We know that the process of buying insurance can seem daunting. There are many policies out there to cover a variety of risks and liabilities. The kind of insurance you choose for your business will depend on the daily exposures you and your employees face. However, there are a few policies that pretty much every business should consider, regardless of your industry. Commercial property insurance is one of the most important, foundational policies for businesses. Here we cover the basics of buying property insurance.
What is Commercial Property Insurance?
Commercial property insurance protects your company’s property and on-site physical assets in the event of damage. This type of insurance can help cover financial losses after certain accidents, weather events, or other hazards.
Who Needs Property Insurance?
Any businesses with any physical assets of value should have commercial property insurance. An asset might not necessarily be a building, but anything that would be costly to replace such as computer equipment. Whether you own, lease, or rent a physical property space, you still need property insurance. This also goes from home-based businesses, as homeowners’ insurance won’t cover business-related losses.
What Does Commercial Property Insurance Cover?
A commercial property insurance policy typically protects physical assets such as the building itself; assets including equipment, furniture, computers, and inventory; and employees’ personal belongings. Basic property insurance will cover losses caused by fires or explosions, theft, vandalism and damage from vehicles. Additional coverage referred to as “endorsements” can be added to provide additional protection for things such as earthquakes and broken glass.
What Does Commercial Property Insurance Exclude?
This policy doesn’t cover the following:
- Burglary: Not all policies will cover loss due to theft, so you may need commercial crime insurance if you are at high risk for burglary.
- Flood and earthquake damage: If your business operates in an area where these disasters are a common occurrence, consider obtaining these additional policies.
- Cybercrime and computer fraud: For this, you’ll need cybersecurity insurance.
- Damage to vehicles: Commercial auto insurance protects vehicles you or your employees drive for work purposes.
- Income loss: If your business closes due to damage, it could lose significant income. Business income insurance will cover this and help you recover from financial loss.
CTG: Personalized Business Insurance Solutions
The right business insurance can make or break your business. CTG offers personalized insurance solutions tailored to your unique needs, risk level, and budget. We make the insurance buying process simple and accessible to all. Get started by scheduling a phone call, virtual, or in-person meeting with one of our experienced insurance advisors.