What is property insurance for business? Business property insurance or commercial property insurance is designed to help pay to replace or repair lost, stolen and damaged property of the business that is insured. It will help to cover items such as the physical structure or location and the assets inside and outside of the building.
Does your small business need commercial property insurance?
Regardless of whether you own, rent or lease the building your company is in, business property insurance can help to cover you from financial ruin. Business property insurance, commercial property insurance and business hazard insurance are the same commercial insurance product.
There are some situations where you will be required by a landlord to carry commercial property insurance and mortgage lenders will also require that you have coverage before they will fund your loan.
Even if it is not a requirement it’s a good idea to have business property insurance coverage. It can help to protect your business assets, inventory, furniture and more.
How does commercial property insurance protect your business?
Business property insurance will cover the structure of the building your company is in and the contents within the building. It can even cover some of your business assets outside of your business. It will help to repair or replace damaged, lost or stolen company property.
The assets your business owns are not only expensive they typically are the business. Commercial property insurance will help you to afford repairs or replacement of items that get damaged or stolen.
Businesses that purchase a policy typically:
- Own or rent a building, store, or office
- Own or rent expensive equipment or tools
- Have products or inventory
- Depend on other valuable business assets
What kinds of commercial property insurance do I need?
Each industry is different and will come with different risks to worry about. Some companies may need more than just a standard commercial property insurance policy. You can always purchase expanded coverage if you want full coverage.
A standard commercial property insurance policy will cover you for named perils. Which can include burglaries, fires and smoke, theft, vandalism and storms. Some of the natural disasters that are not covered may include earthquakes, flooding, and wear and tear.
Usually a commercial property insurance policy will cover the building and what’s inside the building. The policy can also include stored items at the location.
If you are forced to close down while repairs are being made you will want to look into business interruption insurance or what most small businesses do is purchase a business owners policy which will have a combination of commercial property insurance, business interruption insurance and general liability insurance.
Your business property off premises are not covered. If you transport goods you may want to look into inland marine insurance. With this policy you will be covered for equipment, tools, and other business related items as they travel from location to location.
How much does business property insurance cost?
The cost of commercial property insurance can vary. Every industry is different and every commercial property insurance provider has their own guidelines and grading system. Below are a few of the factors that may effect your rate:
- Industry and risks
- Coverage limits
- Location
- Property value
On average commercial property insurance will run you around $75 per month for very basic coverage.
Business Property Insurance Quote
If you would like a custom business property insurance quote, please get in touch with us today by calling 916 313 6100