How commercial property insurance works
Commercial property insurance can be expensive, but the policy will be created to fit the unique demands of any business being covered. The first step is to estimate the value of the building and its contents owned by the business to ensure the correct level of coverage is offered and obtained.
Once the assets of the business have been assessed the next step is to explore a series of factors associated with the creation of a commercial property insurance policy. Firstly, the construction of the building itself will be investigated by the insurance provider to assess the risk posed by fire, flooding, and other common causes of insurance claims. An insurer will also explore the location a company is based in for the risk of natural disasters to rate the level of risk presented. Finally, the type of work being done at a location can be a factor in the risk to a property because of the risk of fire, flood, and other damage may be increased by the business being operated.
What is covered?
Commercial property insurance covers the building used for a business and any exterior fixtures, such as a sign or fencing. However, a policy also covers a range of contents including inventory, documents, furniture, and computers. Some business owners may store the property of others within their building and should provide information to their insurer to make sure these contents are covered by their commercial property insurance policy.