The post Commercial Property Insurance by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.
Commercial property insurance is a must-have if your business uses specialized equipment, operates from a location outside your home or maintains inventory. Read on to learn more about how coverage works, what is covered and not covered under a standard policy, who needs coverage and how to compare plans. If you’re ready to compare quotes, see our side-by-side comparison table just a few scrolls down to find the best business insurance.
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What is Commercial Property Insurance?
Commercial property insurance is coverage that protects the physical property, equipment and other assets associated with your business. Your policy will include a list of covered perils, which you will agree to pay a premium in exchange for financial protection against.
Best Commercial Property Insurance Providers
Not sure where to start your search for the best possible commercial business insurance policy? Consider beginning with a few of our favorite providers below.
get started
Call Now
securely through Tivly’s
website
Shopping for commercial insurance can be a daunting task. You need to contact multiple insurance companies, ask each for quotes on the different types of insurance and then finally compare quotes to make the best choice.
Or you could simplify things and visit Tivly. With Tivly, you can easily get a quote on the insurance you need from reputable insurance companies like Progressive, The Hartford and Liberty Mutual Insurance. You can start your fast, free quote online or call now.
Tivly can connect you with all types of business insurance, including general liability, commercial property and workers’ compensation insurance. It’s best for business owners who want to save time and money by getting matched with a provider that best fits your needs.
Best For
- Busy business owners
- Getting the insurance you need quickly
- Easy quote process
- Partnered with over 200 providers
- Will match you with the one that fits your needs
- No mobile app
- No tools for managing multiple policies from different providers
get started
Call Now
securely through The Hartford’s
website
The Hartford is a leader in casualty and property insurance. It brings more than 200 years of experience in developing and providing insurance products. The company uses a quote-based pricing scheme to offer insurance in 2 main segments: commercial and personal lines.
Its commercial segment serves over 1 million small businesses. The personal segment offers only nationally-endorsed home and auto insurance through the AARP® Insurance Program. The Hartford sells its products mainly through a network of independent brokers and agents.
The company is also a 12-time honoree for the world’s most ethical companies according to The Ethisphere Institute. It delivers the name recognition and reputation of an experienced insurance carrier.
Best For
- Those looking for an experienced insurance provider
- Multiple coverage options with 1 carrier
- More than 200 years of insurance experience
- Provides online quotes
- Has a solid financial rating
- Offers a wide range of commercial insurance products
- Pricing is entirely quote-based
get started
securely through coverwallet’s
website
Shopping for business insurance can be a tedious process. It takes time to collect and review quotes and coverage unless you visit CoverWallet. CoverWallet, an Aon company, makes it easy to get quotes from multiple insurance providers.
With CoverWallet, you can start by talking with an insurance advisor or start directly with quotes. You can get quotes from multiple reputable insurers, including Hiscox, Chubb and Progressive. Choose from a wide range of coverage options to protect every area of your business, including workers’ compensation, general liability and commercial property insurance.
Once you decide on your insurance coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to send copies of your insurance certificates when needed, file claims and pay premiums. It keeps your policies organized and allows you to reach out to an expert at any time.
CoverWallet also offers extensive educational resources. You can review its recommended coverage by industry. You can also dig into more specific information based on your industry, location, number of employees and annual revenue.
The one drawback to the CoverWallet is that it doesn’t have a mobile app. You can still access the site through your mobile browser and you can call any time for assistance. Overall, CoverWallet makes it easy to shop for and buy business insurance, and it’s an excellent fit for small businesses and the self-employed.
Best For
- Self-employed
- Start ups
- Small to medium businesses
- Can get multiple quotes easily
- Can learn about recommended insurance for your industry
- Offers many types of insurance
- No mobile app
get started
securely through Thimble Business Insurance’s
website
It’s not often that you see something new in the insurance space but Thimble has come up with something unique — flexible small business insurance. You can buy liability insurance policies by the month, the day or even by the hour. Even better, you can apply in under 60 seconds. In this Thimble review, we’ll dive into how it works and how it can benefit your business.
Best For
- Handymen, landscapers and contractors
- Self-employed individuals
- Seasonal business owners
- Freelancers who do multiple types of work
- Flexible general liability and professional liability policy options
- Fast application process
- Ability to pause monthly coverage
- High-quality mobile apps
- No 24/7 Customer Support
get started
securely through Next Business Insurance’s
website
NEXT is a business insurance provider dedicated to helping small business owners find affordable, customized policies that fit the unique risks of their industry. NEXT offers a complete suite of the most common business insurance protections that you might need, and you can apply for a policy entirely online.
