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Commercial Property Insurance

Commercial property insurance is the most important step that business owners need to take in order to ensure financial protection for their company, employees, and customers. In this article, we’ll explain what it is exactly, give you an overview of the most common types of policies, and show you why hiring an agent can help you reduce financial risks.


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What Is Commercial Property Insurance?

Commercial property insurance provides companies with coverage for office space, computers, equipment, inventory, and other types of assets. This helps companies protect their business from losses in cases of fire, robbery, and natural disasters. Having commercial property insurance is of vital importance for any company because they repair and replacement of business assets has a high cost and, in some cases, it can even put you out of business. 

The cost of commercial property insurance depends on the value of your business and assets. The price is determined by several factors, including the location and age of the property, the size of business premises, the value of equipment, availability of fireproof materials, and the types of hazards covered.

What Does Commercial Property Insurance Cover?

Keep in mind that commercial property insurance doesn’t usually cover all risks. For example, floods and earthquakes are rarely part of the policy. Most commercial property insurance covers damage on everything inside and outside your company’s property, including equipment, computers, inventory, documents, furniture, exterior parts of the property, and fence.

The Agent’s Role in Commercial Property Insurance

Having commercial property insurance is key to ensuring financial protection, however, just getting insurance won’t cut it, as every company offers different coverages. For example, let’s say you have commercial property insurance and your company’s building is damaged by a natural disaster – if natural disasters are not part of your policy, you won’t get funds and it would be as if you don’t have commercial property insurance at all. 

To avoid such mistakes, business owners hire agents that can help them choose the right coverage for their business. A good agent would be able to find an appropriate policy with a reasonable price that would have your business covered on all fronts. The agent’s role is to assume all risks that can happen to your property and find the exact policy that would secure your business in case of damage or loss.

Commercial Tennant Ebook

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Types of Commercial Property Grants

There are many types of commercial property grants offered by insurance companies and it’s vital for business owners to understand the differences between each type so they can choose the right policy for them. 

Here are the main types of commercial property insurances available to businesses: 

  • Commercial General Liability

Commercial General Liability (CGL) is a type of policy that protects business owners from bodily injuries and property damage that are caused by the company’s products, operations, or employees. It’s considered to be an “all-risks” type of insurance that offers broad coverage. However, CGL usually exudes specific risks such as pollution, liquor, and automobile liability.

  • Property Insurance

Property insurance is an umbrella term for a number of policies that provide owners with property protection coverage. In case of damage, break-in, or natural disaster, the owners get financial reimbursement. Flood insurance, earthquake insurance, and homeowner’s insurance are all types of policies that owners can obtain to secure their property.

  • Business Owner Policy

Business Owner Policy (BOP) offers a variety of insurance products all offered in one insurance package. These packages include protection for the whole property and liability risks. Plus, companies can get discounts and additional coverage such as crime or spoilage of merchandise. To get a BOP policy, a business must meet certain criteria. The insurance company evaluates the business revenue, class of business, and location.

  • Workers Compensation Insurance

Workers compensation insurance is a type of policy that provides employees with financial reimbursement if they are injured in their workplaces. This type of insurance covers medical expenses, lost wages, and rehabilitation costs. In the event of death, families get death benefits.

  • Professional Liability Insurance

Professional Liability Insurance (PLI) is used by companies and professionals in different fields to protect against claims of negligence. Professionals need this insurance because most liability insurances don’t protect against claims of negligence and malpractice.

  • Auto Insurance

Most vehicle owners have auto insurance policies. In case the vehicle is damaged due to an accident, theft, or a natural disaster, the owner gets financial reimbursement.

  • Cyber Liability

Cyber liability insurance protects business owners from financial losses that can occur due to data breaches and in case the company is storing sensitive and personal data. In order to avoid costs associated with data breaches, business owners obtain a cyber liability policy. Cyber liability offers first-party and third-party coverages.

If you have any questions concerning your commercial property insurance, don’t hesitate to contact our team at KZB Real Estate.


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