Commercial Property Insurance

All businesses need insurance coverage, but there are several types of business insurance. Different businesses need different types of coverage. But commercial property insurance is recommended for any business that rents its location.

Commercial property insurance provides coverage for business holdings. This can include a building or land that the business owns or rents. The policy also covers the contents of the building, as long as the contents are owned by the business. In short, the policy pays to repair or replace property or belongings.

How the Policy Works

This type of policy is generally made to fit the demands of each specific business. That means one policy might work for one company, but not for another. For this reason, it’s best to take each policy on a case by case basis. But the first step is always to determine the value of the building and its contents. With that information in hand, it will be easier to decide how much coverage is needed.

After an estimate of value has been reached, there are other factors to consider. Most important, the insurer must know other factors that affect the property. For instance, is the property located in an area at high risk for floods? Is it located in a flood zone? Is the property in a high crime area? All of these things can affect the overall price of the policy. The type of business being operated matters as well. Some businesses are high risk for accidents, such as fires or floods.

What Does the Policy Cover?

Commercial property insurance provides coverage for several things. The policyholder’s place of business is covered. This includes the outside and the inside. Fixtures, signs, fencing and similar items are included. Inventory, business documents, furniture, and computers are often included as well.