Commercial Property Insurance

When a theft, a fire or any other type of disaster strikes your business, you need help that you can only get through quality commercial property insurance. This type of insurance covers the property owned or leased by your business, which may include real property and business personal property such as furniture, inventory, fixtures and equipment. You may also be able to obtain coverage for a number of other things, such as media, computers and records. If your operations are suspended due to a covered loss, you may also be able to receive replacement for the lost income.

You have put a great deal of hard work into building your company and you have invested a lot of money in your inventory, equipment and facilities. It is essential that you protect that investment and hard work with a reliable commercial property insurance policy.

Real property refers to the land and buildings that are associated with your business. This includes the land and all of the things that are attached to that land. The building materials, such as wood or steel, are not considered to be real property on their own. However, when those materials are used to construct an office building, warehouse or other structure that you need to operate your business on your land, those structures become real property and require the necessary insurance coverage.

Plants and trees that grow naturally on your land are also considered to be real property. It is important to note that plants, such as vegetables and grains that require regular human labor and cultivation are not always considered real property. 

As a business owner, you may be interested in a type of coverage known as business personal property. This type of coverage will protect the contents of your business that belong to you and used in the name of your business up to the declared limits of your policy.

The covered items under this type of insurance include the contents of your buildings, such as equipment, supplies, inventory, furniture and fixtures that are related to your business. The coverage that you purchase can be based on the actual value of the property, which is the cost of replacement less depreciation. It may also be the current cost of replacement or another agreed amount, such as that obtained through an appraisal.

Inland marine insurance is typically world wide coverage and provides protection for property wherever it is located. Many business owners will dismiss this type of insurance because of the name, believing it is unnecessary if their company does not own a marine craft or transport their goods over waterways. However, even though inland marine insurance was first designed to protect the transportation of goods over water, the term now refers to the protections of goods in transit on dry land as well. This insurance type also covers other people's property while it is located on your premises or while it is in transit to or from your premises.

Depending on the type of business that you operate, inland marine insurance could be a key factor in protecting your business. If your company transports property of any kind or has buildings that are under construction, you may want to include inland marine insurance in your commercial property insurance policy.
Think about the inventory and equipment that is transported by you and your employees on a regular basis in order to keep your business up and running. It may range from building plans and computer data to construction equipment and tools.

Your commercial property insurance policy alone may not be sufficient coverage to protect the items that are fundamental to your operations. Some policies only provide limited coverage within a certain distance from your business address, which will not help you if your products or equipment sustains damage fifteen miles from your primary business location.

Builders risk or course of construction insurance covers the damage or loss of a building while it is under construction. This insurance is typically written for a specific amount on a building and will only apply while the building is being constructed.

Generally, builders risk/course of construction coverage includes protection against fire, malicious mischief and vandalism. The coverage may also apply to items up to a certain value percentage while in transit to the construction site or stored at the construction site.

Without proper commercial property insurance, your business could face serious financial hardship when disaster strikes. The cost to rebuild or replace your buildings and equipment may be significantly higher than you may think. In addition, a shutdown of operations, even for the shortest time, can cause your company quite the struggle.