Commercial property insurance safeguards assets vital to your company, and insurers can customize a policy to suit your requirements.

Whatever kind of small business you run, the possibility of losing your property from fire, theft and weather conditions, or even accidents could cause a loss to your income.

The insurance for property in commercial use compensates you for damaged or lost inventory, equipment, and other property. It is a must part of any company’s risk management plan regardless of the industry.

What Are the Types of Commercial Property Insurances That Cover

You can customize your commercial property insurance policy coverage to cover almost any physical asset your company owns. The policies typically cover any combination of the following:

  • Equipment, like computers tools, equipment, and other machines
  • Furniture and fixtures, such as chairs, desks, appliances, and equipment
  • The inventory your business sells that you sell, such as food and perishable goods
  • Physical office space

It is possible to get commercial property insurance if your company gets based out of your home. Homeowner’s insurance policies typically don’t cover damaged or lost business equipment. Carriers offer commercial property insurance with general liability insurance under business owner policies (BOP) for small companies. They typically cost less than buying the two approaches on their own.

Cash Value vs. Replacement Value

Commercial property insurance coverage gives policyholders the option of receiving either cash value or the replacement value for damaged or stolen property.

Cash Value: Selecting the cash value option as an insurance policy for commercial properties typically will result in lower rates. Still, it’s not the most suitable option for small-sized firms. Because many things decline over time, the insured may be required to pay additional funds to restore the item. As a result, cash value policies only cover what the damaged equipment is worth today.

Replacement Value: Selecting the replacement value option on your insurance for commercial properties policy is that the insurance company will pay for the damaged equipment with a new equivalent. While replacement value policies are generally more expensive, the additional costs could benefit businesses that rely on the latest technology, like most IT businesses.

Property Insurance for Renters vs. Property Insurance for Owners

Property Insurance Coverage for Renters: If your property gets rented out as offices for commercial use. You may buy an insurance policy covering only items you own in the office space. You might also be required to protect the equipment you lease based on your agreement between the landlord and you.

Commercial Insurance for Property Owners: If you own a retail space, you can buy a policy that will cover the building itself and everything inside, including electrical and mechanical systems.

Schedules vs. Riders

The schedule and the riders offer two more ways businesses can customize commercial property insurance policies to their particular needs.

Schedules: A type of coverage that implies that your coverage will cover specific equipment items listed within the policies. A schedule added in your insurance policy suggested for companies that own or lease the most expensive equipment required for day-to-day operations. And which would be beyond your coverage limits for replacing.

Riders: They are endorsing your insurance policy for commercial property that covers you against events that standard policies do not cover. For instance, landscaping businesses could include a property floating rider to protect lawnmowers frequently shift between work locations.

Make Sure Your Company Vehicles Are Secure

Alongside expensive property and equipment, cars could be among your business’s most important assets. Insurance policies for personal vehicles usually don’t cover damage to property or medical expenses that arise from accidents that occur while driving for work.

Companies that own vehicles for work have to buy commercial auto insurance. It is required in nearly every state and will cover the theft of cars. Hiring non-owned auto insurance (HNOA) get highly recommended if employees or businesses use their vehicles to work.

Contact us now Commercial Insurance Ottawa to compare commercial insurance quotes on the property from top firms. You can contact us at (613) 454-5640 or once you’ve found the right policy for your small business.