COMMERCIAL PROPERTY

When you own your own business and have commercial property, it’s important to understand everything you can about commercial property insurance. Commercial insurance is a key component to reducing your risk as a business owner and ensuring financial protection for your employees, your customers, and your livelihood.

Commercial property, also called commercial real estate, investment property or income property is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space. Most often, commercial real estate is leased to tenants to conduct income-generating activities.

Commercial space generally refers to office space. With commercial space, there may not be as many people wandering in and out, whereas retail space depends largely on foot traffic. Industrial buildings are generally factory or warehouse buildings, where stuff is made or stored for industries.

Commercial property, also called commercial real estate, investment property or income property is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space. Most often, commercial real estate is leased to tenants to conduct income-generating activities.

A commercial building may combine functions, such as offices on levels 2-10, with retail on floor 1. When space allocated to multiple functions is significant, these buildings can be called multi-use.

Commercial real estate is commonly divided into five categories:

Commercial real estate is commonly divided into five categories:

3d rendering luxury business meeting and working room in executive office
  • Office buildings – This category includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in between.
  • Retail/Restaurant – This category includes pad sites on highway frontages, single tenant retail buildings, small neighborhood shopping centers, larger centers with grocery store anchor tenants, “power centers” with large anchor stores such as Best Buy, PetSmart, OfficeMax, and so on even regional and outlet malls.
  • Multifamily – This category includes apartment complexes or high-rise apartment buildings. Generally, anything larger than a fourplex is considered commercial real estate.
  • Land – This category includes investment properties on undeveloped, raw, rural land in the path of future development. Or, infill land with an urban area, pad sites, and more.
  • Miscellaneous – This catch all category would include any other nonresidential properties such as hotel, hospitality, medical, and self-storage developments, as well as many more.

Commercial Property Insurance

Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial property assets and their contents from loss like fire, explosion, burst pipes, storms, theft and vandalism, and natural disaster. These policies may also contain provisions of loss of rental income or an increase in business expenses that result from any of the resulting property damage.

Earthquakes and floods are generally are not part of the standard policy, unless added to the policy as an endorsement. A separate policy may also be acquired. It is generally bundled together with other forms of insurance, such as commercial general liability insurance.

How much does Commercial Property Insurance Cost?

Many different factors are used to determine the rate. The age of the property building, roof, and business assets and the following factors are used to determine the rate:

Location: Is the area prone to storms and other natural disasters?

Construction: Is the building constructed with fireproof materials, wood, steel, masonry stucco, concrete tile or shingle roof? Does it have new or upgraded electrical wiring, plumbing and Air Conditioning units?

Occupancy: Is the property vacant or occupied by tenants, What kind of industry are the tenant business involved in?

Fire and theft protection: How far is the nearest fire hydrant and fire station? Does your business have a fire alarm and/or full or partial sprinkler system? How about a security system?

What does commercial property cover?

A shot of a high rise tall building

General Liability

General commercial liability insurance provides coverage to any company or business for bodily injury, personal injury and property damage that might be caused by the business’ operations or products, as well as any injuries that might occur on the business’ premises. A general liability claim is only triggered by either property damage (PD) or bodily injury (BI).

Commercial Property

Commercial property insurance covers your building, everything in it and just outside of it, including:

  • Computers
  • Furniture and equipment
  • Exterior signs
  • Fence and landscaping
  • Important documents
  • Inventory
  • Others’ property
IT open space office. Computer Work Stations. Office Workplace with windows.

Professional Liability

Professional liability covers you from damages caused by errors in job performance. If damage occurs as a result of the way you did your job or neglected to do your job, this is not covered by general liability but by a professional liability policy instead.

Essentially, professional liability coverage protects against damage from errors or omission in performing your professional services or doing your trade.

Commercial Auto

Commercial auto insurance covers the vehicles used in the performance of a job or any business-related automobile travel or transport. It also covers property damage and bodily injury caused to others involved in a commercial vehicle accident.

Commercial Umbrella

Just like a personal umbrella policy, commercial umbrella policies increase liability limits for a business and offer more risk protection. It isn’t possible to predict the amount that might be awarded to the winning party, an amount that you would be responsible for paying after an accident.

Employment Practices Liability

Employment practice liability protects a business owner from any wrongful acts that occurs during the employment process. It can also occur during claims of misconduct or inappropriate employment practice. These policies cover businesses from liability any time workers claim their legal rights have been violated by the company.

The most common kinds of claims include: wrongful termination, sexual harassment, emotional distress, invasion of privacy, discrimination of any kind, and retaliation. Additionally, these policies also cover claims of failure to promote, deprivation of career opportunities, defamation, wrongful discipline, negligent evaluation, and mismanagement of employee benefit plans.

Workers’ Compensation

Workers’ compensation insurance, aka. as “workers’ comp,” is insurance carried by a business or company that covers the medical expenses for employees that are hurt while at work. The coverage limits take care of Loss of consortium. Loss of consortium is the loss of companionship, comfort, sexual relations or the ability to bear children. It’s any kind of emotional or relationship loss that occurs because of the accident.

Cyber Liability

This type of insurance is designed to cover both liability and property losses that may occur because a company is involved in online and electronic activities and collects the sensitive personal and financial data of its customers. electronic activities and collects the sensitive personal and financial data of its customers.

Business Income Insurance

Business interruption insurance is a type of insurance that covers any loss of income that a company suffers after a loss or disaster.

The income loss can be due to the rebuilding process afterwards. This insurance covers any income losses that were lost because the business was closed.

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