc.) and you or your employee make a mistake that causes a loss for your customer, you are liable for that mistake and can be sued.
By now you understand how important it is to be properly insured. What’s next? Call (380) 225-5242 to connect with an experienced insurance agent who understands the nuances of your business and industry.