There are many things to consider when owning a business, including property insurance. If you have a business, you want to think about keeping it protected. Whether you own your property or lease a space, you need commercial property insurance. With this policy, commercial property insurance will protect your business and contents, including exterior fixtures, fences, and outdoor signs.
Commercial property insurance covers the replacement and repair of business assets in the event of damage from theft, fire, or vandalism. This coverage is vital since many businesses lack the funds to replace these items. You don’t want your business to suffer from unexpected losses. Commercial property insurance can keep your business up and running without any disruptions to your company. Let’s take a look at the basics of commercial property insurance.
What Is Commercial Property Insurance?
Commercial property insurance is also known as building insurance. This coverage will protect your businesses’ buildings, inventory, and equipment.
In most cases, your customers’ personal property is even protected from loss or damage under a variety of circumstances. Fire, explosions, storms, burst pipes, theft, and vandalism damage are all covered under most of these policies. Your supplies and fixtures are even protected under property insurance. Your plan will help to repair or replace those items that were damaged on your commercial property. If you live in an area with floods or earthquakes, you might need to purchase another type of policy. Commercial property insurance usually doesn’t cover these natural events.
Is This Type of Insurance Mandatory for All Businesses?
Most states will not require you to have commercial property insurance. However, many lenders will want to know you have it before they approve you for a loan. If you don’t have this insurance, then you will be responsible for replacing your stuff. It is recommended to have this insurance unless you want to pay out of the pocket during a catastrophic event.
Why Get Commercial Property Insurance?
Commercial property insurance will cover you in a disaster. You can go along with daily business without worrying about your property. With this insurance, your income and business will be protected. If you fail to purchase insurance, you will be responsible for:
Bankruptcy: If you have to rebuild your business from scratch, it can be a costly endeavor. In some cases, it can be almost impossible without an insurance payout.
Ruined reputation: If your business stores customers’ property and it gets destroyed, you might not have the resources to replace it. In addition to that, your customers will tell their friends and family about your business. Those reviews will not be glowing for your company.
Spoiled inventory: In some cases, your building and equipment are not damaged, but your inventory could be destroyed. This can happen for those businesses that handle flowers or food. If you don’t have insurance, you could lose your entire business.
Legal troubles: When you fail to repay your loans, employees, and vendors, you can land in court. These legal costs will be another unexpected expense for your business.
What Will Commercial Property Insurance Cover?
With property insurance, it will cover the physical elements of your business, but that coverage can vary depending on your company. If you run a food stand, the policy would cover your stand, employee uniforms, cash register, and all the food. You will have to speak to your insurance specialist to find the best coverage for your business.
Some policies will reimburse you for the cost of the destroyed items, and others will reimburse you for only the actual value. In most cases, the actual value is a lower value due to depreciation.
You can also mix and match your commercial property insurance to meet your business’ needs. There are also a la carte options that you can add for coverage that will protect your business.
The Costs of Commercial Property Insurance
Depending on your business assets, the cost of commercial property insurance will vary. Several factors will determine your price. These policies can range from a hundred dollars per month to over a million dollars per year.
Some of those risk factors include:
Location: If you have a business in an area prone to natural disasters or storms, your insurance policy might be higher than those businesses in other areas.
Construction: The construction of your business’ building also plays a significant role. Your premiums can vary if you have fireproof materials or upgraded electrical wiring.
Occupancy: The type of business is another factor for your insurance policy. An office environment will be cheaper to insure than a restaurant.
Fire and theft protection: You want to have the latest fire and theft protection for your business. A security system, fire alarm, and sprinkler system can help to lower the costs of your insurance plan.
As you can tell, several factors can play an essential role in protecting your business. If you have a business in a low crime area, you will pay less for your plan than those businesses in a flood-prone area.
You Need Property Insurance for Your Business
Commercial property insurance is vital for all businesses. When you need to find coverage for your business, you can turn to Lyman Insure. Our agents can help you choose the right policy for your company. We will walk you through the entire process to find the right coverage and price for your business. Our company will continue to work with you even after you have signed the final paperwork.
In the case of a catastrophic accident, we will help you to file a claim and walk you through the whole process. You can focus on your business as you leave the insurance details to us. We want to keep your entire business protected. When you need commercial property insurance, you should choose Lyman Insure for all your business needs.
If you would like to know more about Lyman Insure’s insurance options, please take a few minutes to fill out the contact form.