Getting started with commercial property insurance can be quite daunting with the vast amounts of information needed to understand it all. We’re here to give you a rundown of the different terms related to business property insurance, necessary documents, and policies to protect your commercial property.
Other than that, you are of course encouraged to compare cheap commercial property insurance quotes online through the top of this page and purchase the cheapest business property insurance coverage that best fits your business needs from the best commercial property insurance companies, or simply get a Business Owner's Policy, which includes commercial property coverage within it, as well as other vital business insurance policies.
Commercial property insurance, as the name implies, insures all commercial properties and its equipment from hazards such as vandalism, fire, theft and robbery, weather conditions and any kind of damage to the business physical assets specified under the policy. Most businesses make use of commercial property insurance, also called business property insurance, to protect their business related physical assets. Earthquakes and floods normally aren't covered by commercial property insurance coverage, unless these perils are included in the policy.
Generally, it is recommended for evert business to create a list of physical assets related to the business before comparing commercial property insurance quotes and talking to insurers or agents. Commercial property insurance carriers consider each part, the average the value of its inventory or the average value of the property itself when determining the overall value of your covered commercial property.
Commercial property insurance coverage covers:
Robberies or theft
Riots and looting damage
Injuries caused to customers that are related to the business property
Damaged exterior property, such as signs, for example
Contents of the commercial property
It is essential to identify possible risks in your commercial space. These allow businesses to take preventive measures to prepare, in addition to your commercial building insurance.
Being aware of the covered situations benefits your business and help it understand how to stay protected and reduce potential expenses and risks, which will reduce your business building insurance cost as well.
When it comes to insurance for buildings, general conditions include the location, materials and structures involved in the construction, occupancy of the building, and protection from fire and theft.
Your commercial property policy describes what is considered a covered property. Aside from potential risks, it identifies the two main categories of a property:
1. Business Personal Property (BPP)
Business personal property (BPP) relates to any movable property, contents and equipment owned by the business. This can include business supplies, furniture, interior design items, machinery, computers, and everything else that is owned by the business except for the commercial building itself.
Business personal property covers property owned relating to the business such as materials, goods, and improvements were made to the rented building.
2. Business Building or Real Property
Business real property includes its offices, factories, warehouses and any other properties or physical facilities that the business owns. Business real property does not include equipment and movable property of the business.
Commercial property building insurance can cover permanently installed equipment and machinery, fixtures attached to the building, supplies, appliances, furniture, and fire extinguishers.
If your business owns both the property/building and the business that operates in it, a commercial property insurance policy that covers both categories, business building and business personal property, or BPP, is the right choice for you.
On the other hand, if your business rents the building or property where it operates in, your commercial property insurance policy is only applicable for Business Personal Property, as you are solely liable for your business movable items/assets.
Yes! Commercial property insurance policies don't just provide you with insurance for buildings where your business is operated at, but rather, it additionally covers its contents. This includes all movable property owned by your business.
Mostly no. The vast majority of commercial property insurance policies don't cover commercial flood damage, unless particularly specified in the policy with commercial flood insurance coverage or as an additional peril to your existing commercial property insurance.
Yes. Looting, vandalism, civil commotion and riot damage are considered covered perils under all commercial property insurance policies.
Yes. Commercial property insurance does cover theft and the repair or replacement costs of business property that is either stolen, damaged or destroyed.
Not always. Roof leaks are covered by commercial property insurance policies in case these leaks were caused by covered perils under the policy, whether it's hail or wind damage or a different cause, it must be a covered peril in order for your business roof leak to be covered.
Mostly no. Most commercial property insurance policies do not cover damage caused to your business property by earthquakes, unless it is specified as a covered peril in your policy, and you will either have to buy and additional policy, or add it as a covered peril under your current commercial property insurance policy.
Yes. Commercial property insurance covers explosions and fire damage to your business property and physical assets.
No. Most commercial property insurance policies do not cover damage caused to a business property by termites or pests.
Other Types of Commercial Property Insurance
Businesses and commercial properties also vary depending on your type of chosen business. There are other commercial areas which have specified insurance plans depending on the events and risks which generally occur in the line of work. In any situation, the commercial property owners insurance will rely on the business owner’s assets and having to identify which best suits their needs. Let’s discuss them one by one.
