(888) 900 0205Business Property Insurance
Commercial property insurance provides coverage for businesses against damage or loss to their physical assets. This type of insurance typically covers buildings, equipment, inventory, and other property from risks such as fire, theft, vandalism, and natural disasters. It can also include coverage for loss of income if the property is unusable due to a covered event.
Building Coverage
- Covers the physical structure of your business premises.
- May include improvements made to the building.
- Ensure coverage matches the replacement cost, not just the current market value.
Important Considerations
- Replacement Cost vs. Actual Cash Value: You can choose whether you want to insure the building for its replacement cost (the cost to rebuild the structure as new) or actual cash value (the cost to replace, minus depreciation). Replacement cost coverage is generally more expensive but provides better protection.
- If your business is in a leased space, tenant improvements (modifications you've made to the building to suit your business needs) should be covered.
Contents Coverage - BPP
- Covers the contents inside your building, such as furniture, inventory, equipment, and supplies.
- You can opt for "Replacement Cost" coverage (pays for new items) or "Actual Cash Value" (which factors in depreciation).
Important Considerations:
- Inventory Coverage: Businesses with significant stock, such as retail stores or warehouses, need specific coverage for inventory. You can choose a policy that covers the actual cash value (depreciated value) or replacement cost (cost to replace with new items).
- Seasonal Variations: Some policies offer "peak season" coverage, which increases the amount of coverage during times when inventory levels are higher than usual, such as holidays for retail businesses.
- Off-Premises Coverage: If you frequently move property between locations, you might need coverage for business property in transit.
Business Interruption Insurance
- Provides financial assistance if your business operations are halted due to property damage.
- Helps cover lost revenue, temporary relocation costs, and employee wages.
- Essential for businesses heavily reliant on a specific location or equipment.
Important Considerations:
- Ensure that the policy covers "extra expenses" (such as temporary locations or the cost of hiring temporary staff) in addition to lost income.
- Coverage is usually limited to a certain period, called the "period of restoration", so make sure the duration matches your potential recovery timeline.
Equipment Breakdown Coverage
- Covers the repair or replacement of essential business equipment that may break down unexpectedly.
- Useful for businesses that rely heavily on machinery or technology.
Important Considerations:
- This is different from standard wear and tear or maintenance issues, which are typically excluded.
- This coverage can also apply to the spoilage of goods, like refrigerated items that spoil due to equipment failure.
Inventory Coverage
- Protects your stock or inventory against damage or loss.
- This is especially important for retail businesses or manufacturers that carry large amounts of stock.
Important Considerations:
- If you hold seasonal inventory, ensure you have a policy that allows for seasonal fluctuations in stock levels.
- Some policies will offer valued inventory coverage, which sets an agreed value on inventory in case of a loss.