4 Key Things to Remember When Insuring Your Business Property

low angle photography of blue and white building structure

Purchasing a commercial building is a huge investment. You want to take the necessary steps to protect your asset. Fire damage, lighting strikes and theft can occur at any time. Insuring your property is key to protecting both your building and physical assets in the case of such unforeseen eventualities. That means picking the best possible insurance commercial building owners can find.

To arrive at this decision, there are a few considerations you must factor in. If you’ve never insured your property before, it’s easy to find the task overwhelming. No need to feel intimidated by the legal jargon associated with commercial property insurance. We’ll clearly highlight the main factors you must keep your eyes peeled for before deciding which policy to go with. A registered agent service can remove the obligation of a registered agent for a business in a hassle-free way. These services can allieviate the need to constantly be physically present in the work place. For more information consider this list of the best registered agent services.

What Does the Policy Cover?

The very first thing you need to consider is what exactly you’re paying for. What does the policy actually cover? Know that there are different types of commercial insurance available. The first mistake you can make is to assume that your commercial property insurance policy covers your building and everything in it—including your workers. Read up on the following examples of insurance coverage types so you can make the necessary differentiations:

  • Commercial auto: This policy covers your motor vehicles that are used in any manner which is business related.

  • General liability: This type of insurance ensures your employees are protected from bodily injuries that are triggered by property damage under this policy.

  • Workers compensation insurance: This type of insurance covers workers who are injured while conducting their duties on the premises.

  • Commercial property: This type of insurance protects your building and its assets from damage or loss caused by fire and theft.

The last type is our focus below.

Theft of Property Which Isn’t on Your Premises: Is it Covered?

We mentioned how commercial building insurance covers theft of your assets. But it’s important to realise that there are certain conditions to this clause such as:

  • Only items that are stolen while on your property at the time of theft are covered. 

  • With most building insurance policies, items that are 100ft away from your premises won’t be covered.

  • You may need to take a separate policy that’s designed to cover your business assets that are in transit from one place to another.

How Much You Should Pay?

Your budget plays a huge role regarding the type of commercial insurance you pick. You simply need to be aware that the premiums you pay will depend on a number of factors such as:

  • Condition of your building: If the electrical, plumbing and HVAC systems on your premises are in good condition, your premiums are likely to be lower.

  • Your industry: Certain industries such as the construction sector are considered to be high risk industries. This may push your premiums up.

  • Business location: If you’re operating in a high risk location, your premiums may be higher.

  • Safety procedures: Do you have adequate safety measures on your premises such as fire alarms or sprinkler systems?

  • Size of your business: The larger your business, the higher the premiums. 

Pick the Right Agent

It’s imperative that you pick the right agent to represent you and provide you with the best possible coverage. Make sure that insurance agent you pick meets the following criteria:

  • Is licensed and registered by the respective insurance board.

  • Has ample knowledge regarding your business industry and operations.

  • Have the necessary credentials.

  • Is reputable. Research the company by visiting their website and also reading a few reviews on the company. 

  • Are readily accessible, professional and responsive. The last thing you need is to pick an agent that’s difficult to get hold of. Such situations are bound to get worse once they have your contract secured. This doesn’t bode well, especially when you need them the most—like when you want to claim your insurance. Pay attention to the small details. Do they respond quickly to emails? Do they call you back when they promise to? Do they pick up your calls?

Final Words

Picking insurance commercial building owners will find valuable is no easy task. The wrong policy will leave your company exposed and unprotected when it matters the most. 

You’ll also need to establish whether the policy covers more than just your building. Does the policy cover non-payment of rentals from tenants in the event that you lease your building? Some policies will compensate you for the rentals, but never assume. Always ask for particulars. 

Pick a professional and reputable commercial insurance agent that has your business best interests at heart. And even so, we advise you to consult with your lawyers before signing on the dotted line. They’ll look over the policy and explain to you what exactly it covers & what you’re paying for.

Did you find our tips helpful? Let us know.