Renting commercial properties and investing in real estate is a large market. With any business, protecting assets should be given as much attention as it takes to grow your company. Guarding against potential risks such as withstanding extreme weather conditions for your property is essential in commercial real estate insurance.
With commercial real estate insurance, it also includes commercial property insurance and general liability insurance. As previously mentioned, the commercial property insurance covers the physical assets and damage caused by situations. Simply put, the property where your business premises insurance is located.
On the other hand, general liability insurance is concerned with third party situations involving injuries or harm within the business premises. In the event of a possible lawsuit, the commercial real estate property insurance protects your commercial space from potential legal problems.
Typical commercial real estate policies cover damage caused by weather conditions, except for floods and earthquakes, crime, fire, and customer-related incidents. In identifying which insurance best suits your business, it will rely on the type of real estate owned and how large is the company as it will have its risks.
Available commercial properties can be occupied or vacant. Spaces undergoing renovations or have no tenants are still viable for insurance. The unoccupied commercial property insurance keeps those properties insured which there are no current users of the commercial space. Generally, it is more difficult to acquire insurance for vacant retail spaces as it poses a higher risk for damages.
These types of properties are more prone to potential harm due to the lack of continuous monitoring. This can lead to unwelcome people that may cause further damage. Nevertheless, unoccupied commercial property insurance covers protection for most situations such as floods, earthquakes, falling debris, fire, and third-party involvements.
Compared to real estate, commercial landlords tend to both the tenants and the property involved in their business. Aside from the assets, commercial landlord insurance covers legal settlements, losses, and damage to the rental properties.
Commercial landlord liability insurance covers the landlord from possible problems involved with tenants such as damaged personal property or personal injuries. It serves as protection from legal situations which may go out of hand when not handled correctly. It protects not only the landlord but provides the commercial tenant insurance in the case. Examples of these include having to pay medical coverage, legal dues, and damage to personal property of the people involved through commercial rental property insurance.
Aside from the tenants, the landlord may also opt to have commercial property landlord insurance covering potential repairs. Similar to previously mentioned insurance coverage, it protects the property from damage caused by weather conditions and robbery. It is necessary to acquire defences through commercial buildings insurance for landlords to reduce risks for your business.
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Inland marine refers to equipment and goods transported on land through trains or trucks. Business property travelled or transported are protected through acquiring commercial inland marine insurance.
The commercial inland marine policy covers commercial property at a specific location and includes most of the materials being transported with the employees. Also, it covers specialized materials such as the following:
Computer systems and servers
Samples of sales or goods
Cargo or deliverables
Special considerations are also given to inland marine specific ventures such as providing coverage for materials loaded onto trucks, protecting valuables while on an exhibit, and property left in the care of others who are operating your business.
Commercial inland marine insurance is advantageous for businesses with movable parts and properties to maximize safety and quality. This type of insurance can be added in a standard business insurance policy. It is recommended for businesses which require transporting or shipping goods, especially high-value products.
Businesses often start from small ventures, and even then, it is crucial to keep your properties and assets protected. Various insurance companies assist small business owners in staying on top of potential risks and having a recovery plan in the event of a problem.
A small business property insurance can cover either single events or provide multiple coverage in one policy. Most are inclined to take the package to protect their business from various losses in a single package. This is often referred to as the Businessowners Policy (BOP) wherein it collates coverage for significant liability and property insurance into one package for the small businesses. They also offer optional coverages should your business be located in risk-specific areas. However, small to medium-sized businesses need to meet criteria to qualify. These include how large the business premises is, the type of business, offsite activity, and limits of liability.
Generally, the BOP includes the protection of buildings owned by the business and properties related to its operation. Its coverage involves the equipment within the structure, inventory, tools, and properties of others legally claimed by the business.
Aside from the commercial property involved, the BOP also ensures to protect harmful situations to the business such as interruptions, dealings with counterfeit money and orders, forgery, and actions taken by authorities preventing you from accessing your property.
In every business, some situations are unavoidable and often lead to unwanted casualties. In small business insurance, commercial property and casualty insurance fall under this spectrum to shield the business from harm and threat related to environments and belongings of the people involved.
