Common Benefits of Commercial Property Insurance

The only things that we know for sure about life is that everything changes and life can be unpredictable.

The things that happen to you are, in fact, happening at random. This means that anything could also happen to your commercial property.

For example, there is always the risk of fire or natural disaster that could happen over night. Or maybe you’re on your yearly vacation when you see on the news that a hurricane is headed straight for your office headquarters. The point is, you never know what could happen. And even if there are obvious benefits to being a commercial property owner, there will always be risks involved as well.

Because of these risks, many business owners opt to rent a space rather than take the risk of owning it. This means that if you have what it takes to own a commercial property, there will be no shortage of businesses to rent it out to and you can reap serious rewards.

What Is Commercial Property Insurance?

Commercial property insurance gives your commercial building coverage, as well as its contents, in most cases. It can also provide coverage for property outside of the building.

Here is an example of things that commercial property can cover:

• The structure of your commercial building
• Office or manufacturing equipment
• Furniture
• Fixtures
• Tools
• Machinery
• Signs
• Fencing
• Landscaping such as gardens, trees and shrubs

Who Needs Commercial Property Insurance?

• Contractors and skilled tradespeople like electricians, home builders or welders.
• Retail small businesses like bakeries, florists, or book stores.
• Professional services like graphic designers, copywriters, or financial advisors.

If you’ve experienced damage or loss to your commercial property, the right commercial property policy will be able to help you with the repair or replacement costs, so you can get your business back up and running quickly.

What Are The Benefits Of Commercial Property Insurance?

Reduce The Risk Of Owning A Commercial Property

You can lessen the risk of owning a commercial property by purchasing an insurance policy. All buildings are at risk of catching fire, suffering damage from natural disasters or vandalism and theft. An insurance policy can help you by giving you coverage and protecting you from having to pay for these damages out of pocket. This includes any lawsuits and rebuilding and replacement costs.

Speedy Recovery Process After A Loss

The longer you take to get back on your feet after a loss or situation, the bigger the hit your business will take. If there is any damage done to your commercial property, then having the right commercial insurance policy will help you deal with your problems quickly and efficiently so that you can get back on your feet. This mitigates any long-term effects the loss might have incurred if you didn’t have commercial property insurance.

Repair and Replacement Costs

If your commercial business suffers damage or a loss to your commercial property and it is covered under your policy, your insurer will take care of the costs associated with repairing or replacing it. For example, if your property suffers vandalism and you cannot continue business, your policy will help you get it removed quickly so that you can resume business.

If you suffer a loss to your property that is too extensive to be repaired, then your commercial property insurance will help you with replacement costs by either covering them or keeping them as low as possible.

Business Interruption Coverage

Damages to your commercial property will most likely interrupt the operations of your business and you most likely won’t be able to open your business right away until everything is fixed. If you have the right commercial property policy, it will be able to alleviate the loss of income you might incur in order to keep up with your bills, payroll and other business-related expenses until you are able to continue your businesses’ regular operations.

Unexpected Losses

Despite being proactive and prepared for the future, you can’t control what happens and you can’t predict what happens to your business. Natural disasters like hail storms, flooding or hurricanes can cause sudden and unexpected damage to your commercial property and contents. Your commercial property policy can cover these losses that are a result of forces out of your control.

What Exactly Is Covered By Commercial Property Insurance?

Your commercial property insurance will protect you when you rent out your property to third-party tenants. These tenants are legally allowed to rent the property but as its owner, you are responsible for any situations if things go wrong.

Commercial property insurance should be seen as something essential for all commercial landlords, but it is often overlooked. Below are some of the specific protections offered:

• Indemnity period: this refers to the time period that is specified in your policy, in which your insurance benefits are payable and during which you must make your claims after a loss. It will begin from the date a loss has occurred. You should always verify the indemnity period specified in your policy because claim payments will end at the end of the indemnity period.

• Damage from natural disasters: again, in the event your commercial property suffers from damages due to a natural disaster, you are responsible for the removal of debris, building demolition and rebuilding costs. If you have commercial property insurance, the cost minus your deductible will be covered by the insurer. If not, you will need to pay out of pocket.

• Tenant lawsuits: there are some commercial property insurance policies, which can protect you from tenant lawsuits, or if you need to sue a tenant who has caused damage to the property purposely or who hasn’t paid their rent.

The coverage your commercial property insurance covers will vary from policy to policy, so be sure to read the fine print so that you can find the best insurance option for you and your business.

Author Bio:

Rhett Desormeaux is a content writer currently working with BreezeMaxWeb. He’s a passionate writer and loves studying ancient history, especially Bronze Age civilizations.