Commercial Property Insurance

In the simplest sense, Commercial Property Insurance Coverage is like that of a homeowners policy. Of course that is an oversimplification, but I will dive deeper. Commercial Property coverage covers a building, contents, and loss of revenue. Much like a homeowners policy covers your house, contents, and expenses to live somewhere else while you are getting your house repaired. Some might argue they do not need commercial property coverage because they lease space and do not own the building. This is not entirely true. Although you may not have to cover repairing or rebuilding the building in the event of a loss, you still have all of your stuff as well as the possibility of losing revenue if you are shut down.

If you own your own building you would insure the building in the event it was destroyed by a covered peril. You would insure it to be able to rebuild it, fix it, get it back to the condition it was in before the loss. If you operate your business in the same building you would also add all of your business contents to the policy to be covered as well. If you own the building as an investment and do not operate anything in it, you will most likely cover the building and LRO (Lessors Risk Only). This means if the building burnt down, you would receive the money to rebuild. However you would not have any coverage for any business contents (unless otherwise stated in the policy). However you would have liability coverage to protect you in the event something happened at your building and you were named in a lawsuit.

If you do not own the building, you would still have commercial property coverage but it would only insure your business contents inside of your office, warehouse, etc. In the event the building burnt down, you have no responsibility to pay for the rebuild of the building, however you would have to replace all of your things.

The third coverage, Business Interruption Insurance, is usually not the most prominent part of the policy, however it can be one of the most important. If the office or warehouse you operate out of suddenly burnt completely to the ground, how would you operate? In many cases you are completely out of business and have no way to make money. This coverage would pay for those losses of revenue (up to a stated amount or actual loss sustained depending on policy). This prevents you from losing money in the event of a loss and being able to not pay your bills.

If you are not sure what you need or would like to see if you can save money, we would love to talk to you. Click here to get a quote, Click here for more information on our website, or call us at 985-892-3101.

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