As a business owner, one of your primary objectives is to maximize profits while minimizing risks. If something happens to your property and equipment, you could face a financial catastrophe.
Commercial property insurance covers your business if your assets are damaged due to possible theft, vandalism, or inclement weather. The policy is flexible enough to cover your building, equipment, tools, and inventory. This gives you peace of mind that your repairs will be covered.
Factors to Consider While Buying Commercial Property Insurance
Location
If your building is located in an area near a fire station, you may qualify for a lower insurance premium. You can also receive a discount if you have sprinklers installed on your property. Your rates are also impacted if you stay in an area prone to inclement weather or active crime. Other properties in the area can also affect your insurance premium.
Tenant
The purpose of the property may also impact your policy. Your insurer may view your business as high risk, which will cause your premiums to rise.
Construction
Building materials also impact insurance premiums. Some materials aren't durable, which makes them more expensive to insure. Older buildings that lack the recent technological innovations are also more costly to insure.
Calculating Premiums
Generally, commercial property premiums are calculated by looking at the value of the building and multiplying that according to possible risk factors. Insurance companies tend to compensate their clients through actual cash value or replacement cost. The replacement cost looks at the amount of money it takes to replace damaged or destroyed property. The actual cash value measures the replacement value while also considering depreciation. Actual cash value policies are more affordable than replacement cost policies but provide fewer benefits.
Covered Perils
Commercial property insurance covers all of the property you rely on to operate your business. It also covers items on your property that are owned by someone else.
Extra Coverage
While commercial property insurance covers multiple potential losses, there are some possible exclusions. Therefore, it may benefit you to add extra coverage. For example, business interruption insurance would cover your lost income if your business is shut down for an extended period of time. You want to make sure that you are protected in every situation.
Cost of Coverage
Generally, the average
commercial property insurance policy costs $2,000. There are multiple variables that impact the cost of your coverage.
Things to Consider
You can customize your policy to fit the individual needs of your business. Look for a plan that aligns with your budget. You want a policy that doesn't leave you vulnerable to risks. If you operate your business remotely, you should still consider purchasing coverage. You can cover all of the equipment that you use at home in the event of a disaster.
Commercial property coverage can also protect any sensitive data stored on your network, such as financial information. This covers your business against the threat of computer hackers.
Commercial property insurance alleviates stress and allows you to focus on taking your business to the next level. Consider all of the various factors before finalizing your policy. Our team here at
CF&P Insurance Brokers will help you find the right policy to protect your business.
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