When most people think of business insurance, their minds go to liability coverage and errors and omissions insurance. However, if your company has a physical building, there’s another key type of insurance you might be missing: commercial property insurance.
There’s no one-size-fits-all approach to commercial property insurance. Tailoring your policy to your industry can help you avoid potential problems without paying for more coverage than you need.
What Types of Commercial Property Insurance Can You Choose From?
Commercial property insurance can include a range of different coverage types. These are some examples:
Commercial Fire Insurance
Commercial fire insurance typically covers more than just damage to your commercial building. It also may replace lost income if you have to temporarily close after a fire.
Commercial Flood Insurance
Most standard commercial property insurance policies don’t include flood insurance. However, if you’re in an area prone to floods, it may be worth purchasing a separate policy.
Ordinance or Law Insurance
If you have to rebuild your commercial property after a fire or other covered loss, you will need to make sure it’s up to code. Ordinance or law insurance covers the cost of bringing your new building up to code.
Glass Insurance
This coverage pays to replace windows or glass doors if they are destroyed in a covered loss.
Commercial Casualty Insurance
This is a type of liability insurance that protects you from legal claims. It often covers both claims due to on-site accidents and those stemming from business operations.
How to Tailor Your Insurance to Your Industry
When purchasing other types of business insurance, you don’t just buy a standard-issue insurance policy — you adjust specific coverage amounts to suit your industry. These are a few steps to help you tailor your policy:
Consider Industry-Specific and Location-Specific Risks
The type of commercial property insurance you need depends on the risks your business faces, and those risks can vary significantly by industry.
For instance, if your company offers consulting services to other businesses, you’ll likely need more professional liability insurance than premises liability coverage. If you store sensitive data, you may need additional liability insurance to protect you from cyberattacks.
The type of insurance you need will also vary by location. For instance, if you’re in a part of California where wildfires are common, you’ll probably want to purchase more fire insurance than flood insurance.
Avoid Over-Insurance
If you’re the type of business owner to err on the side of caution, it might be tempting to purchase every available type of coverage. However, over-insurance can put a serious drain on your finances over time.
Take Note of Any Legal or Regulatory Insurance Requirements
Depending on your sector, you may be obligated to purchase certain kinds of insurance. It may be wise to consult a lawyer to make sure you understand what’s required.
Talk to Your Insurance Agent
Don’t underestimate the ability of an independent insurance agent to help you select the right coverage. Independent agents don’t work for a single insurance company, so they can obtain quotes from multiple carriers.
Make Sure Your Business Stays Protected
It’s important to periodically review your insurance to make sure it meets your needs. Here’s a look at the steps toward getting — and keeping — the right commercial property insurance:
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Take time to consider your industry’s greatest risks
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Consult with an independent insurance agent
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Work with your insurance agent to select coverage that meets your needs
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Regularly review your policy to determine whether you need to make changes
The last step is particularly important in highly regulated industries. When you take the time to regularly revisit your policy, you can avoid potential legal and financial issues.
Need Help Choosing Commercial Property Insurance?
Navigating the world of business insurance can be overwhelming, but Hulett Insurance is here for you. Since 1995, our independent insurance agents have helped business owners keep their companies protected with the right coverage.
Do you need to select or update your commercial property insurance? Get in touch today!
