Why Commercial Property Owners Should Have Insurance

4/27/2022 (Permalink)

Commercial property is any piece of real estate dedicated to business activities. This means that the commercial property you own is really valuable, as it represents your livelihood and the livelihood of your employees. This is the biggest and most important reason to purchase insurance for your commercial property, because if something were to happen to it or the physical assets inside were lost, the business could suffer major, if not devastating, losses. While you may take other steps to secure the premises from property damage, this security is never truly a guarantee. For these reasons, it makes good business sense to purchase commercial property insurance as a safeguard.

But what does this type of insurance actually cover? There are a few types of damage to commercial property that are quite common. These may or may not be a part of your commercial property insurance policy, since some types of coverage are optional and come with an additional price tag. For example, damage caused by earthquakes or floods isn't typically included in a standard commercial property insurance policy, although this may vary by geographical area.

The five most common types of commercial property damage claims consist of burglary and theft, storm damage, fire damage, window damage, and roof damage. Below, we discuss each of these types of claims and if commercial property insurance companies typically approve them.