Commercial Property Insurance

When you think of small business insurance, commercial property insurance may come to mind. Commercial property insurance can cover the value of your business property, equipment, inventory, and assets in case of damage, loss, or destruction. Exactly what is covered by your policy is up to you. There are several coverage options available for commercial property insurance.

You may choose to protect your property against damage resulting from only named perils, such as fire or flood. In this case, the insurance company will pay just for loss or damage incurred due to specific perils mentioned in the policy. In addition, it will pay for your loss of revenue and cost for business interruption due to this peril.

You may also elect to have all-risk, or broad, coverage. This type of policy is much more expensive, but it covers damage or loss for any cause unless it is specifically omitted within the policy terms. In any case, all-risk coverage also pays for lost revenue and interruption of business.

If you select all-risk coverage, you may choose to add a broken-equipment clause to your policy. Many times, the expense of repairing or replacing equipment is the second-highest expense after those related to physical property and buildings or structures. Whether your equipment is damaged by use, maintenance, or a perilous event, it would be covered by your commercial property policy.

All-risk coverage will generally include any loss incurred if your property is burglarized. If someone breaks into your property, not only are the stolen assets covered but also the damage caused by the break-in. An additional option is coverage for payroll and payroll transfers.

Commercial property insurance can cover goods in transit. When goods are in transit, there is a risk of accident or theft, which is why it is important to consider this coverage option.

This type of insurance can also provide coverage for any of your signage. Whether the sign itself is damaged or that sign damages any of your assets in the case of an accident, both repair and replacement expenses would be covered.

Premiums for business property insurance can be higher or lower depending on whether the insured chooses to receive the replacement funds for items lost or the actual cash value (ACV) of those assets. Replacement coverage pays the amount needed to repurchase any items at current market prices. ACV, however, will pay you only the depreciated value of the asset(s).

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