As mentioned previously, the BOP also may include commercial casualty insurance in the bundles offered to small businesses. Situations specific to this type of insurance provide compensation of workers, employer's liability, errors and omissions, general liability, and cyber liability. It is recommended to prevent potential risks for these businesses by considering availing insure for commercial casualties.
After all that information regarding what commercial property insurance is and what to get, the question now is, where to start? There are so many commercial property insurance companies out there. Luckily, you can compare cheap quotes from the best business property insurance companies online through this page and do your comparison and shopping with ease.
Experts and professionals in commercial insurance ensure your business’ needs and provide structured insurance plans. As previously mentioned, they assess your assets and inventory to determine costs and value. Agents from companies are usually the first contact in acquiring insurance through these commercial property insurance carriers.
As seen in the different kinds of insurance we've discussed, each one has specific coverages that they can offer. Commercial property insurance carriers often have particular business insurance they specialize in, and some provide overall coverage in commercial properties. In choosing where to start, it is best to identify what your business needs and assessing your commercial property setup. There are various companies available online for you to check and determine which best suits your needs.
Aside from acquiring insurance directly from an agent of one insurance company, commercial property insurance brokers step in to represent various companies at once. This is also essential in helping you determine the information needed for a commercial building insurance quote from companies. However, with every choice, it has its pros and cons.
|Their lack of commitment to a single company allows them to have a broader perspective of the benefits and offers of each company best suited to your needs. They compare prices and coverages on each company to find what you want.Options regarding insurance policies are already laid out for you by the broker, reducing the need to search for them yourself.Brokers focus on your business needs to find the best match.Due to their connections to various insurance companies, you can secure all other needed insurance plans to one broker.||They are commission-based, and their motivation may not be entirely sincere. Although brokers generally would want you to achieve the best insurance for your business, some may still try to oversell an insurance policy to gain a higher commission.They may suggest additional coverage despite your stated needs. It is best to remind yourself of your goals for your business to refrain from getting unnecessary deals.|
The primary difference between insurance brokers and agents is their target objective which may affect how they choose to sell the insurance package. Insurance agents are trained to represent their own commercial property insurance company but show commitment to one carrier. The objective of brokers is to find the best insurance policy for you from all the choices available in the market.
Deciding to ensure your business is already a step forward in reducing risks and shielding your business from dangers. Both the agent and the broker provide ways for you to ensure protection against potential harm and threats to your commercial properties. In the end, it is your choice to determine what best suits your needs and what will propel your business forward.
In the world of insurance, there is paperwork and documents that need to be filed with almost everything. Association for Operations Research and Development or ACORD forms are widely common in accomplishing a standard for documentation in the insurance industry. These are regularly updated and available online.
In commercial property insurance, acord 140 (Property Section) and acord 28 (Evidence of Commercial Property Insurance) are usually needed. Let’s take a look at acord 140 first.
The acord 140 or Property Section form is used for specific property information and is always submitted alongside the acord 125 or the Commercial Insurance Application. It is widely used in almost all commercial insurance policies. An acord 140 sample can be seen below. There are no available filled samples of the full form, but this is the exact form used. The acord 140 fillable, printable pdf form can be found here.
The acord 140 instructions involve filling out pages one to three:
Agency and Insured Information - these involve having to input the Agency Name, Named Insured, and Effective Date
Premises Information - inputting the Premises and Building number, and Premises address will be completed along with the street address, city, state, and zip code.
Subject of Insurance - all coverage needed at the specified location such as building, personal property, and business income will be listed.
Amount - the amount of coverage needed will be placed for each item placed in the subject.
Coinsurance - this is the total value of the corresponding subject being insured in percentage.
Valuation - it may be “A” for actual cash value or “R” for replacement cost.
Causes of Loss - it may be basic, broad, special, special including theft, and special excluding theft.
Deductible - this applies to the subject of insurance.
Additional coverage - usually the form is filled first on the construction type box.
Construction - for this area, the information needed includes involved structures such as building area, floors of the home, and rooms.
Building Improvements - these include basic building requirements such as plumbing, roofing, and heat.
Description - distance of buildings, structures, activities, and properties covering all sides of the insured building will be inputted.
Additional Interest - any interested party for the insured property will be placed here.
Additional Premises Information - other details for properties will be placed here.
