Two Types of Commercial Property Insurance

There are various types of commercial property insurance. In this article we will cover 2 of the most common commercial property insurance types. Which are inland marine insurance & builders risk insurance.

Commercial Property Insurance Types

Below are two of the more common forms of commercial property insurance:

#1 – Inland Marine Insurance:

What is inland marine insurance? Inland marine insurance is a form of commercial insurance that is designed to cover a company’s products, materials, and equipment. It will protect your business as you are transporting these items on land by train or truck. Inland marine is a type of business insurance coverage that will help protect companies that are movable or used for transportation and communication. 

Inland marine insurance can help cover high value items and items that may be excluded from a Business owners Policy (BOP). If your company ships or transports products or equipment, inland marine insurance is something you may want to look into. 

Inland marine insurance can be purchased as an add-on or as a stand alone policy. 

What does inland marine insurance cover?

A standard inland marine insurance policy will help to replace or repair portable company property that may be damaged or destroyed by a covered peril. Some of the perils that are covered in an inland marine policy are:

• Theft
• Fire
• Wind
• Hail
• Water damage

Beyond the perils mentioned above there are some special situations that may also be covered such as:

• Mysterious disappearance: If the cause of loss can not be discovered when property goes missing. 
• Accidental drop: While in transit if an item is dropped and damaged.

What types of property may be covered under an inland marine insurance policy?

• Computer systems and personal computers
• Communication and networking equipment
• Construction/contractor equipment
• Medical and scientific equipment
• Trade show exhibits
• Sales samples
• Photography equipment
• Cargo/items for delivery
• Tools

#2 – Builders Risk Insurance:

What is builders risk insurance? Some may say that a builders risk insurance policy is the backbone to a successful risk management system. Builders risk insurance often referred to as construction insurance is a type of commercial property insurance that is designed to help protect buildings under construction. Having a properly structured builders risk insurance policy can be very important.

A standard builders insurance insurance policy will help to protect construction projects from property damage. Some of the perils that may be covered by a builders risk insurance policy are as follows:

• Fire
• Lightning
• Hail
• Explosions
• Theft
• Vandalism
• Acts of God, like hurricanes

What Businesses Need Builders Risk Insurance?

Businesses or individuals with a vested interest in a construction project should consider builders risk insurance. An example of some of who may want to consider builders risk insurance are as follows:

• Property owner
• General contractor
• Subcontractors
• Lender
• Architects

Types of Property Builders Risk Insurance Covers

Your standard builders risk insurance policy will cover the buildings and structures that are under construction. It may also help to protect the following:

• Materials
• Supplies
• Equipment on site

What Builders Risk Insurance Covers

Builders insurance insurance will protect construction projects from property damage. It may also cover some soft costs and expenses that are not exactly related to the construction project. This is usually the case if the property damage caused a delay. Some of these situations may include:

• Lost sales
• Rental income
• Additional interest on loans
• Real estate taxes

There isn’t one builders risk insurance policy that will fit all projects. Every construction project is unique and because of this most builders risk policies will be different. You can always add extensions to your builders risk insurance policy such as:

• Scaffolding
• Construction forms
• Temporary structures
• Debris removal and disposal in the event of a loss
• Pollutant cleanup

Builders Risk Insurance Exclusions

Like most insurance policies builders risk insurance will not cover every issue you may run into. Disasters such as earthquakes, flooding, and wind are typically excluded from the policies list of perils. Although, you may be able to add extensions to cover your business for these risks. A few examples of what a builders risk policy may not cover are:

• Wear and tear
• Acts of terrorism and war
• Employee theft
• Rust and corrosion
• Mechanical breakdowns
• Damage due to faulty design
• Planning
• Workmanship and materials
• Engineers

Commercial Property Insurance Quote

These are just two of the many forms of commercial property insurance. If you needed more information on the other commercial property insurance types or would like a free custom commercial property insurance quote, please do not hesitate to give us a call at 916 313 6100.