If you are reading this, you probably run a business or own a piece of commercial property. Regardless, it is important that you know everything you possibly can about commercial property insurance.
As a business owner, this will help you mitigate many risks. It will also help you offer financial protection to all your employees.
This protection will also extend to your customers and improve your own livelihood. If this seems to grab your attention, let us continue to discuss six important things you must know about it.
1. What Does A Commercial Property Insurance Cover?
To put it in simple words, it protects your entire property along with all its contents. It also covers any external fixtures you have, including fences and outdoor signs.
This makes it so easy for you to keep your furniture, computers, and documents safe. A properly planned insurance should also protect you from vandalism.
It may not cover damages caused due to earthquakes and floods. Unless you have them mentioned somewhere in the document.
2. What Are The Types Of Commercial Insurance?
Every aspect of your business has its own risk factors. We will highlight the huge number of commercial insurances you must know about.
A commercial property policy protects you against theft, fire, and any form of physical destruction. It can also cover losses due to an increase in business expenses.
General liability covers all bodily injuries that could happen within your premises. Professional liability will save you from losses due to errors in job performance. Also, prefer taking commercial auto insurance to keep your vehicles insured.
3. Benefits Of Casualty Insurance
If there seems to be any form of damage caused by something as simple as a plumbing error, casualty insurance will protect your property along with its contents.
To put things in perspective, imagine having an aquarium in your office. A small calamity caused the glass to crack which eventually killed all your fishes. Having casualty insurance will not just cover the glass.
Nevertheless, it will also allow you to cover the loss of your fishes. If the leaking water damages your office, you can also extend your insurance to cover it.
4. Does Commercial Property Insurance Cover Thefts?
Yes. However, here we will talk about the important exception you should know about. The property that stolen should have been inside your premises for insurance to cover it.
If the stolen item was farther than 100 feet from your property, you cannot claim insurance. This is because it no longer has the status of “business personal property”.
Instead, it is renamed as “inland marine” which needs separate insurance on its own. This will even protect your belongings when you are moving them from one property to the other.
If you want to know more about how a Commercial Property Insurance can protect you from theft, consider reading this: How Can A Commercial Property Insurance Protect You From Theft: A Complete Run-Through
5. How Much Should You Spend To Insure A Commercial Building?
There are several factors that could influence the cost of commercial property insurance. The value of your property along with all our assets plays a major role here.
Your cost of insurance can also vary based on the risk factors involved. This includes the quality of the construction and materials used.
For example, if you have used fire-resistant materials, your premium may reduce. The location of your property and the number of occupants you have currently could make the cost go up.
6. Tax-Deductions
Most business owners shy away from getting commercial property insurance without knowing that it is tax-deductible.
This expense will later may help you save on taxes. You can reduce the amount you pay for every insurance option from your overall tax amount.
However, various factors will determine the percentage of deduction. This will still apply to you if you have recently rented out your property.
Conclusion
As a business owner, it is always wise to expect bad things to happen. Commercial property insurance will allow you to stay prepared for the coming disasters. This can offer you more than just peace of mind.
It will help save all your hard-earned money without having to pay for lawsuits and rebuilding expenses.
A COI tracking software can take a huge burden off your shoulder and help you automate the entire process of managing insurances for your commercial property along with all its belongings.
Schedule a free demonstration with our experts. In addition, we will show you exactly how our software can save you hundreds of hours and thousands of dollars. Done by mitigating the potential risks involved in Commercial Insurance mismanagement.