A commercial property insurance policy helps protect your business property, equipment, tools, and inventory against repairs or damages resulting from natural disasters, fire, theft, vandalism, etc. Despite the type of business you run, having commercial property insurance is a must to have you covered during unexpected events. While buying property insurance, people mostly think about its cost. The commercial property insurance cost is not constant and varies for every business depending on their specific needs. Let us discuss them.
Old buildings are easily susceptible to damage compared to new buildings, so they may cost more to insure.
Having safety measures in your offices, such as a sprinkler system, smoke detector, and fire alarm, or being near the fire station will lower your risk of damages, costing less to insure.
Your property insurance cost will be decided depending on the coverage you have. For example, replacement value coverage covers all costs of reconstruction, hence costs more. Contrarily, actual cash value coverage costs less, as it only pays for the building's depreciated value during rebuilding.
The risk level of your business can increase if you have more occupants in your office. This can impact your insurance premium, where the premiums may rise significantly.
If your business is located in a high-crime area, the risk of theft will be more, so you will have to pay more for insurance.
The insurance amount of your property (the maximum amount your insurance provider may pay for a covered loss) will determine how much you have to pay. The higher the amount your property is insured for, the higher your premiums will be.
It is the amount you pay out of pocket for a claim. Having higher deductibles will decrease your premiums. Despite these factors influencing the cost, combining commercial property insurance with other policies, such as a business owner's policy, will help you save on it.
Almost every business, from grocery stores to construction firms, bars, and restaurants, whether owning or renting the business space, likely needs a property insurance policy to cover the damage or theft of the business assets. Mostly, home-based business owners say they have renters and homeowners policies, so they may not need commercial property insurance. However, such policies don't cover losses to computers, equipment, or buildings used for commercial purposes.
Yes! Without commercial property coverage, you have to pay for the loss or damage to your building and its contents out of pocket, which may significantly impact your business operation, especially if you are a start-up. Your commercial property and its contents are not just expensive but are also mandatory for the smooth operation of your business. Undoubtedly, it is vital to secure them with adequate commercial property insurance coverage.
If you are looking for all-inclusive commercial property insurance, contact our insurance professionals today here at Bema Insurance. We will customize your property insurance with the right coverages that protect your business at all times and against every risk.
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