Commercial Property Insurance

All businesses need some form of commercial property insurance, some people mistakenly believe that it covers a businesses premises alone when in fact it not only covers the building itself but the contents within the building and depending on the policy, any movable property belonging to that business.

Along with commercial liability insurance, property insurance for business is a vital part of running a business and a wise investment.  Because of the nature of commercial insurance it is also important that you, the business owner investigate all the different options that are available to you as well as knowing about the different risks that your company may be exposed to, to ensure that you get the best possible coverage for your business or enterprise.

There are many reasons why every business should have commercial property insurance, it provides cover against many of the common risks that a business faces such as fire and theft as well as providing cover for the building that houses the business it also covers the contents of the building.  Internal fixtures, expensive equipment and machinery are also covered against damages.  The two most common risks a business faces are fire damage and crime, both theft and vandalism.

A business without insurance is put at a serious risk of incurring major financial losses, fire damage for example can not only destroy the property and put the business out of operation for a long period of time, but without insurance the demolition or rebuild costs are extremely expensive and for the uninsured may not even be possible.

There are a number of different options available for purchasing commercial property insurance.  The main type of cover is general property insurance but there are many smaller, sub types of insurance which fall under property cover also.  Crime insurance, fidelity bonds, business interruption and glass insurance are just some of these more specific plans.  Depending on the insurer you choose and the policy, some of these may be included in your property insurance already but it is wise to investigate what is included and what is not to make sure that your business is fully covered.

Under commercial property insurance you can find many smaller policies that may or may not be included in you policy, depending on the coverage you take out.  Some of these are optional and some are essential, depending on the nature of the business you run.

Policies such as debris removal, business interruption insurance and builders risk are all valuable types of cover that will help with the costs associated with rebuilding or demolition after damages have occurred.  Business interruption insurance can cover a business that is forced out of operation for a length of time and helps to cover the losses that occur from being unable to operate, loss of profits can be significant and having this type of insurance can offset this financial problem. 

Ordinance and law cover is used to help cover the costs of demolition and rebuilding when a property has been damaged by fires or floods etc.  Crime insurance provides cover against theft of property, money and equipment and so on.

Another type of commercial property insurance which is useful to anyone who transports property frequently is inland marine insurance, while this may seem like a policy that would not be required by many businesses, in fact, unlike its name suggests, this policy covers land transportation only and  provides cover to any movable business property while in transit on land.