Signatures - signatures for the producer and the insured will be placed here.
Moving forward, another form needed is the acord 28 of the Evidence of Commercial Property Insurance. It provides information about coverage currently utilized on a policy. An acord 28 sample can be seen below. There are no available filled samples of the full form, but this is the exact form used. The acord 28 fillable, printable pdf form can be found here.
The acord 28 instructions involve filling out the entire page:
Identification Section - general information regarding the producer, named insured, and company and inputted.
Property Information - the location and description of the building and other property items are placed here.
Coverage Information - information regarding coverage such as causes of loss, business income, replacement cost, amount, and calamities are to be filled here.
Additional Interest - similar to acord 140, any interested parties or involved individuals with the insured property will be placed here.
The most reliable way to identify your business individual cost of commercial property insurance is to get a commercial property insurance quote through proper comparison, which you can perform through this page. You can easily compare commercial property insurance quotes from the best companies and find the best business property insurance policy.
As mentioned, various factors affect commercial property insurance cost. They are determined by the level and value of the covered items and properties, construction used, use of the business premises, protection available in the area, and exposure to risks and criminal activity.
Generally, a small business owner may pay $500 per year, and a bigger business can pay up to $500,000 per year. Average businesses range from 1,000 to 3,000 dollars annually depending on the variables identified within their business.
The type of sector where your commercial area is located affects the commercial building insurance cost as well. A table highlighting the differences can be seen below:
|Office||Class A Office - prestigious buildingsClass B Office - an average area with fair to good surroundingsClass C Office - functional space and rent at below-average pricesMedical Office Buildings - speciality sector|
|Retail||Retailers and Restaurants Shopping CentersSingle-Tenant Buildings (ex: Walmart, Target)|
|Industrial||Heavy Manufacturing - machinery needed to produce large amounts of goods and servicesLight assembly - product assembly and storage of goodsBulk Warehouse - large properties which are often centers for distributionFlex Industrial - industrial and office spacesResearch and Development Facilities|
|Multi-family||High-rise - nine or more floorsMid-rise - multi-storey building with an elevator in urban areasGarden-Style - four to six-storey building Manufactured Housing Community - leased ground sites to ownersSpecial Purpose Housing - targets a specific population segment such as student housing or low-income housing|
|Hotel||Limited-Service Full-Service BoutiqueCasinoExtended-stayResort - more extensive amounts of land with various facilities|
|Special Purpose||Amusement parks, churches, and self-storage - real estate owned by commercial real estate investors|
These costs are the amount needed to rebuild your commercial property in the event it is destroyed. It includes the cost required to destroy and remove the previously existing structure and rebuild the commercial property. The market value price of your property may be higher than the rebuild cost as it includes the land in its calculation.
The commercial rebuilding costs for insurance involve factors such as the size of the area, the materials used, the location, and the listing of the building. These are essential factors to consider in the event of rebuilding a commercial property.
Ensuring protection from harm and possible accidents to your business allows for guaranteed success. Make sure to consider all factors needed in determining the best insurance for you and how it can help grow your own business.
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Policy Type: Business Insurance
Company name: Atlas General Insurance
AVOID!!!! Atlas charged us two hundred percent extra following a simple annual audit. When we filed a claim they weren't accessible for reviewing it so we had to cancel the claim!
Matthew Forest Insuranker
Policy Type: Business Insurance
Company name: Atlas General Insurance
Exceptional service! Worked with Gilbert, who was extremely helpful with all of our needs. They have excellent work ethics and are really dedicated to put you first, something that is not easy to find with insurance. We really appreciate it. I don't understand how anyone cannot recommend this agency. Recommended Atlas to my friends and colleagues and they also never experienced any issue. Excellent service.
Brian Artuso Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Ed Francis took care of our claim to our delight due to some incident. Very professional, responsive, knowledgable and patient. GUARD was there when I needed it.
AmTrust's claim handling was very unprofessional. A whole two weeks is the time it took to get a reply, however it was only when asking for supervisors that things started to really move. They denied the claim though and haven't paid for my commercial car repair expenses despite a receipt and proper coverage. Not recommending anyone to buy this product from them.
Business owners stay away from this company!! They do not pay legitimate claims... They hire a company that uses lawyers to deliberately deny all claims. Avoid..