One thing you can be sure of in life is that nothing is guaranteed. No matter how well you plan or how hard you work to make things go right, Murphy’s Law is always lurking right around the corner. This is true for everyone, but many business owners find that it hits particularly close to home for them. After all, when you own a business with equipment and inventory housed inside and employees, customers, and other visitors coming and going, any number of things can go wrong at virtually any time. Of course, you also have the weather and unexpected natural disasters to contend with.
Keeping Everyone’s Best Interests in Mind
Since you know there’s an endless list of things that could go wrong, it’s best to plan for as many eventualities as possible. That’s one of the main reasons commercial property insurance was created. It’s designed to protect business owners and other people when things take a turn for the worse. As you’ll learn through websites like www.raiznerlaw.com, several types of business insurance are available, and not all policies cover all scenarios. Having said that, we’ll cover some of the basics of commercial property insurance here so you’ll be better equipped to choose the most appropriate coverage for your business as well as the best interests of everyone involved.
Why Is Commercial Property Insurance Important?
Commercial property insurance is important for businesses for many reasons. Obviously, it protects your business in the event of an accident or other mishap. Secondly, it safeguards your employees in case they’re injured or experience losses while at work. On top of that, insurance can cover your visitors and customers if they’re injured or their belongings are lost or damaged while on your property.
Insurance can also protect you and your customers if they’re injured or otherwise negatively affected by your products or services. Those are only a few of the reasons you need business insurance. While there are several types of business coverage, we’re going to discuss one of the most basic types of policies right now: commercial property insurance.
What Does Commercial Property Insurance Cover?
Standard commercial property insurance covers a wide range of items and scenarios. For one, it encompasses all the buildings associated with your business, such as the main structure of your company and any surrounding buildings. It can also cover additional buildings you own or are responsible for whether they’re on the main property listed on your policy or elsewhere. This might include secondary locations or warehouses you might be leasing. Your parking lot is generally covered under this type of policy as well.
At the same time, commercial property insurance covers everything in your building. This might include your office equipment, manufacturing machinery, forklifts, pallet jacks, and other essentials. It’ll also cover fixtures and appliances within your business, such as the microwave in the break room, vending machines, lighting, plumbing, electrical components, and windows. Furniture is included as well. Your inventory and materials will most likely be protected, too. If it’s part of your company’s daily operations, it’s generally covered.
Taking a Closer Look
Other people’s property is covered under a commercial insurance policy as well. This can include employees’ belongings they bring to work with them. If an employee’s vehicle is destroyed by a tornado while he or she is at work, your insurance may pay to replace it.
In the event one of the lights in your parking lot or your business signage falls onto a customer’s vehicle, the damages will be covered by your insurance. If a visitor accidentally knocks over an entire shelf of items and the incident causes widespread damage, your losses might be covered. Those are only a few of the possibilities. Keep in mind that most of the damages and losses included in commercial property insurance only apply to a radius of 100 feet around your business.
What Types of Damages and Situations Does Commercial Property Insurance Cover?
Commercial property insurance covers a long list of incidents and types of losses. Though not all policies provide the same types of coverage, your specific policy’s extent will be included in your basic cause of loss form. Damage and losses caused by fires and lightning strikes are among the most common issues included in business insurance policies like these, but they also go above and beyond those typical destructive forces.
You’ll most likely be covered in the event of high winds, hail, and other storm-related damages. Smoke damage from fires and malfunctioning machinery may be covered as well. On top of that, you’ll have coverage for losses and damages that aren’t caused by fires and storms. This might include rogue vehicles crashing into your business, damage caused by unruly rioters on the property, and losses stemming from theft and vandalism. You may even be covered for damages caused by volcanoes and sinkholes.
If you take out an insurance policy with broader coverage limitations, you’ll be safeguarded against even more possible causes of damage. These might extend to falling objects, water damage from leaking appliances and fixtures, and damages caused by snow or ice buildup on your building. If you purchase additional coverage, you could be protected in the event of even more incidents, like floods and earthquakes.
It’s important to remember that not all types of damage are covered under commercial property insurance policies. Not all policies cover floods and earthquakes. You may not be safeguarded against damages caused by military actions or terrorism. Nuclear explosions aren’t likely to be covered, either.
Also bear in mind that insurance providers require you to keep up with repairs and maintenance needs for your business and everything in and around it. Commercial property insurance won’t cover a collapsed roof if the roof was damaged in a previous storm and you never had it repaired. You won’t be covered for damages stemming from internal flooding caused by damaged or outdated plumbing.
Determine the types of coverage you need when searching for a policy. Reaching out to professionals for help with this aspect is advised. They can help ensure you have the types of coverage you need without overspending on unnecessary add-ons. Be sure to keep up with routine maintenance, and have repairs made as needed to guarantee you’ll be covered when situations arise.