Understanding the Basics of Commercial Property Coverage

When searching for commercial property insurance, you may come across some information that can be confusing to non-industry insiders. The technical verbiage from various insurance carriers can be discouraging for those who want clarity before signing a contract. To help you sort it all out, here are three basic points you should know when searching for property insurance.

Items Covered

In simple terms, commercial property insurance covers your business physical assets. This includes, but isn’t limited to, your buildings, equipment, furniture, fences, landscaping, outdoor property not attached to any buildings and computers. It even covers the data on your computers.

Items Not Covered

Commercial property coverage takes care of most of your business belongings, but there are some items not included in the list such as bodily injury to your employees, workers compensation and coverage for company cars. These are usually covered under their own policies.

Events Covered

Not all events are covered under property insurance. For example, normal wear and tear, power failures or random technology failures are not insurable. Incidents such as fires, lightning strikes, windstorms, hail, vandalism, theft, damage due to rioting are usually covered under most policies.

When searching for commercial property insurance, be sure to review your exact coverage’s with your carrier as there may be slight differences in what’s covered. Hold off on signing your contract until you’re fully comfortable with the coverage’s included.