How to Find the Best Commercial Property Insurance for Your Needs
Commercial property insurance protects commercial property from various losses. Some common types of covered mishaps include fire, theft, and natural disasters. Examples of commercial property include retail locations, non-profit organizations, manufacturers, and service-based operations.
This type of insurance is similar to homeowner’s insurance, except it’s for commercial property. And a business owner can claim the insurance premiums as an expense on their taxes. As for the cost of the premiums, that depends on the following factors:
1. The location of the property. Property located in a high crime area will likely pay a higher premium. If the area is in a flood zone, that will affect the premiums as well. Some things, such as being near a fire station, can possibly lower the premium.
2. The durability of the construction materials. A property made with fire-resistant materials will have a lower premium than one without. If the building is in need of repair, that will also affect the premium amount.
3. The number of people occupying the building. If the building will have several tenants, then the premiums will be higher. It’s simply because the more people you have, the more likely a mishap is to occur. The type of work performed in the building will be considered as well. A building full of typists will have a lower premium than a building occupied by welders.
The Best Coverage for Your Property
You will have several options when it comes to what’s covered in your policy. Most commercial property insurance policies include options for direct damage to property, worker’s compensation, equipment coverage, and business automobile coverage. You might want to consider business interruption coverage, as well. This will compensate you for lost wages following a covered event. If you have to temporarily close the building for repairs, this option will compensate you for the downtime.
Benefits of Coverage
Commercial property insurance is a good investment for just about any business. It minimizes your financial loss risk, protects your assets from being seized to pay damages, and provides protection in the event of liability lawsuits.