All you need to know about commercial property insurance

Consider the following scenario: a business owner owns an elastic manufacturing unit adjacent to a restaurant. The restaurant building catches fire as a result of staff negligence and other similar factors, and the fire spreads to the manufacturing unit. It destroys all important documents, machinery, and furniture, causing serious injuries to employees. The owner of the manufacturing unit must pay the medical bills of his injured staff as well as purchase new machinery and fittings for his company. In this case, commercial property insurance can assist in covering all expenses without interfering with business operations. Not only that, but it may also cover legal fees if the owner of the manufacturing unit sues the restaurant owner for the damage done.

More about commercial property insurance

Threats involving commercial property damage cannot be ignored. Commercial property insurance should be the first thing that business owners and renters think about if they want to start a successful business. With increased competition and rising commercial property prices, being insured has become a must for long-term survival. It pays for any damage to the building, furniture, fixtures, stocks, and important documents. Commercial property insurance, in addition to providing coverage, boosts the credibility of business owners.

Scope of the commercial property insurance policy

Let us have a close look at the scope of commercial business insurance and find out why every commercial property owner must have it.

Burglary and theft

In a world where the level of uncertainty grows by the day, theft and burglary can have a negative impact on a business. What if you misplace important documents required to close a large deal? What if the updated and expensive machinery you installed is stolen? Get commercial property insurance to go the extra mile and answer these questions.

Collisions with vehicles and aircraft

It may seem unlikely that an aircraft will crash into your commercial property and cause damage, but damage to building components following a collision with a vehicle is very common. A heavy container transporting goods may collide with the outer fences on which you have spent a significant amount of money to give your office a different look. Maintain property insurance and avoid allowing such damage to affect your business premises.

Natural calamities

Natural disasters, such as floods, are uncontrollable. Some of them can be predicted, but none can be avoided. A large flood can damage your commercial property as well as the inventory you need to deliver to your customers. You cannot afford to lose your company due to natural disasters, and as is customary, purchasing commercial property insurance is the solution.

Third-party liability

Third-party activity, such as the negligence of workers and other staff, may cause damage to your commercial property. It could be because of incidents in nearby commercial spaces. Whatever the reason, get it all covered by purchasing commercial property insurance.

Types of commercial insurance policies

The cost and terms of coverage are entirely determined by the type of commercial insurance policy chosen. A special form policy covers all risks to commercial property but excludes damage caused by insect attacks, terrorism, and earth movement. A basic form of the policy can be used to protect businesses from common disasters such as floods, fires, and storms. Others who take a broad form policy are protected from damages caused by water, snow, and building structural collapse.

Factors affecting the cost of commercial property insurance

Every insurance policy has a different level of coverage, and the cost is determined by a variety of factors. These are the following:

Construction and age of the property

The type of material used to construct the building influences the cost of insurance policies. A wooden building can withstand more damage than a brick building, which is why wooden buildings are more expensive to insure. Older buildings are also more expensive to insure.

Location and safety equipment

Commercial properties in cities have access to safety equipment and low insurance rates. A commercial property in a disaster-prone area or with a high crime rate is more expensive to insure.

Type of neighboring properties

The type of neighbouring properties also influences the cost of commercial property insurance coverage. If the property is close to a business that uses hazardous materials, the risk that the site being insured will sustain damage is higher, causing insurance rates to rise.

What all things are covered under commercial property insurance?

Commercial property insurance usually covers the following:

• Computers, furniture, and other equipment
• Exterior signs, fences, and landscaping
• Important documents and inventory

Conclusion

You now understand all of the advantages of having commercial property insurance. Seek assistance from reputable brokers such as Bluewell, which prides itself on its customer-centric approach. Bluewell provides an instant online personalised quote. A quote can take up to 24 hours to be delivered in some cases. Bluebell's dependable insurers include AIG, Vero, Steadfast, and Protecsure.

Bluewell insurance brokers provide contractors insurance that is specifically designed to protect your company from financial losses of any kind.