Commercial Property Insurance

Commercial Property Insurance

Commercial property insurance is a type of insurance that provides protection to your business assets against various risks, such as fire, smoke, wind and hailstorms, and vandalism. While it is not required by law, it makes sense that you purchase adequate commercial property insurance coverage so that your business does not suffer a financial setback due to an unforeseen event.

Common types of commercial property insurance policies

Different types of commercial property insurance plans provide protection against different risks. While some commercial property insurance plans cover only those risks that are listed in the policy, others provide coverage for all risks, unless the policy specifically excludes some risks.

Based on the risks covered, commercial property insurance policies can be divided into three categories:

• Basic form policies - Generally, such policies provide protection against common risks, such as fire, windstorm, lightning et al
• Broad form policies - Besides covering common risks, broad form policies provide protection against many additional risks, such as structural collapse, water damage, financial losses caused by sleet or ice
• Special form policies - These policies provide protection against all risks, except those that the plan specifically omits. Generally, events such as war, terrorism, nuclear disaster, and flood are omitted in special form policies

Commercial property insurance plans provide business owners either actual cash value coverage, replacement cost coverage, or a combination of both.

When you choose actual cash value coverage, in case of property damage the insurer only pays the current value of the property. In replacement cost coverage, the insurer pays the company the cost required to replace the damaged property with the new property of same kind and quality, up to the maximum limit defined in the policy.

Common questions that you must ask before purchasing a commercial property insurance coverage

• How much coverage do I require?
• How can I reduce my risks, so that I can get good insurance coverage at low price?
• How does a typical commercial property plan works?
• What type of commercial property plan meets my needs best?
• Should I choose actual cash value coverage or replacement cost coverage or a combination of both?

How can Advantage SBS help you?

Through our agency partnerships, Advantage SBS works with more than 150 national and regional carriers to help you select the best commercial property incurance coverage for your business.

To learn more about Commercial Property Insurance available through Advantage SBS or to speak with a representative, contact us today at (888) 762-2075 or complete our quote request form here.