Commercial Property Insurance
The Importance of Commercial Property Insurance
Whether you own or lease your building, Commercial Property Insurance is essential to protect your business from potential losses such as fire, theft, or other hazards. Property insurance is often mandated in Lease and Loan obligations. This insurance not only safeguards the physical structure of your business but also covers your business personal property (contents) and other property-related exposures.
What Is Commercial Property Insurance?
Commercial Property Insurance helps protect your owned or rented building and the tools and equipment you use to operate your business. It covers losses from various sources, including:
- Fire
- Burglary
- Theft
- Wind
- Lightning
This insurance helps protect your business’s physical assets, such as:
- Building
- Equipment
- Tools
- Inventory
- Furniture
- Personal property
- Business Income Interuption
Reviewing Your Property Risks
Baldon Group’s experienced staff will conduct an evaluation of your property’s insurance needs to place the appropriate coverage. For example, if you need to rebuild after a covered loss . We will determine whether your Property Insurance program includes Ordinance or Law coverage for that exposure.
Business Interruption
Baldon Group will also assess your property risks, such as what would happen if your business had to close for repairs for an extended period due to a covered loss. Considerations include:
- Adequacy of coverage for income loss and ongoing expenses (critical payroll, utilities, etc.) during business interruption.
- Coverage start time, duration, and cost.
- Coverage for property damage if a power outage forces you to close, resulting in spoiled supplies and goods.
Specific Protections
Commercial Property Insurance can help your business in situations such as:
- Fire damaging or destroying computers.
- Lightning striking a building that has business renters’ insurance coverage.
- Theft of inventory from your building.
Valuation Methods
Insurance companies value commercial property in three ways:
- Actual cash value: Replacement cost minus depreciation.
- Replacement cost value: Cost to replace with something similar or the same.
- Functional Replacement Cost. This meets all zoning codes but will not pay for additional costs of “enhanced materials”.
Bundling Commercial Property Insurance with a Business Owner’s Policy (BOP)
You can get Commercial Property Insurance as a standalone policy, but many small businesses choose a Business Owner’s Policy (BOP) for comprehensive coverage. A BOP includes:
- Commercial Property Insurance
- General Liability Insurance
- Business Income Insurance
Additional Coverages
Enhance your protection with optional coverages such as:
- Commercial auto insurance
- Commercial flood insurance
- Commercial umbrella insurance
- Business interruption insurance
- Inland Marine Insurance
Frequently Asked Questions
Do I Need Commercial Property Insurance?
If you own, rent, or lease commercial property, you should have Commercial Property Insurance. It protects against the costs of fixing or replacing damaged property.
What Is Evidence of Commercial Property Insurance?
Proof of insurance, or a certificate of insurance (COI), demonstrates that you have commercial property coverage. Baldon Group makes it easy to get a COI online.
What Are the Different Types of Commercial Property Insurance?
Different types of commercial property insurance include:
- Commercial auto insurance
- Commercial flood insurance
- Commercial umbrella insurance
- Business interruption insurance
- Inland Marine Insurance
Is Commercial Property Insurance Required?
While not required by law, commercial property insurance is considered essential for most small businesses. Lease and Financial Institutions (Lending) agreements may also require this coverage.
Protect Your Business with Baldon Insurance Group
At Baldon Insurance Group, we understand the importance of protecting your business’s assets. Our comprehensive Commercial Property Insurance ensures your business is safeguarded against various risks, allowing you to focus on growth and success. Contact us today to discuss your risk situation and insurance needs.
