What is commercial property insurance

Commercial property insurance definition

Commercial property insurance also referred to as business property insurance is designed to protect the structure your business is in and physical assets from explosions, burst pipes, fire and smoke, theft, vandalism, storms and more. Disasters such as earthquakes and flooding are typically not covered under a standard commercial property insurance policy. Although, you can add those risks to your regular commercial property insurance policy by purchasing earthquake insurance or flood insurance.

Cost of commercial property insurance

The cost of commercial property insurance will be different for every company. There isn’t a one policy fits all plan. There are many factors that will help the commercial property insurance provider determine your commercial property insurance rate. From the industry you’re in to the location where the building is located. The value of your assets to the amount of employees you have. All of these and more will play a role in what rate you pay.

More factors that may help to determine your commercial property insurance rate could include:

Location / Zip code:

The location the building is will play a large role in what rate you end up with. If the area is prone to storms or other natural disasters more than likely you will get a higher rate. If the area has a high crime rate or a higher than normal claims rate you’re probably going to end up with a higher premium on your commercial property insurance. 

Building construction:

Is the structure of the building made from disaster proof materials or do you have new electrical or plumbing? If the building is made out of materials that have disaster prevention there’s a good chance you’ll receive a lower rate. Newer building usually will come with lower rates as well. Although if it will be very expensive to build from ground up if the worst were to happen you would more than likely be looking at higher rates. 

Occupancy:

Is the industry you’re in come with added risk? Usually an attorneys office will have less risk than a restaurant. With all insurance less risk means lower premiums. The use of the building will also be a factor. If you have multiple tenants and one deals with hazardous materials your rate more than likely will be higher. 

Fire & theft protection:

Is the nearest fire hydrant or fire station close to your building? Have you installed fire sprinklers or other safety devices? Do you have a security system? If you are more protected than a business with similar traits you will probably earn a discount on the cost of commercial property insurance. 

What does commercial property insurance cover

A standard commercial property insurance policy will cover the structure of the building your company is in, your assets within the building, and most of your property outside of the building. Some of the items that may be covered by your commercial property insurance policy may be:

• Computers
• Furniture and equipment
• Exterior signs
• Fence and landscaping
• Important documents
• Inventory
• Others’ property

Property to Consider for Commercial Property Insurance

You may want to consider a few items on your property when it comes to commercial property insurance such as:

• The structure of the building your company is in regardless of whether it’s rented, owned or leased
• Your equipment, tools, computers, office furniture, phone systems, and other assets inside the building
• All essential documents, records, paperwork that are important to your company
• Processing equipment
• Inventory and stock
• Signage
• Fences
• Landscaping

Commercial Property Insurance Quote

The best way to get a great commercial property insurance quote is to go through a long standing independent insurance agency such as Eugene C Yates Insurance Agency. At Eugene C Yates the agents have access to the very best commercial property insurance providers and firsthand knowledge of the best commercial property insurance discounts available. This makes it very easy for them to get you the best rate on the best coverage.

If you would like a free custom commercial property insurance quote, please do not hesitate to call us today at 916 313 6100.