Did you know that premiums written within the insurance industry reached nearly $1.3 trillion in 2020? This is great news, as this means insurance companies more often than not compensate their clients for damages they incurred.
When choosing commercial property insurance, knowing which business insurance provider to work with and significant. In practice, it is much easier than you think to find the ideal insurance plan for you when you buy insurance.
Let’s explore what you should keep in mind.
Make Sure Everything You Need Is Covered
The first thing you need to do is make sure that all of your needs are covered.
When it comes to commercial property insurance, there are a lot of different coverage options available. You’ll want to be sure to find an insurance plan that covers everything from the building itself to the contents inside.
Some common types of coverage found in most commercial property insurance plans include:
- Fire and smoke damage
- Wind and hail damage
- Water damage (from leaks, flooding, etc.)
- Vandalism and theft
- Business interruption
Of course, this is just a brief overview of some of the coverage options available. Be sure to speak with your insurance agent to learn more about what specific coverage options are available to you.
Understand What Isn’t Covered
In addition to knowing what is covered under a commercial property insurance policy, it is just as important to know what isn’t covered. This way, you can be sure to purchase the right type and amount of coverage for your needs.
Some common exclusions found in most commercial property insurance policies include:
- Damage caused by poor maintenance of the building
- Damage caused by failure to secure the buildings or property
- Damage caused by natural disasters (such as earthquakes, floods, etc.)
- Damage caused by government action that was beyond your control
You should also keep in mind that some types of businesses are more susceptible to certain types of damage than others. For example, a business that deals with flammable materials will be more likely to need fire and smoke damage coverage than a business that doesn’t.
Speak with your insurance agent to learn more about what exclusions may apply to your commercial property insurance policy.
Know the Type of Plan You Need
Once you understand what is and isn’t covered under a commercial property insurance policy, you’ll need to determine how much coverage you actually need.
The amount of coverage you need will depend on a few factors, such as the value of your property and the type of business you run. There are two main types of commercial property insurance plans available:
Basic form policies — These policies provide coverage for a limited number of perils, such as fire and smoke damage.
Special form policies — These policies provide coverage for a wider range of perils, including most types of physical damage (with some exceptions).
You can check out this resource to learn more about a reliable insurance company: www.propertyinsurancehq.com
Choosing the Right Commercial Property Insurance Is Easier Than It Seems
Although finding the right commercial property insurance might seem daunting, the process is relatively straightforward. Just be sure you keep the above information in mind when making a decision.
Looking for other useful info about how to run a successful business? Be sure to check out the rest of our blog for more information.