What Insurance Do You Need for a Commercial Property?

When looking for a location for their business, many business owners can get caught up in the excitement of getting their feet off the ground and forget about one of the most important aspects of finding a commercial property—securing adequate insurance to protect that property.

Various unexpected events could damage or destroy your commercial property, potentially resulting in significant losses. Fortunately, commercial property insurance can help provide your business’s physical assets with much-needed protection against such losses. Keep reading for more information on commercial property coverage.

What Does Commercial Property Insurance Cover?
Commercial property insurance protects the physical assets of your business. Specifically, it can offer compensation if your commercial building, its attached structures or its contents are damaged or destroyed by a covered event. These events typically include:

Fire
Wind
Hail
Lightning
Vandalism

Additional Coverage Considerations
Depending on your location and the value of the business’s assets, you may need additional, specialized coverage. This coverage includes the following:

Flood insurance—Flood damage is not covered under basic commercial property insurance. You can purchase a separate policy in order to protect your company’s belongings from flood damage.
Earthquake insurance—Earthquakes are another disaster not covered under basic commercial property insurance. If you live in an area with a high rate of earthquakes, you may want to purchase a separate policy.
Equipment breakdown insurance—Equipment breakdown insurance provides compensation if your company’s equipment suddenly breaks down due to mechanical or electrical error. This insurance helps pay for repairs or a replacement.
Commercial auto insurance—Some businesses own or use commercial vehicles for work purposes. Commercial property policies will not cover work vehicles, so it’s crucial to have the right coverage in the event a commercial vehicle is lost or damaged from an accident. Commercial auto insurance offers much of the same coverage as personal auto insurance, such as comprehensive, collision, personal injury protection and uninsured/underinsured motorist coverage.

The coverage limits you need also depends on the unique aspects of your business. The size, location and industry all factor into your business’s specific coverage needs. Consult your trusted insurance agent for more information.

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