If you are a business owner, you know how important it is to protect your property. Regardless of the industry an organization is in, commercial property—both buildings and their contents—can become damaged due to fires and natural disasters or have a theft occur. For this reason, it is imperative to acquire commercial property insurance coverage. Here is a close look at commercial property insurance and what it entails.
Commercial Property Insurance Coverage
Commercial property insurance is designed to help business owners shield all property that is key to their daily operations. While similar to other forms of coverage, there are exceptions regarding the types of incidents that a insurance policy covers. Here, we will focus on the three primary areas of coverage that most commercial property insurance policies include: building coverage, contents coverage, and exterior property coverage.
One of the main things that a commercial property insurance policy covers is the building where your business is located. Most policies include coverage for rented buildings as well. A physical structure is an essential component of any organization’s business operations, especially for companies that manufacture products (e.g. factories). Your building can become damaged in a fire, flood, or another similar event.
In addition to covering your business’s physical location, a insurance policy also covers the contents of your workplace. This includes all office equipment, (computers, phones, furniture, etc.) regardless of whether it is owned or leased, as well as any inventory kept in stock. Your policy also covers accounting records, contractual agreements, and other important business documents, as well as manufacturing or processing equipment.
Exterior Property Coverage
Commercial property insurance can also cover any items you own that are located outside your building. This includes objects such as signs, satellite dishes, fences, and landscaping (trees, potted plants, etc.). Be sure to ask your insurance company whether you will need to pay additional fees to protect any of these items. Commercial vehicles such as trucks and vans are generally not covered under this type of policy. For this, you may likely need to purchase a separate commercial auto insurance policy.
Factors Which Influence The Cost Of Commercial Property Insurance
The cost of a commercial property insurance policy depends largely on the total value of a company’s business assets, including the building the organization is located in. However, there are four other factors that typically impact insurance premiums.
The Location Of Your Building
If your building is located in an area where hurricanes and other natural disasters frequently occur, you will likely pay more for commercial property insurance. The same is true if your building is located in an area where robberies, vandalism or other forms of crime are common.
The Materials With Which Your Building Was Constructed
In addition to your building’s location, the materials that were used to build it will often influence what you pay for commercial property insurance. If your building was constructed using fire-resistant materials such as concrete, stucco and gypsum, your insurance premium will likely be higher. If it has new plumbing or HVAC systems, this can also impact the cost of your insurance.
The Type Of Industry Your Business Operates Within
The cost of your insurance will frequently vary depending on the industry your company belongs to. For example, an accounting firm’s office typically carries relatively less physical risk than an auto body shop or a restaurant.
Fire & Theft Protection Measures
If your company has a fire alarm or any other type of security system, this can typically lower the cost of your commercial property insurance. The distance between your business and the nearest fire hydrant or fire station may also impact your premiums.
Speak To A Professional Business Insurance Agency
Reach out to the professionals at Southern States Insurance in Alpharetta, Georgia for more information on insurance and its benefits. Since our founding in 1992, we have grown to become one of the largest, privately-held independent insurance agencies in the Southeastern United States. We work with nearly every major carrier and are dedicated to helping clients find the best possible insurance solutions.
At Southern States Insurance, we offer commercial property insurance both individually and as part of a Business Owner’s Policy (BOP), which combines property and liability coverage. For the former type of policy, areas of coverage include buildings, equipment, furniture, inventory, and outdoor signs. Depending on your business’s unique needs, we can also customize our policies.
Call Southern States Insurance today at (888) 971-6304 or contact us online to learn more about our insurance policies or to request a quote.