Getting insurance through NEXT takes less than 10 minutes — simply choose your business type, answer a few questions about your experience and history and purchase coverage. You can adjust your policies and coverage limits to balance cost and protections with just a few clicks.
Though NEXT’s 100% online model might not be right for everyone, it can be a strong contender for digital natives in search of affordable insurance.
Best For
- Small business owners looking for quick, affordable coverage available online
- Apply for a policy in as little as 10 minutes
- Policies customized to industry type and need
- Discounts available on bundled policies
- No option for paper policy application
- May need to connect with a representative if your occupation isn’t listed
Try Simply Business
Get started
securely through Simply Business’s
website
When you’re a small business owner, you have a lot on your plate. Finding the best insurance policies for your business probably isn’t on the top of your list. Simply Business makes it easy to get the coverage you need. It’s a digital small business insurance agency, which means it offers coverage from multiple insurance carriers.
With Simply Business you can compare quotes and coverage options from multiple companies to determine what’s best for you. Simply Business works with top providers like Hiscox, Travelers and Axis Insurance Company.
You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away.
Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography.
While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance.
If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break.
Best For
- Small business owners
- Sole proprietors
- Quick quote process
- Licensed agents to assist you
- Can choose from top insurance providers
- No mobile app
Simply Business offers a comprehensive suite of business insurance that specializes in making it easy to insure your business. Whether you’re looking for construction workers’ insurance or insurance for your startup, Simply Business helps you find the right commercial property insurance at the right price.
Tell Simply Business a little bit about your business and you’ll get almost-instantaneous affordable quotes from top insurance providers to protect your business and safeguard employees if they’re hurt on the job. You can also look into workers’ comp, business owner’s plans, liability insurance, commercial auto and more that will cover everyone on your team, and you can get covered in accordance with state law without overspending.
Building your business is hard enough. Let Simply Business make it easier. Get a quote from Simply Business today.
How Does Commercial Property Insurance Work?
Commercial property insurance is usually bundled with other types of business insurance policies, such as commercial general liability. Commercial property insurance companies consider the location, construction, occupancy and fire and theft protection of a property when establishing the policy and determining what you’ll pay in monthly premiums to maintain your coverage.
Like most types of insurance, your commercial property insurance will include a deductible. A policy’s deductible is the minimum amount of money that you’ll need to pay towards repair of damage before your insurance “kicks in” and starts paying for damage resulting from a covered peril on your policy. You may be able to secure a lower monthly premium by choosing a higher deductible. However, it’s important to choose a deductible that you won’t struggle to pay in the event that you do need to use your policy.
Location of the building or office that you’re insuring affects your policy. Buildings in areas that have better fire protection may be cheaper to insure than buildings in areas that have limited fire protection, such as rural areas. Location also accounts for whether the area is prone to storms or other natural disasters that can cause damage, which will have a major effect on the cost of your coverage.
Construction of the property is also important to the policy. If the building is made of more combustible materials, such as wood, as opposed to fire-resistant materials, such as steel, the policy will likely be more expensive. Structural elements that are within the building are also considered here. Wood structures can affect the policy negatively whereas fire-resistant floors or other special safety structures can help you save money on your coverage.
Occupancy refers to the type of business that occupies the commercial space, which will affect the type of coverage that you’ll need to invest in for your space. This is because different types of businesses come with different types of risks. An office building will have different coverage in its policy than a restaurant would. Some types of businesses can be considered by insurance companies as more hazardous, which can increase what you pay for your coverage.
What Do These Policies Cover?
A space or tool is considered to be commercial property if it is used in an office or workshop, leased or owned by a business, a manufactured product, any type of inventory, leased equipment or anything else essentially required for your business to function.
Most people consider investing in commercial property insurance for an office or storefront, but it’s a good idea to have coverage for items as well, such as manufactured products.
Coverage from commercial property insurance varies policy to policy. As a general rule, you can expect your commercial property insurance policy to cover at least the following structures and items.
