Protect Your Business Property with Commercial Property Insurance

Commercial property insurance protects any commercial property from burst pipes, explosions, fires, natural disasters, storms, theft, and vandalism.

A variety of businesses, including manufacturers, retailers, service-oriented industries, and not-for-profit organizations carry commercial property insurance. Generally bundled with other forms of insurance, such as commercial general liability insurance, commercial property insurance is recommended to any business that leases or owns office space, manufactures products, manages inventory, leases equipment or maintains the property of others.

Why Do You Need Commercial Property Insurance?

Commercial property insurance protects all property vital to daily business operations, extending not only to buildings, stores, and offices but also to equipment, furniture, inventory, and any other physical asset of importance.

Reviewed Property Risk Characteristics

1. Construction

• Buildings constructed with potentially combustible materials will have high premiums, while those built with fire-resistant materials could merit a discount.
• Additions to existing structures might affect fire ratings. Talk to an insurance agent before remodeling.

2. Occupancy

• How the building is being used.
• Whether the building is owner-occupant or renter-occupied. In a building with multiple tenants, one hazardous occupant will negatively affect the fire rating of the entire building.
• The number of families for which the building is designed.
• An office building will likely rate better than a restaurant or auto repair shop.

3. Protection

• The quality of the responding fire department and the building’s distance to the nearest fire station or hydrant.
• Adequacy of water pressure.
• Water supply.

4. Exposure Risks

• What is located near the property?

What’s Not Covered?

When assembling a commercial property insurance plan there are a range of perils and options to include or exclude from the policy. Discuss detailed options with your broker in order to determine the most appropriate coverage.

How Much Does Commercial Property Insurance Cost?

The cost of commercial property insurance varies depending on property elements to be insured, a building’s protective safeguards and the level of desired coverage.

Other factors are considered when determining the cost of commercial property insurance, depending on how they increase or decrease risk levels. For instance, if a building was constructed using high-quality, fire-resistant materials, the cost would be less. If a building is equipped with modern sprinkler systems, alarm systems, and other risk-decreasing protections, rates would decrease.

Factors Impacting the Cost of a Commercial Property Insurance Policy

• Geography: Location, land value, local crime rates, and the presence of natural disasters.
• Safety
• COPE Data: Cope is an acronym that stands for the four property risk characteristics – Construction, Occupancy, Protection, and Exposure.
• The current state of a building and its equipment.

There may be available insurance coverage offered by various insurance companies like flood insurance, tornado insurance, and fire insurance. Although there might be insurance policies purchased individually, it is strongly suggested to combine your insurance packages into a bundle.

Southwest Florida’s Leader in Commercial Property Insurance