Insurance 4 Insurance

As the name implies, commercial property insurance is designed to protect you in the event property owned by your company is lost, damaged or stolen.  In most instances, it covers the cost to repair damaged property and to replace what you’ve lost.

Property insurance protects your business against physical damage to, or loss of, your assets. Assets, broadly defined, include the area in which your business operates and the property housed there. In the case of catastrophes like fire, explosion, theft, or vandalism, property insurance helps cover your costs - whether it’s to repair damaged property or replace what you’ve lost.

Property insurance should include a broad form of coverage to protect you from a variety of losses. Commercial Property protects your business against the loss or loss of use of company property. “Property” can include a variety of types: lost income or business interruption, buildings, computers, money, and valuable papers.

Different types of property insurance policies protect against different risks or perils, and they are often tailored to fit the needs of a particular business.  However, there are two general types of policies: named-peril policies and all-risk policies.

1. Named-peril policies protect against losses resulting from only those perils the policy names. 
2. All-risk policies protect against all perils expects those specifically named.  Most businesses are better off with an all-risk policy, as it offers broad coverage, rather than item-by-item coverage that may require separate policies for each class of property.

In terms of property, some policies cover basic equipment (building structure, furniture, inventory, equipment, and supplies); others insure money and securities, such as lost revenue or cash on the premises, and hard-to-replace records, such as accounts receivable, from damage or loss.

Events that do damage are known as perils or causes of loss, and include weather-related events such as lightning strikes or hail, or human causes such as robbery or vehicular accidents.

The Insurance Services Office (ISO) provides insurers with basic premiums incorporating a number of factors to determine the basic risk of your property. The primary factors in setting property insurance premiums include the type of building structure, the presence or absence of protective safety measures, and the proximity of your property to other high-risk areas.

How you are reimbursed for your loss is another way that policies differ.  A policy that offers replacement cost reimbursement will pay you for the actual cost of replacing your property.  If it offers actual cash value reimbursement, your reimbursement will be based on the replacement cost minus the physical depreciation of the property. Although actual cash value premiums are often lower, they usually pay out less and could fall short of what you need to replace your property.

Carefully read over your policy and make a special note of any exclusion, such as flood damage for example. Depending on your individual business and its location, you might want to purchase coverage for exclusions. You can buy separate policies to protect your property against perils that might be excluded from your commercial property insurance, or for those items for which you need specific coverage.

As the name implies, commercial property insurance is designed to protect you in the event property owned by your company is lost, damaged or stolen.  In most instances, it covers the cost to repair damaged property and to replace what you’ve lost.

Property insurance protects your business against physical damage to, or loss of, your assets. Assets, broadly defined, include the area in which your business operates and the property housed there. In the case of catastrophes like fire, explosion, theft, or vandalism, property insurance helps cover your costs - whether it’s to repair damaged property or replace what you’ve lost.

Property insurance should include a broad form of coverage to protect you from a variety of losses. Commercial Property protects your business against the loss or loss of use of company property. “Property” can include a variety of types: lost income or business interruption, buildings, computers, money, and valuable papers.

Different types of property insurance policies protect against different risks or perils, and they are often tailored to fit the needs of a particular business.  However, there are two general types of policies: named-peril policies and all-risk policies.

1. Named-peril policies protect against losses resulting from only those perils the policy names. 
2. All-risk policies protect against all perils expects those specifically named.  Most businesses are better off with an all-risk policy, as it offers broad coverage, rather than item-by-item coverage that may require separate policies for each class of property.

In terms of property, some policies cover basic equipment (building structure, furniture, inventory, equipment, and supplies); others insure money and securities, such as lost revenue or cash on the premises, and hard-to-replace records, such as accounts receivable, from damage or loss.

Events that do damage are known as perils or causes of loss, and include weather-related events such as lightning strikes or hail, or human causes such as robbery or vehicular accidents.

The Insurance Services Office (ISO) provides insurers with basic premiums incorporating a number of factors to determine the basic risk of your property. The primary factors in setting property insurance premiums include the type of building structure, the presence or absence of protective safety measures, and the proximity of your property to other high-risk areas.

How you are reimbursed for your loss is another way that policies differ.  A policy that offers replacement cost reimbursement will pay you for the actual cost of replacing your property.  If it offers actual cash value reimbursement, your reimbursement will be based on the replacement cost minus the physical depreciation of the property. Although actual cash value premiums are often lower, they usually pay out less and could fall short of what you need to replace your property.

Carefully read over your policy and make a special note of any exclusion, such as flood damage for example. Depending on your individual business and its location, you might want to purchase coverage for exclusions. You can buy separate policies to protect your property against perils that might be excluded from your commercial property insurance, or for those items for which you need specific coverage.