Commercial Property

Every business should have a wide-ranging insurance policy to protect the owners from liability and damage done to their business. One of the most important parts of any business policy is the inclusion of a commercial property insurance contract between the business owner and an insurance provider. Much like any other form of property insurance, such as auto or boat insurance, a commercial property policy covers the building and land owned or rented by the covered company. The contents of the building are also covered under the policy, in case of any damage to the property to cover all losses.

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.