Insuring Commercial Real Estate

The complexity of commercial property insurance coverage often leaves business owner’s scratching their heads over the cost of premiums and what is included. Regardless of the property location or the size of the structure it contains, having adequate insurance is an investment you can’t afford to be without.

What It Covers

Some business owners find a commercial property endorsement contained within their business owner’s policy, but most often a separate policy is needed for more comprehensive coverage. Most commonly, commercial policies will cover the company’s physical assets in the event of an explosion, theft, vandalism or fire. Specific items of coverage may include:

  • Furniture and equipment
  • Computers
  • Important documents
  • Exterior signage
  • Inventory
  • Fencing and landscaping

What It Doesn’t Cover

Although there is a preset limit of coverage and a deductible in the event of an incident, not all situations are automatically covered. Policy details will reveal what situations have additional deductibles or are excluded from coverage. These can often be negotiated during the underwriting phase. Possible areas of exclusion include:

  • Business income or additional incurred expenses
  • Damage from water/sewer backup
  • Earthquakes
  • Floods or naturally occurring water damage
  • Production machinery or equipment malfunctions
  • Personally-owned equipment

A clearly written policy will be guidance in the event of a disastrous situation, but an open relationship with your provider is the best support when understanding commercial property insurance coverage.