Commercial property insurance is used by businesses of all sizes and in all industries. This type of policy protects a company’s physical assets from a wide range of unforeseen events, such as storms, fires, explosions, vandalism and theft. Policyholders can also pay extra for additional coverage, such as protection against earthquakes, floods, equipment breakdown and other perils that could negatively affect the business.
While many businesses can get by with a standard commercial property insurance policy, some require added protection. Learn more about what commercial property insurance covers and how to customize a policy to achieve added protection against common business risks and liabilities.
What Does Commercial Property Insurance Cover?
Commercial property insurance is coverage that nearly every business owner can benefit from having, whether they work from home, lease an office or own a building. Commercial property insurance covers the building itself, as well as its contents and outside property. For example, the average commercial property insurance policy covers furniture, equipment, computers, fencing, landscaping, exterior signs, important documents, inventory and the property of third parties.
The cost of commercial property insurance is dependent on a number of factors, starting with location. Is the business located in an area that is prone to storms or natural disasters? Insurance companies also consider the construction of the building. Was it built with fireproof materials and does it contain up-to-date plumbing, electrical wiring and HVAC? Other factors can also influence premiums, such as occupancy and level of fire and theft protection, such as fire alarms and sprinkler systems.
Why Is a Custom Commercial Property Insurance Policy a Better Choice?
Similar to homeowners’ insurance, which offers optional add-ons like flood and earthquake coverage, commercial property insurance has customization options that provide business owners with better protection against specific risks that affect their industry or line of work.
Also referred to as ‘loss control,’ these services can save businesses money and can be tailored to meet their specific needs. For example, loss control services can be customized for professional services, mechanical breakdown, janitorial, manufacturers, electronic data processing (EDP), industrial parks and many others.
What to Consider When Customizing Commercial Property Insurance
Customizing a commercial property insurance policy can sometimes be tricky, especially when business owners are unsure of what coverage options they should have and which are unnecessary. Getting professional advice from an experienced insurance expert can help business owners make an informed decision regarding what types of insurance coverage are best suited for their business.
Here are some things to consider when customizing a commercial property insurance policy:
1. Industry Type
The type of industry that a business is in plays a key role in the type of commercial property insurance coverage they need. For example, a small coffee shop with just a couple of employees faces different operational and safety risks than a large manufacturing company with hundreds of laborers. Consider what unique risks are faced in that particular industry and choose coverage designed to cover those risks.
2. Level of Risk
Many business owners blindly rely on their general liability insurance or other basic coverages to protect them against risks. While these policies can be useful, they are not as comprehensive as some people may think. Carefully review any current business policies for the business and determine if there are any gaps in coverage. Also consider the level of risk associated with the business and what perils it could reasonably face, such as vandalism or natural disasters.
3. Physical Assets
Every business has at least some physical assets used to run its business. Office furniture, computers, printers, electrical equipment and other assets can be costly and difficult to replace if damaged or stolen. Having adequate coverage to protect costly business property is essential to ensure that assets can be replaced or repaired if they should become damaged or lost due to a covered event.
4. Cyber Attacks
Cyber security is a growing concern for businesses across the country. According to Accenture, cyber crimes are expected to cost businesses a whopping $5.2 trillion worldwide within the next five years. Many businesses are not able to absorb these extravagant costs, making insurance a must. Cyber insurance coverage is available to protect against data breaches and other cybersecurity-related incidents.
Get Started with Atlas Insurance
There is no one-size-fits-all policy for every business regardless of size, industry or location. That is why many businesses choose to achieve comprehensive protection by customizing their commercial property insurance.
Getting started is easy with help from a business insurance expert. The knowledgeable team at Atlas Insurance can help your business build a commercial insurance package that protects against specific industry risks and liabilities. To learn more about how to customize a commercial property insurance policy for added protection, reach out to Atlas Insurance at (800) 400-6680 or request an insurance quote online.