Commercial Property Insurance is an important part of any commercial insurance program.   This coverage provides protection for your buildings, office contents, equipment, product, and your clients personal property. It does not matter what product or service you provide, having Commercial Property Insurance is vital to keep your business protected from any unexpected loss.

Some items to consider when purchasing Commercial Property Insurance

Building Coverage

In the event of a loss you need to protect the continuation of your business. It is very important that you have replacement cost coverage on your building. If a claim occurs, this coverage will pay you the actual damage amount minus your deductible without depreciation. Another important feature to pay attention to is your co-insurance. Co-insurance is your responsibility to pay in the event of a claim, in addition to your deductible. A 90% co-insurance option is what is recommended. Most agents will automatically select an 80% co-insurance option for you. However, in this scenario, you will be responsible for 20% of the claim in addition to your deductible. The lesson here is to make sure you have replacement cost coverage, and at least a 90% co-insurance option when insuring your building.

Business Contents / Equipment Coverage

In the event of a loss, you need to make sure you have adequate coverage for the things that help keep your business going every day. We suggest that you maintain accurate records on the value of your contents, and update your policy annually.

Stock / Inventory Coverage

This is essential to a business that relies on materials and or product as a source of income for your business. If you have a claim you need to make sure that these items can be replaced without any additional financial hardship to your or your business. Also, if your business has seasonal increases with these items you need to make sure that you have enough coverage for these periods.

Loss of Business Income Coverage

This coverage will help keep your business going in the event of a claim disrupting your business income. We suggest that you work with your accountant to determine the amount of income replacement you would need if you were shut down for weeks, or months. Do not rely on your insurance agent to come up with this figure. If you are underinsured you could suffer financial hardship, or end up out of business. This is one of the most overlooked coverage of all commercial insurance.

Selecting The Right Commercial Property Coverage

The most important thing is understanding how an insured value is reached for your building and contents. Make sure you understand how your insurance agent is determining the values, and that you are part of the process. Confirm that you have replacement coverage on your building and contents, and that your co-insurance limit is not lower than 90%. Following these steps will insure that when a loss occurs, your business will not suffer.