Insuring Against Commercial Property Risks

One of the major expenses a business will face is commercial property insurance, but this is an investment that is well worth the cost. For manufacturers, service-oriented businesses or retailers, there is a lot tied up in the equipment and machinery needed to make the business run. These assets need to have insurance coverage against theft, fire and natural disasters just like the physical building housing the business.

Property Coverage vs Commercial Property

Property insurance is the policy that covers the physical structure a consumer owns. This is generally called liability insurance, and it reimburses a renter or owner for the replacement or repair of a building and the contents contained within in the event of theft, fire and other covered incidents. It can also provide financial assistance for medical costs associated with third-party injuries on the property.

Commercial property coverage is similar, but the coverage is limited to thy physical assets contained on the property and the building itself. Each policy has a limit for payouts, though the size of the value of the building and all the assets are taken into account during the underwriting stage for the policy. Properties located in geographic areas more prone to inclement weather or natural disasters tend to have higher than average rates.

Consider the Costs

While expensive, it is just as risky to not carry enough coverage as it is to avoid coverage altogether. Consult with an agent to find out how to bundle this additional protection and save money.