Insurance Spotlight: Commercial Property Insurance 101

Image courtesy of nir_design from Pixabay

As something we can personally attest to, commercial property insurance is something every company needs – whether you own your own building, lease or work from home. At its core, this type of insurance is designed to protect your company’s physical assets from fire, explosions, storms, theft and vandalism, or in our case, a burst pipe. Of note, earthquakes and floods typically aren’t covered by commercial property insurance, unless specifically included to the policy.

How much does commercial property insurance cost?

When determining how much a company should pay for commercial property insurance, the value of a business’ assets, including the building, is the primary factor. Before meeting with your broker to discuss coverage, a company should take an inventory of their physical assets located at their property. This information will help determine what exactly would be the replacement value and the level of coverage the business should get.

Other factors that determine your premium are based on risk, including:

Location: Is the area prone to storms and other natural disasters?

Construction: Is your building constructed with fireproof materials? Does it have new or upgraded electrical wiring, plumbing and HVAC?

Occupancy: What is your industry? A realtor’s office generally carries less risk than a restaurant or repair shop.

Fire and theft protection: How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or sprinkler system? How about a security system?

What’s covered?

  • Commercial property insurance covers your building, everything in it and just outside of it, including:
  • Computers
  • Furniture and equipment
  • Exterior signs
  • Fence and landscaping
  • Important documents
  • Inventory
  • Others’ property

If the unexpected happens, commercial property insurance can ensure that your business can stay open. However, shopping for insurance can be confusing, whether you’re a first-time or veteran business owner. Learn about how commercial property insurance works, what’s covered and what’s not, average costs, and where to obtain coverage. Contact the experts at Roper Insurance today for a complimentary insurance review that’s customized specifically for your business. Rather than offer you only one type of policy, we have access to hundreds of insurance carriers, giving you more options for selecting the right insurance coverage at the right price. Call us today at 303-721-1145 or send us an email at [email protected].

Image courtesy of nir_design from Pixabay