Commercial Property Insurance
Commercial property insurance offers protection for buildings against unexpected incidents, such as storm, fire, theft, flood, subsidence, and burst water pipes. It is an essential insurance coverage for commercial property owners, which gives them peace of mind even in the wake of unexpected incidents that their property is safe and secure.
This type of insurance helps commercial property owners pay to replace lost or stolen property and repair or replace structures, buildings, and contents damaged due to storm, fires, or other such events. Commercial property owners or businesses can buy this type of insurance even if they rent, lease, or own a building. While the insurance will cover the contents of the building if you are an owner, it won’t cover the on-premises
property if you rent or lease a building. In such a case, you must buy your own
policy to cover the building property, including furniture, machinery, and merchandise.
A single commercial property insurance policy can cover similar businesses operating at multiple locations. The policy will not cover such businesses if they have different risk profiles and functions.
Types of Commercial Property Policies
You may need to buy specialized policies to fully protect your business in some situations, such as flood, crime, or windstorm.
- Basic form of commercial property insurance policies offers coverage for common risks, including windstorms, fire damage, lightning, or civil commotion.
- Broad form of insurance provides coverage for additional perils, besides basic form, such as structural collapse, water damage, sprinkler leakage, and losses caused by snow, ice, or sleet.
- Special form of commercial property insurance policies offer coverage against all losses except some specially excluded by the policy, such as losses from war, flood, terrorism, earth movement, nuclear disaster, and insects.
Commercial property insurance policies offer coverage for both actual cash value and replacement cost or either of the two.