How Much is Commercial Property Insurance?

The cost of commercial property insurance will vary from business to business, from commercial insurance carrier to commercial insurance carrier, and from industry to industry. There are many factors that will help the commercial insurance company calculate your rate on commercial property insurance.

The amount you end up paying for commercial property insurance will depend on your business or industry more specially. Businesses that take on more risk on a daily basis usually have higher rates. Every company is different and will come with its own set of risks.

Some small businesses will pay as little as $600 per year while a major corporation may pay upwards of $600,000 per year. The average cost of commercial property insurance is between $1,000 to $4,000 per million in coverage. The majority of businesses will pay just a little less than a thousand per year. 

What Effects Commercial Property Insurance Rates?

The are many variables that will effect the price you pay for commercial property insurance. Below is a list of some of the more common factors that will influence the cost of commercial property insurance:

Occupancy:

Who will be occupying the business during the hours it is open? Will there be a lot of foot traffic? Does the business have a lot of employees? Usually more people comes with more risk and typically this will lead to higher rates. 

Risk:

Is the industry the business is in come with more risk? A legal business usually has less risk than a restaurant. If you have a lot of expensive equipment in your business it will cost you more on your commercial property insurance. 

Construction:

The structure of the building and the condition it’s in will play a role in determining your rate on commercial property insurance. Upgraded HVAC systems and fire retardant materials can lower the cost of commercial property insurance. 

Exposure:

If the company is located in an area with a high number of claims more than likely they will be looking at higher rates. If the are has a high crime rate you will encounter a high rate on commercial property insurance. 

Protection:

Fire sprinkler systems and burglar alarms can help to reduce commercial property insurance cost. Being close to a fire hydrant or fire station can also help to reduce rates.

What Does Commercial Property Insurance Cover?

A standard commercial property insurance policy will cover the structure of the building, outside property and what’s inside it. This can include the building, equipment, tools, inventory, fencing, signage, landscaping, and more.

The 3 types of commercial property insurance:

Basic form policy:

This commercial property insurance policy will cover some natural disasters, fire and smoke, theft and vandalism. Most small businesses choose this policy.

Broad form policy:

This form of commercial property insurance covers everything the basic policy will but has added protection for falling objects, snow and ice, water damage, collapsing structures and more. 

Special form policy:

This form of commercial property insurance covers everything that is not specifically excluded. 

What is Not covered Under a Commercial Property Insurance Policy?

Commercial property insurance will cover you for multiple risks and natural disasters but there are a few things that may be excluded from your policy you should know about. A typical commercial property insurance policy will not cover vehicles, employee wages, personal assets, and these issues as well:

War:

The majority of commercial property insurance policies will not cover you for war. This can include terrorist attacks, missile damage, and the war related damage.

Earthquakes:

Most commercial property insurance policies will exclude earthquakes. If you feel as if this may be a risk you could run into you will want to ask your agent about earthquake insurance. 

Flooding:

Flooding from heavy rainfall is usually excluded from a standard commercial property insurance policy. To get coverage for flooding you will want to ask your agent about flood insurance. 

Commercial Property Insurance Quote

The best way to know you’re getting the best deal on your commercial property insurance policy is to speak with an agent like the ones at Eugene C Yates Insurance Agency. Our agents have access to the very best commercial property insurance carriers and firsthand knowledge of the absolute best commercial property insurance discounts. This makes it very easy for them to get you the best rate on the best coverage available for your situation. 

If you would like a custom commercial property insurance quote, please give us a call today at 916 313 6100