Why is commercial property insurance important?

When you’re a business owner you usually have a ton of physical assets to protect. Business property insurance also known as commercial property insurance covers the building your company is located in and the contents of the business such as furniture, clothing, computers, important documents, electronics, inventory, machinery, tools and more. Because of all the vulnerabilities of being a business owner, commercial property insurance is incredible vital.

Unexpected accidents can always happen. Risks such as fire, theft, vandalism, storms, and more can happen at anytime. Commercial property insurance will help to support you and give financial assistance if you need help to rebuild or repair your business. 

How does commercial property insurance coverage work

A good business property insurance policy will cover you for a variety of issues you ,may run into as a business owner. Generally classified by the type of event leading to a loss, and by what things are insured.

A standard business property insurance policy will cover your losses that are caused by covered perils such as fires and explosions, vandalism and theft, and other forms of damages. Although, most standard commercial property insurance policies will not cover all risks. If you’[re in need of additional coverage or endorsements, it will more than likely be if you need earthquake insurance or flood insurance. 

The common items your commercial property insurance policy will cover are the building you do business out of, your office items such as computers, inventory, computers, clothing and the items outside that may be important to the business.

Take inventory of your premisses 

When you’re getting ready to meet with one of the wonderful agents at Eugene C Yates Insurance Agency, it helps if you take careful inventory of your personal business. This process will help you to determine what the business is worth and how mush coverage you’ll need at the end of the day. Knowing your replacement value is important when knowing what you need.

The property you might insure could include:

• The building
• All office equipment, including computers, phone systems and furniture and more
• Accounting records and important company documents
• Manufacturing or processing equipment
• Inventory kept in stock
• Fence and landscaping
• Signs and satellite dishes

How would you like to cover your company assets? 

Commercial property insurance or business property insurance will help to pay for losses based on the replacement cost of assets or the actual cash value of them.

• Replacement cost (RC) is the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality, without deducting any amount for depreciation.
• Actual cash value (ACV) is the cost to replace it with new property of similar style and quality, minus depreciation.

For the most part the commercial property insurance policies that are actual cash value policies are lower in rate than replacement cost policies due to the limits only including depreciated value. One of our amazing insurance agents at Eugene C Yates insurance Agency can help you realize the amount you actually need to insure. They can also help you have your commercial property evaluated. 

Commercial property insurance brokers

Most business owners will want to carry commercial property insurance due the amount of ways it can cover your company. Business property insurance or commercial property insurance will cover a very wide range of items such as inventory, computers, furniture, equipment, tools and more. The losses you may encounter fire, break-in, vandalism, wind and other natural or manmade disasters are examples of what is typically covered.

Sometimes a lot of basic commercial property insurance policies is all a business owner will need., although the types of coverage can vary between different commercial insurance companies.

• Insuring Buildings: Do you own a commercial building? If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Give us a call today, and we’ll help you determine if you have enough commercial property insurance for your business.

• Flood Insurance: Most commercial property policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from resulting damage. Check your current property insurance policy to be sure you are covered. If you’re unsure, just ask us to review your insurance policy, and we’ll help you find the best solution.

• Business Personal Property Coverage: Business personal property insurance covers property at a specified location such as furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an inland marine policy (equipment or installation floater).

• Business Income (Business Interruption Coverage): This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed. It applies while the premises are being restored because of damage from an event such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. We strongly recommend that all businesses acquire this coverage.

• Electronic Data Processing (EDP) Insurance: This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.

Commercial Property Insurance Quote

If you or your business has additional questions or you would like a free business property insurance quote, please give one of our wonderful agents a call at (916) 313 – 6100