Commercial Property Insurance

Protect your businesses physical assets from fire, theft, burglary, and more with commercial property insurance. From small, office businesses with only a couple laptops, to large, multi-location manufacturing facilities, we'll go over the different types of property insurance and important coverage details.

‍

At its core, commercial property insurance is a policy that insures property you own, rent or lease - against either "named perils" or "all perils". This can protect things like your building, computers & laptops, business equipment, tenant improvements, aerial equipment, and more. You can select blanket limits or schedule each item onto the policy.

‍

Property insurance can be a complex policy if you have lots of different equipment, so it's important you work with an advisor who can organize it and underwrite it properly.

‍

Depending on your business and operations, the type of coverage and property insurance will change. For technology start-ups, you probably only need laptops, desks, and chairs covered; for food manufacturing, you will most likely need coverage for cooking equipment, inventory, shipping, computers, and more. If you rent your building then tenant improvements & betterments should be considered. If you own the building, then a building insurance policy covering the structure and improvements should be considered.

‍

Below are the most common types of property insurance - feel free to skip ahead by selecting the type of coverage on the left hand side of the screen.

• Business Personal Property: Laptops, computers, and business furniture stored in a specific location (ie, your office)
• Inland Marine: Equipment used for the business that moves around outside of your premise (ie, cameras)
• Ocean Marine: Goods and Products that are traveling overseas (ie, shipping container with property)
• Aerial Equipment: Drones, planes, and payload flying above ground
• Tenant Improvements & Betterments: Permanent improvements to a building you are renting (ie, new floors, walls, fixtures, etc.)
• Building Insurance: The actual structure of a building you own (ie, the walls, roof, electrical, plumbing, etc.)
• Equipment Breakdown: Mechanical or electrical breakdown to business equipment like boilers and machinery
• Electronic Data Processing: Broader coverage for computer related equipment.
• Business Income / Interruption: Pays the business when property is damaged that affects income + revenue

When you create an insurance policy it is important to understand the coverage language and limitations. People often assume that when they have an insurance policy, every scenario is covered. The reality is that an insurance policy only covers what is specified in the policy language. Property insurance is typically insured on an All Peril, All Risk, or Special Form policy, or on a Named Peril Risk. Below are the differences:

• All Peril, All Risk, or Special Form: covers all perils unless specifically excluded on the policy (listed in the Exclusion section)
• Named Peril: covers only the perils specifically named on the policy

The most common type of perils are listed below. We encourage you to review your policy or think about the perils most likely to happen with your property to ensure they are covered:

• Fire or lightning
• Smoke
• Wind or hailstorm
• Flood
• Earthquake
• Burglary
• Theft
• Vandalism
• Freezing
• Short circuiting
• Riots

The levels of coverage will change depending on your property, so it's important to have a discussion with a Fullsteam Advisor. We can learn more about your operations, help get your property organized, and put together a comprehensive plan.

Each type of property insurance policy has it's own set of exclusions so it's smart to review your coverage with your advisor. Understanding All Peril vs Named Peril (see above) are also great terms to understand as they really clarify what is covered.

‍

Property Insurance does not cover normal wear and tear.

If your business owns, rents, or leases any property, a few lines of property coverage should be considered. A building, it's contents, or property moving around outside your premises are all common examples of property your business may be responsible for. Each type of property has a specific policy that we go over in this article. In addition to replacing lost or damaged property, certain insurance will pay to repair it and cover the income until it's replaced. Chances are you fit into one of the following buckets:

• Building Owner
• Property Renter
• Equipment Lessee
• Work From Home Business

Life can be unpredictable especially if you work from an area with tough weather or high crime. A property loss can be a situation that prevents your business from making money, or in some cases, put you out of business for ever.

‍

A property insurance policy will ease any concern around a scenario that is out of your control. It will also help keep your business afloat until the property is replaced.

‍

Protect your investments, your time, and expenses that may come along with a property loss.

The rate applied to your property depends on specific characteristics - the value, safeguards, location, and materials, to name a few. Property located in or stored in areas with low crime are typically going to cost less compared to property located in or stored in areas with bad weather such as fires, earthquakes, and floods.

‍

If your property is in an area with high crime, for example, having safeguards like burglar alarms and cameras will help the total premium. In addition, if your building is in an area with fire hazards, having a fire hydrant and fire station near by will reduce premium.

‍

Generally speaking, if you are in an area with frequent natural disasters (hello California), then your premium will be higher.

‍

As a brokerage, we work with all top rated insurance companies and negotiate with all of them to get the best rate and coverage for your property. Get in touch today and learn more about our process.