Commercial property insurance is essential for protecting your company’s buildings against potential liabilities and financial setbacks caused by property damage. This insurance provides coverage for the physical structure, your business assets, and the inventory housed inside, protecting your company up to the specified policy limits, minus any deductible. It’s a vital tool for ensuring the continuity of your operations.
What Commercial Property Damage Insurance Covers and Doesn’t Cover
A commercial property policy’s coverage varies significantly depending on whether you are a landlord, a tenant, or an owner-occupant.
For Landlords/Lessors
A landlord’s commercial property policy primarily covers the physical structure of the building and any permanently installed fixtures, including the walls, roof, plumbing, and common areas. What it typically does not cover is the personal property of a tenant or their business. A landlord’s policy protects their investment in the building itself, not the contents of a rented space.
For Tenants/Lessees
As a tenant, your landlord’s policy does not protect your business’s assets. You need a separate policy to cover your Business Personal Property (BPP). Examples include your inventory, equipment, furniture, fixtures, and computers. Let’s say a plumber leases a space for their office and a fire destroys their tools and inventory. In this case, the plumber’s commercial property insurance would cover those losses.
For Property Owners/Mortgagees
For an owner-occupied business, a single commercial property policy can be structured to cover both the building and the business’s personal property. It covers both the structure and its contents. If the property has a mortgage, the lender (mortgagee) will be listed on the policy, as they require assurance that their financial interest in the building is protected.
Standard Exclusions: Standard commercial property policies in Florida almost always exclude damage from floods and earthquakes. These perils require a separate policy or endorsement. In addition, many policies exclude or limit coverage for damage from windstorms, a significant risk in Florida, which often requires separate windstorm insurance or a high percentage-based deductible.
Who Needs Commercial Property Insurance?
Any business with a physical location and assets needs commercial property insurance, from a small HVAC contractor who stores valuable equipment in a warehouse, to an architect with expensive computer equipment and plans in their office, to a plumber with a shop full of tools and inventory. This coverage protects the financial stability of the business against a sudden, unexpected loss.
Additional Coverage Options
In addition to basic property damage coverage, businesses should consider the following supplemental insurance options to enhance their protection:
Business Interruption Insurance
This policy helps businesses recover lost income during unexpected closures or disruptions caused by covered events, such as natural disasters or fires.
Windstorm Coverage
Given the potential severity of wind-related events, this coverage protects against damage caused by high winds, including hurricanes and tornadoes.
Flood Insurance
Standard property insurance often excludes flood damage; therefore, it’s essential for businesses, especially those in flood-prone areas, to secure a separate flood insurance policy.
Additional coverage options may also be available. Your CIS agent will recommend the best commercial insurance coverage options that will protect your property against damage or loss.
Call CIS to Protect Your Business Against Costly Property Damage
Commercial Insurance Specialists is a Trusted Choice independent agency that offers commercial property damage insurance coverage for architects, plumbers, HVAC contractors, and other businesses of all sizes. We provide outstanding service to clients in Land O Lakes, Plant City, Lakeland, Indian Rocks, and surrounding Gulf Coast and West-Central Florida communities.
Just give us a call, and we will shop around to find the best rates and property coverage options customized for your business from highly rated carriers. Take the first step towards protecting your business-contact us today for a free, no-obligation commercial insurance quote!
