All businesses, large and small, require property insurance. Whether your company is self-contained or has a massive inventory, as long as you have a location and equipment, you need protection from loss. At Blue Lion Insurance Advisors, LLC, in Red Bank New Jersey, we counsel clients about what kinds of Commercial Property Insurance they require and help them choose the policy that best suits their needs and fits their budget.
Because we aren’t affiliated with any particular insurance company, we are able to make our clients’ interests our top priority. Commercial Property Insurance, like all insurance, is designed to prepare for unexpected calamities. The time to do this is now- before an emergency occurs. Commercial property loss can put your company in peril so be proactive. Contact Blue Lion Insurance Advisors, LLC at (732) 649-1600 or contact us online.
What kind of property does Commercial Property Insurance protect?
Commercial Property Insurance covers structures you own, including fences and signs. In addition to the structures your business inhabits, a good Commercial Property Insurance policy should provide coverage for:
- Furniture, electronic and other office equipment
- Books, tools, stored documents, and paper files
- Landscaping you have purchased
- Construction equipment
- Technological data
- Financial assets
- Property in transit
- Ordinary payroll expenses
- Money and securities
It is hard to overstate the need for protection from the loss of the above. It is important to note, however, that Commercial Property Insurance does not typically cover vehicles. Vehicles are covered under Commercial Auto Insurance.
What causes of damage does Commercial Property Insurance cover?
Commercial Property Insurance covers a number of potentially damaging events, including:
- Fire and smoke
- Snow, sleet, or hail
- Acts of terrorism, riots, explosions
- Vandalism and malicious mischief
- Business interruption (e.g. rent, taxes, loan payments, cost of temporary accommodations)
It is important to note that while some comprehensive Commercial Property Insurance covers water and/or flood damage, it is often necessary to purchase a separate Commercial Flood Insurance policy to obtain this protection.
Types of Commercial Property Insurance
There are two basic types of property insurance coverage: replacement cost and actual cash value.
- Replacement cost policies pay the dollar amount it could cost to buy a new item at the time of a claim.
- Actual cash value policies, on the other hand, factor in depreciation, providing reimbursement based on the current value of the item damaged or lost.
Clearly, during inflationary periods, the former is preferable. Nonetheless, there are always passages in insurance policies that may seem confusing or ambiguous to the untrained eye. Contact our skilled insurance advisors to clarify the details of various insurance policies so that you can make an informed choice. We will make sure your Commercial Property Insurance is Blue Lion Strong™.
What factors could affect the cost of Commercial Property Insurance?
Insurance companies take into account risk factors your business presents when establishing their premiums. Such factors include:
- Location (e.g. wildfire zone, dangerous neighborhood)
- Number of structures, employees, and their level of training
- Type of construction (e.g. wood, stone, brick, metal)
- Number and type of exits (e.g. stairs, elevators)
- Presence of hazardous materials (e.g. toxic chemicals)
- Dangerous railings, balconies, large ceiling fixtures
- Potentially dangerous equipment or working conditions
- Preventative measures taken (e.g. indoor sprinklers)
- Proximity to a firehouse or police station
Our knowledgeable insurance advisors can help you compare similar policies so that you make a wise choice in terms of your business’s particular needs. Contact our experienced insurance advisors today and sleep well tonight.