The cost of business property insurance isn’t exactly a one policy fits all businesses type of commercial insurance coverage. Every industry is different and will present different risks. In addition every business property insurance company is different and has their own scoring system to determine your premium. On top of that there are many factors that will play a role in the rate you receive on business property insurance such as location (zip code), size of the building, number of employees, and the value of what’s inside the business as well.
If the building your company is in and the contents within the structure are important to your day to day operations, business property insurance is absolutely crucial for the safety of your business.
Business Property Policy Coverage
Business property insurance is a form of commercial insurance that is in place to protect your business property. It will help to protect the structure of the building your company is in, the contents within the building including inventory, equipment, furniture, fencing, signage, and more.
Here are the three types of business property insurance coverage you can choose from:
Basic form:
This form of business property insurance will cover damage that is the result of fire, smoke, vandalism, theft and some natural disasters. The natural disasters covered are wind, storms, hail, lightening, and wildfires.
Broad form:
The broad form policy will cover you for everything within the basic policy but will also protect you against water damage, falling objects, collapsing structures, and snow.
Special form:
The broad form policy will cover you from every other type of peril as long as it has not been excluded by the insurance provider.
Business Property Insurance Exclusions
There are a few perils that may be excluded from your business property insurance policy.
The majority of commercial property insurance policies will exclude personal assets or property that is not used for the business. As well there may be certain items that are covered by other forms of commercial insurance coverage that will not be included.
Some common exclusions for business property insurance may be:
Earthquakes:
Very similar to home insurance, commercial property insurance coverage will not cover you for earthquake damage. If this is a peril you believe your company is vulnerable to you may want to consider earthquake insurance.
War:
Most commercial property insurance policies will not protect you against war.
Specific types of fires:
The fire coverage in your business property insurance policy is very specific. It usually will only cover you for unusual events.
Specific smoke damage:
Most smoke damage is covered in your business property insurance policy. Although, you may not be covered if a near by factor is the cause.
Determining the Cost of Business Property Insurance
Commercial property insurance rates are calculated after taking multiple factors into consideration. The average cost of commercial property insurance coverage is around $1,000 to $3,000. Although, if your industry comes with a lot of risk or you have very expensive equipment you will probably be looking at higher rates.
Some of the factors that could play a part in the premium you pay for business property insurance coverage are as follows:
Location:
The area you do business out of will make a major impact on the rate you pay. If the zip code has a high number of claims you will more than likely pay a higher rate that one that has zero. If the crime rate is high or there is a history of natural disasters this can also cause you to see higher rates.
Industry:
Some industries are more risky than others and due to this they may see increased rates on business property insurance coverage. For example a manufacturing plant will probably see higher rates than a real estate office.
Occupancy:
The number of employees you have and the amount of foot traffic the business receives can make a serious impact on commercial property insurance premiums.
Value of equipment:
If your business has a lot of expensive machinery, inventory or equipment you should expect higher rates than a company with lesser valued items.
Business Property Insurance Quote
As you can see the cost of business property insurance can vary. Which always makes it a good idea to shop around for the best rate for your business. One of the most efficient ways to shop around providers is to speak to an independent commercial property insurance agent such as Eugene C Yates Insurance Agency. Our agents have access to the top commercial property insurance providers and have firsthand knowledge of the best commercial insurance discounts available. This makes it easy for them to get you the best rate on the best coverage.
If you would like a free business property insurance quote, please feel free to reach out to us at 916 313 6100