What to Know About Commercial Property Insurance—Part 1

Hello, and welcome back. In our recent post, we looked at some of the reasons to contact Forerunner Insurance Group for a commercial auto insurance quote. Today, we would like to shift the focus to commercial property insurance, which is another aspect of protecting your business, your assets, and your employees. Let’s begin looking at some of the things you should know about commercial property insurance and the benefits of commercial coverage. Please continue reading below to learn more.

What Does Commercial Property Insurance Cover?

Commercial property insurance protects your business, safeguarding it from losses related to the structure, contents, and other assets that your company owns. If an emergency situation should occur which causes damages to your building, property, or its contents, commercial property coverage pays for these losses. More specifically, a commercial property insurance policy may cover:

  • The building, structure, or warehouse you own.
  • Furnishings within the building including furniture, appliances, and decor.
  • Fixtures that have a permanent connection to the building or structure such as light fixtures, security alarm systems, television aerials and satellite dishes, central-heating boilers and radiators, plumbing installations, fixed furniture like benches and shelves, and so much more.  
  • Equipment such as tools, mechanical equipment, computers, elevators, general purpose lighting, water fountains, HVAC systems, exit lights, water fountains, general door hardware, and more.
  • Inventory or finished goods accumulated by a business such as raw materials, work in progress, finished goods, and merchandise.
  • Supplies and materials—tangible property—that is used or consumed in business operations in the office, warehouse, retail space, and so on. These include supplies used to run copiers, printers, or those used for making, packing, and shipping products either manufactured or sold.
  • Specialized or expensive gear or equipment which may need to be scheduled separately from the above categories.  

Protect A Property from Severe Weather

Standard property insurance may safeguard a building and property from such natural occurrences such as wind, lightning, and hail, all of which are common here in Florida. A good insurance policy can help a business recover from broken windows damaged during a hail or windstorm, or even replace a damaged roof.

While most commercial insurance coverage is often expansive in what it protects, every policy does have exclusions, so it’s best to discuss these with your agent so that you have a solid understanding of what is covered and what is not. While the damage caused by most natural weather events such as wind or lightning is covered, losses caused by other natural disasters may not be covered. Take flood coverage, for instance; this is often excluded from general commercial insurance and, if your commercial property is located in a flood-prone area, a special policy may be needed to protect your building from flood damage. Additionally, hurricane and earthquake coverage may also require a special policy.

Protect Company Property from Theft

A good commercial policy will protect your business from losses as a result of theft or vandalism. Thieves frequently target merchant and retail-based businesses, especially those that carry electronics, guns and ammo, and jewelry. According to one recent report, inventory shrink in America rose to almost $49 billion in 2016 as a result of shoplifting and employee theft. This same report claims that on average, shoplifting accounted for most of these losses, causing an average of almost $800 per incident, while employee theft accounted for a whopping $1,800 per incident. Commercial policies can safeguard against such losses and can help businesses recover from these costly incidents. Additionally, commercial properties and large buildings are prone to vandalism that includes graffiti on walls, small structures, and equipment like dumpsters. On top of the unsightly physical damage vandals cause, recovering from vandalism is expensive, so having a good commercial property policy can really help with recovery.

Contact Forerunner Insurance

When it comes to your business, you’ll want to protect your property, contents, assets, and most importantly, the people. Rather than thinking of commercial insurance as an added business expense, look at it as a benefit that protects you and your business. If you are planning to open a new business here in Florida and want an insurance quote, or would like to compare your current commercial policy to others that may be more affordable and offer better protection, call our team at Forerunner Insurance Group for a free quote. You can also click here to fill out our online form. We will find the best policy that matches the specific needs of your business that comes at an affordable price.  

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