Commercial Property Insurance

Why Business Owners Need Commercial Property Insurance

The commercial property insurance market becomes more restrictive each year for commercial real estate (CRE) organizations. Premiums rise, carriers restrict coverage and the number of property insurers that want to write CRE exposures shrinks. Finding insurance brokers who specialize in commercial real estate is more important than ever when choosing your CRE property insurance coverage.

Let’s review some important considerations in commercial property insurance.

What is Commercial Property Insurance?

Whether you own or lease your building, you have commercial property exposures at risk. Here are some of the loss exposures you face as a business owner.

Damage to your building
Losses to your business personal property
Damage to your building’s structures
- Boilers and electrical systems
- Materials in warehouses
- Stock and inventory
- Fences and signs
- Appliances and building improvements
- Security systems
Robbery and theft
- Robbery and burglary
- Employee theft
Damage to premises you lease or occupy temporarily
Reduced business income after a covered loss

Do You Need Crime Coverage?

While we trust our employees, events in our employees’ lives can change their financial situations. Even a highly trusted, long-term employee can steal.

Some types of employee theft include the following.

Embezzlement
Fraudulent payments
Information theft, including valuable intellectual property, such as customer lists and patent/trademark information
Larceny
Shrinkage
Skimming

Without the proper coverage, your profitability – perhaps even your company’s viability – may be at risk. A carefully crafted crime policy can offer peace of mind in today’s increasingly uncertain world.

What Types of Claims Does Commercial Property Insurance Cover?

Fire, water and wind

With today’s erratic weather patterns and with commercial buildings aging, a variety of elements can damage your buildings or harm your business personal property. If you damage property you lease, your policy can supply coverage for certain risks such as fire. A well-crafted CPP can help provide broad coverage against these and other types of common losses.

Flood and earthquake

Excluded under your CPP or a businessowners policy, you may face an elevated flood risk. Both the National Flood Insurance Program and private carriers offer flood insurance. Earthquakes, too, can damage your building. According to the National Association of Insurance Commissioners, 90% of the US population lives in areas prone to earthquakes. Earthquake coverage may be available from your property insurer by endorsement, or from a local earthquake authority.

Business income

After a covered loss, you may be unable to quickly resume operations. If you can’t reopen without relocating, you may face extra costs such as increased utility payments, payroll and other expenses to get your business operational again as quickly as possible. Business income insurance can help smooth income reductions and replace lost income after a covered claim. Here are some of the continuing costs that could occur after such a loss.

Mortgage payments or lease payments
Wages
Loan payments

Few business owners have the cash on hand to continue operating after a loss significantly reduces their income. Well-crafted business income coverage can keep your business afloat after a covered loss.

Tenant improvements and betterments

When you occupy a leased building, you often make improvements to that space. This can include office buildouts, improved heating and ventilation systems, fire suppression systems and more. The right commercial property coverage can protect these improvements after a loss.

Employee theft

You can find coverage for losses from employee theft or embezzlement through the proper endorsements or through a crime insurance policy. One study found the average small- and mid-sized business loss from an employee theft was almost $300,000. Few businesses can withstand that level of loss.

How it Works

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Simply create your quote profile and answer some basic questions. We’ll reach out if we need more information.

Review Quotes

We’ll provide quotes from several well-respected insurers eager to do business with you.

Enjoy Peace of Mind

Once we complete your coverage, you’ll have the peace of mind you need to manage your business.

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Commercial Property Insurance Frequently Asked Questions

What is commercial property insurance?

A CPP policy can protect your valuable assets and offer peace-of-mind coverage from a variety of risks. If you lease property, the property owner will require you to show proof of property insurance before you occupy the premises.
Is commercial property insurance expensive?

Your premium will depend on your loss exposures. Underwriters review your account using this acronym – COPE. The C in COPE stands for construction. Is your building frame, masonry, or built with other fire-resistive materials? The O in COPE stands for occupancy, how you use your building. The contents in your building and the type of work you perform in your building define its occupancy. For commercial real estate owners and managers, underwriters generally do not consider this occupancy hazardous. This means your insurance rate will be lower than a manufacturing occupancy, for example. The P in COPE stands for protection. How do you safeguard your buildings against loss? Are your building sprinklered? Do you have ready access to local fire departments? The better protected your building, the lower your rate. The E in COPE stands for exposure. This refers to the external hazards typical in your building locale. If you’re located in a tornado corridor, for example, your rates will be higher than those of a building owner in New Mexico. Being situated near a hazardous business can increase your rate.

In today’s property insurance market, your premium can vary significantly. A well-crafted coverage analysis presented to several insurers can help reduce your rate and provide broad coverage.
Why do I need commercial property coverage? I am just a sole proprietor and I only lease my space.

With climate risks and civil unrest on the rise in the US, the commercial property insurance outlook has become more difficult to manage. Your property policy is too important to leave to chance. Consider a quote from a brokerage that specializes in commercial real estate insurance risks to reduce your risks and your premiums. We have access to many insurers who understand the hazards commercial property owners and managers face.

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