If your business has property, you need commercial property insurance. And while getting this type of insurance is not that different from getting other types of insurance, what it covers can certainly be new if you've never had commercial property insurance before. You'll have lots of questions, and the insurance agent will have a lot to discuss with you. The information you request and receive should include the following questions:
Does This Include Business Interruption Insurance?
Business interruption insurance is a fairly standard coverage that is often included in commercial property insurance. However, some companies offer it as part of liability insurance instead, so you need to double-check whether the property insurance you're getting has it or not. Then you'll need help calculating what coverage you'd need. The insurance can cover things like lost income and property rent if your business can't function due to something else covered by the commercial property insurance. For example, if there is a fire in the store next door and your business has to close due to smoke damage, business interruption insurance would kick in while your store was being cleaned and repaired.
What Type of Flood Damage Is Covered?
Commercial property insurance is pretty much like homeowner's insurance in that flooding needs a separate policy. However, do double-check what types of flooding need that separate coverage. Flooding from an overflowing river will likely need its own coverage. But flooding due to a broken pipe in the wall may actually be covered under the commercial property insurance policy. But never assume – always ask when you buy the policy.
What Property Value Types Are Available?
If something happens and you need to use the insurance to replace items, there are a number of ways the insurance company can assign value. There's the actual value of the older item, the value that you'd pay now if you went out and bought the item new, and more. Always be sure you fully understand the type of valuation in the policy. You'll likely get to choose, but you must understand what you're choosing so you aren't unpleasantly surprised if you file a claim.
Your insurance agent will walk you through all the coverage, though having questions ready helps, too. When you have the information you need, you can buy a really comprehensive policy that covers everything you need it to. You can run your business with confidence that you and it are protected.
For more information, reach out to a commercial property insurance company, such as Rafail Insurance Agency, near you.
