A Guide On Commercial Property Insurance

Commercial property insurance is essential if your business owns physical buildings, expensive equipment, and irreplaceable documents. The coverage protects these valuable business assets from risks such as fire and flooding. If you wish to take this cover, below are some things to consider.

Ensure You Have Adequate Coverage

As a rule, you must ensure that your business has adequate coverage. The secret is to list everything your assets and ask for a formal appraisal. This way, the company is neither underinsured nor overinsured. Most insurers will inquire whether you want to insure the replacement or actual value of the insured items. The replacement value refers to the cost of a new item, while the actual value is the cost of the item when the damage occurred. Therefore, actual value considers depreciation. If you buy or sell business assets, or move your business to new premises, ask the insurance company to re-examine your coverage. Typically, the insurer lowers or increases your premiums depending on your situation. 

Consider Add-ons

Check the insured risks to determine if you need add-ons. For instance, if the area is prone to subsidence, ask the insurance company to cover damages caused by structural damage or earth movement. Suppose your business is located in a war zone or an area with political instability; the coverage should compensate you for damages caused by riots or war. If you regularly move some of the insured items, ensure the coverage contains the damage to mobile property add-on. Consider other add-ons such as business interruption, newly acquired buildings, extra expense coverage, and ordinance coverage. Remember, you should only choose the add-ons that you need. Otherwise, you will incur high premiums. 

Combine Covers

Your business requires different insurance covers. Over time, it becomes challenging to manage these covers since you deal with various insurers, each charging different premiums. Therefore, consider combining these covers into a single policy. Most insurance companies will reduce the premiums of the umbrella cover. For instance, commercial property insurance can be combined with general or public liability insurance. Besides, you could bundle it with your automotive insurance. 

Work With A Trusted Broker 

An insurance broker should help you shop for a suitable insurance cover. Typically, the broker explains what each insurance company has to offer, its benefits, and its downsides. For instance, while you might be interested in a company with lower premiums, the broker could inform you about a bureaucratic claims process that could slow down your business. This insider information helps you make an informed choice.