What Is Commercial Property Insurance?

Posted by  On May 17, 2021
What Is Commercial Property Insurance?

There are so many different types of insurance available these days, from the familiar ones like home and car insurance to newer ones like critical illness insurance. You may have made sure you are adequately insured in your personal life, but have you taken care of your business insurance needs?

In this article, we’ll explain to you:

  • What commercial property insurance is and how to know if you need it.
  • What commercial property insurance does and doesn’t cover.
  • What factors impact the cost of your commercial property insurance.

At Archway Insurance, we’re here for all of your commercial property insurance needs. We can offer you a variety of different types of coverage and design a personalized commercial insurance package just for you.

What is commercial property insurance and why would I need it?

Commercial property insurance is similar to home insurance, except that it is geared towards a business or commercial property instead of a private dwelling. Commercial property insurance can help protect your business from the financial impact of any of the following happening to your place of business:

  • Fire
  • Burst pipes
  • Theft or vandalism
  • Storms
  • Explosions

Commercial property insurance is good both for any physical loss or damage to your commercial property, as well as the physical contents (e.g., computers) inside your commercial property, whether they simply need to be repaired or even if they need to be entirely replaced due to an unexpected event.

There are several situations in which you would need commercial property insurance. If any of the following apply to you, then commercial property insurance is critical:

  • You own or lease any kind of commercial building or space, such as a warehouse or an office.
  • You have machinery, equipment, or inventory in your commercial space.
  • You have electronics, which include anything from laptops to desktops and tablets that you use for business purposes.

What does commercial property insurance cover?

The purpose of commercial property insurance is to cover not only your commercial building itself, but also the contents inside it, as well as some structures that are outside it. These are the main things that commercial property insurance covers in addition to your building itself:

  • Furniture and equipment, including computers
  • Exterior signs, as well as fences and landscaping
  • Important documents
  • Inventory
  • Other people’s property

For example, let’s say there’s a fire in your warehouse and both your inventory and some computer equipment are damaged. Your commercial property insurance will cover the cost to replace all of the items damaged by the fire as long as it’s covered under your policy.

There are two different types of commercial property insurance you can choose from:

  • Named Perils. With this type of commercial property insurance, you will be compensated for any losses that are explicitly specified in your policy.
  • All Risk. This type of commercial property insurance protects you from any incident that is not specifically excluded from your policy.

At Archway Insurance, we’d be happy to sit with you and discuss both options to determine what type of commercial property insurance is best for you. We can also explain what commercial property insurance doesn’t cover, such as employee theft.

What factors will impact the cost of my commercial property insurance?

Just like with house insurance, one of the biggest factors that will impact the cost of your commercial property insurance is the value of your commercial property. In addition, the following factors, which can increase or reduce risk, will also impact the cost of your commercial property insurance:

  • Is the location that your building is in prone to storms and other natural disasters?
  • What kind of materials is your building constructed from? How up-to-date are your wiring, plumbing, and HVAC?
  • What type of industry is your commercial property for? Places that deal with a lot of cash or contain valuable inventory can be considered high risk.
  • Does your property have a working fire alarm and security system? This can help reduce how risky your commercial property is considered.

How can Archway Insurance help me with commercial property insurance?

At Archway Insurance, we’re committed to making sure you get the right kind of commercial property insurance at a price that works for you. We can discuss all of the following with you:

  • The purpose of commercial insurance and what is most commonly covered by it.
  • The differences between All Risk vs. Named Perils commercial insurance. We can help you figure which type is best for you.
  • The types of enhanced commercial property insurance customizations we can offer you, including:
    • Business interruption, which will cover everything from lost revenue due to physical damage from a fire or flood damages to providing compensation for expenses like rent and utilities while repairs are being made.
    • Equipment breakdown: commercial property insurance can cover the cost of equipment repairs or replacement so that you can return to business as usual as fast as possible.
    • Sewer backup, which will cover water damage to your building in case of an event like a sewage backup or overflow.
    • Earthquake and flood protection: this will cover repair costs for buildings and equipment damage by floods or earthquakes.

We can talk to you about all your different commercial property insurance options and put together a package that works for you!

Commercial Property Insurance is Vital to the Well-Being of Your Business

We know that you’ve worked hard to build your business. Therefore, it’s vital to you and your business that you are properly protected, which is why commercial property insurance is so important. In the above, we’ve explained:

  • What commercial property insurance is and how to know if you should have it.
  • What is and isn’t covered by commercial property insurance.
  • What risk factors can increase or decrease the costs of your commercial property insurance.

We will work with major insurance providers to put together a customized commercial property insurance policy that works for you at a price you can afford.

Contact Us!

Reach out to Archway Insurance today to learn more about commercial property insurance and why it can be a lifeline if anything happens to your business. You can call us at 1-833-544-0475 or contact us online.

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