Every business should carry property coverage and commercial property insurance to protect against damage to the facility. There is a broad range of options available when shopping for commercial property coverage, and you should speak with a professional to help you pick out the right protection for your company. Here are some of the most important areas to consider.
Building Protections
The most obvious benefit of a commercial property insurance policy is the financial protection it can offer to your structures. In addition to protecting your own building, you may also be able to purchase policies that provide coverage for damages to other buildings around yours as well.
Property Protections
Although you need a reliable building where you can show up and work, it’s hard to work when you don’t have all your day-to-day materials because they were damaged. From furnishings to items such as your computer system, property protections allow you to replace your damaged goods to get back on your feet as quickly as possible.
Lost-Income Coverages
One of the easiest areas to overlook when setting up your commercial property insurance plan is the money and productivity lost when your facility is out of commission. Protections for loss of business income mean that you can keep money flowing in even when you are not able to conduct business as usual. This means you maintain the ability to pay your staff in order to not risk losing them, and also that you can meet any financial obligations you have with your creditors.
If you are renting the unit out to another company, that doesn’t mean you can’t still protect your interests against possible lost revenue. Coverage for loss of rental income grants you a payout if your building is damaged such that your tenants are forced to seek a new location, costing you their rent payments.
Tenant Protections
If you don’t own property but have still put work into it, you may need to insure your additions on your own. Tenant improvements and betterments insurance offer you financial protection for any improvements you have made to the facility you are renting. If you do not purchase any coverage after adding to or otherwise improving your facility, and the changes are damaged, you may not be covered for the costs of replacing what you have lost.
Liability Insurance
Damage to your property isn’t the only thing you need to worry about when purchasing your commercial property insurance. If employees or clients are hurt on your property, you may be found legally responsible for their costs, including damages and lost income. With liability insurance, you get protection in the event of a claim being filed against your business.
Natural Disaster Coverage
One way that commercial property insurance is very much like residential insurance is that some policyholders misunderstand their protection in the event of a natural disaster. Under most policies, events such as flooding, hurricanes or other natural disasters will require a separate policy. If you live in an area prone to a certain natural risk, you should consider getting supplemental insurance in addition to your commercial property coverage.
