What is commercial property insurance, and what aspects of my business does it cover?
Commercial property insurance helps protect a business by paying for all or part of costs when a covered loss occurs. In this way, property insurance can help keep businesses open if losses occur, whether you own, rent, or lease the business building.
Businesses can purchase commercial property insurance for basic causes of loss, for instance a fire insurance policy, but the majority of businesses choose a more comprehensive plan, known as a Businessowners Policy or BOP. A BOP provides coverage for damage to the business’ buildings, including installed fixtures, machines, and equipment; and outdoor fixtures. A BOP also covers business contents such as your inventory, machinery, and computers. Items owned by others but that are in your care, custody, and control are also covered to the extent the business is legally liable for that property.
There are, however, some causes of loss that are not covered by commercial property insurance or a BOP, but that can be added by endorsement. Some of these include employee dishonesty, steam boiler breakdown, flood, earthquake, and crime. Take note, also, that not all of your business property is covered with a commercial property policy. For instance, you might need additional coverage for commercial autos, outdoor fences, and signs not attached to your building.
Your independent insurance agent can review your business needs with you to make sure you have the necessary coverage for your unique business needs. And remember to discuss your disaster recovery plans with your agent to ensure you have coverage for lost income and extra expenses that result when recovering from a covered loss.