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Why Do Companies Need Commercial Property Insurance

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Let's hope it never happens, but suppose a fire destroyed the building that houses your business and all of its contents. Imagine instead a water pipe bursts and ruins your drawings, documents, or other valuable papers. Suppose a storm ruins your outdoor sign. Those are only some of the things that could happen that commercial property insurance could protect your company from a big financial loss if they were to happen. There are a number of things the insurance covers, including: The property of others. Your building. Your inventory. Your furniture and equipment. Your outdoor sign. Your fence and landscaping. According to the United States Small Business Administration, commercial property insurance covers everything related to …show more content…

A business owner would usually purchase a peril-specific policy if his company were in an area where there is a high risk from a certain kind of peril. Here are some specific types of coverage typically provided by commerical property insurance: Valuable papers coverage protects your company by providing limited coverage for valuable papers and business records. If you obtain an endorsement, you might be able to increase the amount of your coverage. Ordinance or law coverage will give you money for additional costs to rebuilt or repair a structure to make it meet building codes after it has been damaged. Many such policies are limited, but an endorsement can make it possible to increase your coverage. Extra expense coverage will pay additional money to return your business to its normal condition after it has been damaged. Business interruption coverage will pay for the income you lose after damage to your building that makes it impossible to perform your normal business …show more content…

You must tell your insurance company within that time frame--often 30 days -- or your new building won't be covered. your policy won't cover the new building. The policy usually only covers buildings listed in your policy. Building occupied by the insured coverage protects any building you don't own but regularly use. insures a building that you regularly use but don't own. You might need this if you borrow or lease a building. Flood insurance is sometimes provided by insurance companies if a business is in an area with a low risk. Most flood insurance, however is provided only by the National Flood Insurance Program. Windstorm and Hail Insurance can protect you if you are in an a high-risk area for such events. Crime insurance can protect you against a number of crimes, including forgery, robbery or safe burglary, theft, destruction, and disappearance (also protects securities); and loss of money due to damage to glass caused by a break in. A reputable insurance agent can help you determine the type of coverage you need. For more information, feel free to contact

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