6 Reasons Why You Need Commercial Property Insurance | Archway Insurance

6 Reasons Why You Need Commercial Property Insurance

Posted by  On March 29, 2021
Reasons Why You Need Commercial Property Insurance

Your commercial property is more than just bricks and mortar. It represents all the hard work, blood, sweat and tears you put in to get your business to the point where you were able to open a physical store, office space or commercial warehouse. Whether you’re just in the beginning stages of your startup or you own an established business – it’s important to have policies in place which protect your investment.

Commercial property insurance doesn’t just cover the structure of the building you use but it also covers a long list of other things such as the physical assets found inside your building, including inventory, electronics and other business-related equipment. It also covers exterior fixtures like signage, glass, fencing, landscaping etc.

A commercial property policy will come into operation if your property suffers from an insured peril or should someone slip and fall while visiting your establishment.

Who needs commercial property insurance?

Any business owner who wants to protect their valuable assets needs commercial property insurance. It is an especially important type of insurance to have if you are a small business or startup, as you may lack the cash required to deal with an emergency while still keeping your business running. In many instances, liability and other professional coverages may even be a legal requirement to operate!

Benefits of Commercial Property Insurance

1. Get back on your feet faster

Suffering a loss to your business can be a nightmarish experience, leaving you unable to keep it running. The longer it takes for you to get back on your feet, the worse the situation can become.

Suppose your business suffers from damage done by an insured peril. In that case, your commercial property policy can help shorten the recovery process after a loss and get your business back up and running faster. This will help you mitigate any long-term effects that might occur from the loss. Your downtime will be limited, and you can maintain your business’ continuity without a hiccup, as well as protect your business’ reputation with your customers.

2. Protection during a disaster

Natural disasters can strike at any moment, whether we like them or not. You can make every effort to protect yourself and your business, but Mother Nature will do her thing. When natural disasters occur, they can cause some serious damage that’s expensive to repair. Fires, cold winter snaps, tropical storms, and flooding are examples of perils you can insure your property for.

3. Help with repair costs

If your business suffers damage from an insured peril, then your commercial property policy will cover the repair costs associated with it so you can get back in business quickly. For example, suppose your commercial property is vandalized, and it’s preventing customers from entering the building. In that case, your commercial insurance policy can help you get the repairs done and keep the costs to your business to a minimum.

4. Help with replacement costs

Similarly, suppose your business equipment breaks down unexpectedly due to unfortunate circumstances which are covered in your policy. In that case, your insurance provider will pay to have it replaced if repairs are not feasible. This will help you keep your business costs low as well as protect your bottom line.

5. Business interruption coverage

If your business needs to close after an insured event, for example, if it needs major repairs, then you can receive funds to keep your business running through business interruption insurance. This will help you mitigate costs associated with the loss of income, such as keeping up with bills, payroll and other expenses until things return to normal.

6. Peace of mind

Commercial property insurance offers you financial security through any major emergency your business might face. This can give you peace of mind knowing that whatever tough times might be ahead, you’ll be able to get to the other side.

Factors That Affect Your Commercial Property Insurance

Insurance companies take many factors into consideration when designing your commercial property policy. These factors will also determine the premium you will pay for your policy. A few of these factors include:

  • Location

    Where your business is located has a big impact on the type of coverage you will require and also affect how much it will cost. For example, if you work in an area that is prone to floods or wildfire, then your coverage, as well as your premium, will reflect this.

  • Replacement Costs

    The total amount of money it would cost to replace your commercial space and its contents helps to determine the level of coverage that you need and how much your premium will cost.

  • Property Age

    As your commercial building gets older, the more likely it is to suffer from damage. Newer buildings will typically have lower insurance premiums compared to older buildings. However, if you renovate or make enhancements to an older building, you should let your insurance provider know how this can affect your coverage and premium.

  • Plumbing

    Because water damage is a prevalent cause of insurance claims, your insurance provider will want to know all of the details of your plumbing when calculating your insurance premiums.

These factors, and many other factors, determine your commercial property insurance coverage and premiums. You can do several things as a business owner to help lower your premiums if you are getting quotes that are too high—for example, replacing an old roof, improving building security or upgrading your plumbing or electrical systems.

To learn more about commercial property insurance, call Archway Insurance at 1-833-536-0529 or contact us here for all your insurance needs in New Brunswick, Nova Scotia and Prince Edward Island.

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