Finding the right commercial property insurance is important because an accident may occur when you least expect it. You're likely trying to avoid a situation where you may be forced to cover replacement or repair costs out of your own assets. There are two primary commercial property insurance policies to focus on. Here's an in-depth breakdown of each policy.
Here’s what you need to know about the two types of commercial property insurance in order to know which one’s best for your business:
All-Risk commercial property insurance covers your business in every scenario except for exclusions. Under all-risk insurance, your property may be covered if it suffers flood or earthquake damage. It's recommended that you pay close attention to the potential exclusions listed on your policy.
Research shows that some of the most common exclusions regarding all risk insurance include pollution, ordinance violations, nuclear hazards, and government destruction. Your insurer will notify you about the exclusions before finalizing your policy. It's recommended that you assess the unique needs of your business. You can pay an extra premium to add coverage for a previous exclusion to your policy.
Named Perils commercial property insurance covers you based on situations outlined in the contract. If flood damage isn't included in the policy, you'll be responsible for covering the costs out of pocket. It's recommended that you work closely with your insurer to ensure that the most common perils in your industry are included in the policy. Perhaps there are some perils in your policy that you believe aren’t necessary.
Maybe your business resides in a dry area without a lot of inclement weather. You may opt to take that peril out of your policy. Though, it's important to remember that you would be on the hook if an ice storm comes through the area and causes property damage. Common named perils to include water damage, interior and exterior damage, fire, vandalism, lightning, and wind damage.
Your commercial property insurance premiums depend on the number of covered perils included in your policy. It's recommended that you assess the industry your business is involved in, its size, the number of employees you have, and your location before choosing a policy. You'll also need to decide whether your commercial property insurance policy will reimburse you based on replacement cost or its current value, including depreciation.
Commercial property insurance is designed to protect you when an emergency arises. The team here at CF&P Insurance Brokers will help you assess your options and find the right policy to protect your business. Contact us today to get started!
