COMMERCIAL PROPERTY INSURANCE
COMMERCIAL PROPERTY INSURANCE WILL KEEP YOUR CLIENTS DREAMS FROM GOING UP IN SMOKE...
Most clients take commercial property insurance for granted, but how well prepared are they to handle the damage a fire, flooding, or vandalism brings?
The unexpected does happen. Fire, water damage from broken pipes, the havoc of a storm, even vandalism can hurt a facility, slow workflow, and stop production. Commercial Property Insurance protects against damage to a business’ buildings and their contents and the everyday disruptions to efficiency and progress that worst case scenarios entail.
WHAT DOES COMMERCIAL PROPERTY INSURANCE COVER?
Commercial Property insurance offers broad coverage for a wide variety of property claims. Commercial property insurance protects buildings and their contents, including computers, office equipment, furniture, artwork, and all of your clients business personal property—whether it is owned or leased—if it is damaged by fire, smoke, theft, vandalism, weather, or certain other covered perils. Some of the typical perils and how a Commercial Property policy may respond are below:
BURGLARY AND THEFT
Burglary and theft are two of the most common business property insurance claims. A typical commercial property policy covers most burglary or theft claims.
WATER DAMAGE AND FREEZING
Water damage can be caused by floods, hurricanes, burst pipes, or simple leaky toilets. Like your clients homes, their business is susceptible to numerous kinds of water damage, not all of which are included in their commercial property insurance. There is no standard for water damage coverage; you will need to carefully go over this with all the businesses that you sell Commercial Property Insurance to.
WIND AND HAIL DAMAGE
Wind and hail damage are typically covered claims on a commercial property policy. If your client are located in certain coastal areas, however, wind damage may be excluded from their policy, but you can purchase a wind endorsement which will most likely have a separate deductible.
Fire is one of the most costly Commercial Property Insurance claims, and is covered under a commercial property policy.
Property damage caused by earthquakes is not covered under most standard Commercial Property policies, but you can purchase special earthquake coverage for your clients in areas where earthquakes are common.
Floods cause major, costly damage to businesses every year. From 2010 to 2014, the average commercial flood claim was $89,000, according to floodsmart.gov, the official website of the National Flood Insurance Program (NFIP). At least 25% of businesses that experience flood damage close permanently. In almost all cases Commercial Property coverage excludes flood damage. Instead, your clients can purchase commercial flood insurance from the NFIP, which was created by the federal government to offer flood insurance to homeowners and businesses.
WHAT ARE SOME OTHER COVERAGES MY CLIENTS CAN ADD TO THEIR COMMERCIAL PROPERTY INSURANCE?
EQUIPMENT BREAKDOWNEquipment breakdown can have a serious effect on your clients bottom line. For example, if they have an equipment failure in their kitchen, it can affect their restaurant and room service revenue. A failure of their computer system can cause lost reservations and angry customers. Equipment breakdown coverage will provide funds to repair faulty equipment and to make up for lost income that resulted from breakdown.
BUSINESS INTERRUPTION COVERAGEIf a covered cause of loss forces your clients to temporarily close for repairs, or impassable roads keep their customers away, they can rely on business interruption coverage to provide them with sufficient income to pay their monthly expenses and employee salaries. This coverage is typically limited to one year.
This coverage protects your clients from losses created by customer or employee theft. If an employee acts illegally while at work, this coverage will repay your clients for their loss.
FOOD SPOILAGEIf a power outage or equipment breakdown causes your clients food stock to go bad, this coverage will compensate them for the lost or spoiled food.
Utility interruption coverage provides compensation for any losses accrued due to a sustained utility outage.