Commercial Property Insurance

Anyone whose business property has suffered damage because of the weather, theft, loss, etc., should consider this type of insurance. In fact, anyone who operates or is planning on starting their own business should invest in commercial property insurance to protect their assets in the event of unforeseen circumstances.

Commercial property insurance can help safeguard your business assets if you run your company from a physical site, such as an office. Some business owners believe that having commercial property insurance is essential in specific sectors – for instance, compared to other firms, brick-and-mortar retailers often keep more goods on-site. Therefore, commercial property insurance is crucial due to the risk of inventory damage or theft.

Whether or not Commercial Property Insurance is required depends on your state, local or industry. However, it is recommended for the following reasons:

• It covers property damage costs in the event of an accident. Your commercial property coverage will either cover the replacement cost of the building or asset or the necessary repairs.
• Business interruption coverage can help you stay afloat if a covered catastrophe forces you to temporarily close your doors by covering lost business income, moving and relocation expenses, and employee wages.
• Before agreeing to let you lease a commercial space, a landlord could require that you have commercial property insurance. Commercial leases often include this clause.
• Before granting your loan, many banks and mortgage lenders could demand proof of commercial property insurance. Similar to this, the Small Business Administration (SBA) mandates that companies have commercial insurance coverage on any properties pledged as security for loans.

Commercial property insurance costs vary depending on a wide range of factors, such as:

• The total value of the business property
• The type of work you do
• History of previous claims
• The number of employees working for you
• Previous work experience
• Your set limits
• The location of your business property

If you would like a more accurate quote, feel free to reach out to the experienced professionals at S Philips Surety & Insurance Services. We’ll help you find the most suitable commercial property insurance policy for you.

While commercial property insurance is vital, there are other types of coverage you should consider as a business owner to protect your company against other types of risks. A few other California business insurance coverage options you should consider include:

• Workers’ Compensation Insurance
• General Liability Insurance
• Professional Liability Insurance
• Commercial Auto Insurance

it depends on the policy. Business property insurance from S Philips Surety & Insurance Services can cover fires and water damage caused by heavy rainstorms or hurricanes. However, always make sure to read your policy thoroughly to determine what you’re covered against. If you have specific requirements, make sure to discuss them with our underwriters during the process.

A few of the items most commercial property policies cover include:

• Flooring
• Equipment
• Inventory
• Fixtures
• Furniture
• Business income
• Broken windows
• Structural damage

An insurance company often values a commercial building in one of three ways, namely:

• Actual cash value: This entails the cost of replacement less the relevant depreciation.
• Fair market value: The value of the item if it were to be sold in the market today at arm’s length between willing parties.
• Replacement cost: How much it would cost to replace the asset with the same or a similar item.