From tools, to computers, to inventory, to the very building you operate in, you’ve invested in items that ensure your business runs smoothly. Property insurance protects that investment by providing coverage in case those items are stolen or damaged, making sure that you can resume operations as fast as possible.
What is Commercial Property Insurance?
In short, commercial property insurance provides coverage for the “stuff” that makes your business work. A law firm might take out a commercial property policy to cover its furniture, records, and computers; a contractor to protect their tools, lumber, and workshop; and a restaurant to insure their product, kitchen equipment, and dining area furnishings. Covered items are as diverse as the industries and businesses for which they are written, but, with a few exceptions, if you own equipment, buildings, or other items crucial to the operation of your business, it’s worth investigating whether a commercial property policy is right for your business.
Who Needs Commercial Property Insurance?
Take a minute to consider what would happen if a fire destroyed the building that houses your business, along with all of the furnishings, computers, equipment, and other items inside.
This scenario would be a setback for anyone, but some more than others. A solo practitioner who rents space or works from home may only lose a computer and a couple items of office furniture—making it possible for them to replace these items without outside support, but operations that are even slightly more complex are a wildly different story. Imagine if a dental practice had to replace all of its X-ray machines and other equipment in one go, or a landscaper needed new mowers, weed eaters, hand tools, and other equipment in one fell swoop. These businesses would likely have a hard time scraping together the cash to make these purchases and may have to shut their doors permanently after a major disaster.
In general, if it would pose a significant hardship to replace the equipment, buildings, furnishings, computers, or other items critical to the functioning of your business, then a commercial property policy is likely in order.
What Items and Events Does it Cover?
These versatile policies provide coverage for most of the items that you have purchased for your business, including but not limited to,
· Buildings you own
· Raw materials
Your commercial property policy will cover the cost of replacing these, and many other items, as long as they are lost due to a covered risk. Common covered risks include fire, theft, wind, and storms, among others. Most commercial property policies carry exclusions for flooding and earthquakes, so you’ll want to speak with your independent insurance agent about additional coverage if these are a concern.
How Do I Purchase Commercial Property Insurance?
If you have a business owners policy, or BOP, there is a strong likelihood that you already have commercial property coverage, as this coverage is a common component of these packages. If you don’t already have a BOP, or are unsure about your coverage, one of the independent agents at Moreland would be happy to help you take a look at your business property, assess your needs, and purchase a policy that keeps your investment in your business secure.