- The entire premises of the commercial space, including the building itself and the landscaping
- Tools and equipment used by the business and inside the commercial space, such as computers and phones
- Inventory (mostly for businesses that are manufacturing products)
- Furniture and office supplies
- Accounting records or any other types of important documents
- Personal property that is being used for business purposes, such as a laptop
Policies should be tailored to your business, but the following are a few general examples of what would be covered with this type of policy:
- Replacement or repair of the building or structure damaged in a fire
- Any water damage caused by a pipe breaking or another plumbing issue
- Replacement costs for any equipment or merchandise that was stolen
- Repair or replacement of installed fixtures, machinery or equipment
- Repair of the building that was subject to vandalism
- Repair of any damage caused by a natural disaster that you have an endorsement for
Commercial Property Insurance Covered Perils
Like your homeowner’s insurance policy, your commercial insurance policy will also include a list of covered “perils,” which are instances when damage to your property is covered. For example, fire is usually considered a covered peril on most commercial insurance policies. This means that your insurance will help you pay for damage resulting from a fire.
On the other hand, intentional damage is usually considered an uncovered peril, which means that your insurance won’t pay out any money towards repairing damage that you caused yourself. Covered and uncovered perils may vary depending on the insurance provider you work with, so be sure to review your individual policy for more information.
What Doesn’t Commercial Property Cover?
The most important thing to note is that commercial property insurance doesn’t cover any part of a building or structure that was not listed on the declarations page of the policy. You must declare all parts of the building and structure or anything being constructed in order for it to be covered. Keep your policy updated, and review your declarations section regularly to be sure that everything you want covered is covered. If you recently renovated or added another part of a building, add it to the policy immediately.
In addition, commercial property insurance does not cover anything involving vehicles owned and used by your business. You’ll need to invest in a separate commercial auto insurance policy to maintain coverage for business vehicles.
Commercial property insurance does not cover liability for employees who are injured on the job either, as these incidents are covered by worker’s compensation insurance. If you have 1 or more employees, you might be required to maintain at least a certain level of worker’s compensation insurance.
This type of policy doesn’t cover the cost of relocating your business due to damage. In addition, it won’t cover any lost revenue or expenses that may come as a result of the business shutting down to repair damage.
These policies also don’t offer protection from possible cyberattacks and data breaches. If you hold sensitive information on behalf of patients, customers or clients, you can purchase a cyber liability insurance policy to protect yourself against these types of attacks.
Commercial property insurance doesn’t cover any damage caused by a natural disaster unless you have any endorsement for that occurrence. For example, if your business is located in an area that is at higher risk for damage due to hurricanes, then that peril must be specifically included in the policy. If your business is located in a flood zone, you’ll also need to purchase an additional flood insurance policy extension.
Does Your Business Need Commercial Property Insurance?
No matter if you’re a sole proprietor or the owner of a company with 100 employees, you should consider coverage of this type. You have no idea when damage will occur on your property — and if you don’t have insurance coverage, you could be left with thousands of dollars in repair bills. If you rent your commercial space, your landlord might require that you maintain at least a certain level of commercial rental insurance as a term of your lease. At times, you may need to purchase that coverage before signing the lease. In extreme cases, landlords will charge you for coverage even if you don’t obtain a policy (because they have a partner from which they can purchase coverage.)
Commercial property insurance can be essential to businesses that have equipment that is expensive, or must have a designated space in order to get work done. This kind of insurance offers coverage for any type of commercial property that you might use to complete your business operations.
Get a Quote for Coverage
Aside from your property, you need to make sure every aspect of your business is protected from financial risk. You should also consider a general liability insurance policy, which you can often combine together with your commercial property insurance under a business owner’s policy (BOP). We recommend connecting with an insurance agent in your area to learn more about the types of coverage you’re required to carry in your state and industry.
If you need more business resources, visit the U.S. Small Business Administration to learn more.
Frequently Asked Questions
What does a commercial property insurance policy cover?
Commercial property insurance helps protect the physical location where you operate your business from, similar to the way that your homeowner’s insurance protects your home. Some common perils that your commercial property insurance may protect you against include fires, vandalism, theft and more.
Answer Link
How is commercial property insurance calculated?
The specific price that you’ll pay each month for your commercial property insurance can vary depending on a range of factors. Some of the most common factors that influence what you’ll pay for your commercial property insurance include:
- Where your business is located
- The type of business that you run
- The type of equipment that you use
- Any safety features that your commercial space has installed
Your claims history will also play a role in the price that you pay for your insurance coverage, as business owners who have filed an insurance claim in the past are statistically more likely to need to file a claim in the future.
Answer Link
Can I adjust my coverage limits and deductibles in my property insurance?
Yes, most insurance companies offer flexibility in adjusting coverage limits and deductibles to meet the specific needs and budget of a business. Increasing deductibles can lower premium costs, while increasing coverage limits provides greater protection but may lead to higher premiums.
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The post Commercial Property Insurance by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.