Commercial Property Insurance
Commercial Property Insurance Information
What is commercial property insurance?
Contractors have a lot of physical assets, including buildings, tools, specialized equipment, outdoor signage and inventory. If a fire, storm or thief were to damage or steal these, you may have to go through a long and expensive recovery process before you could start back in business. It could be devastating.
Without adequate property coverage, approximately a quarter of businesses fail during the first year following a disaster or theft. Such events result in hundreds of billions of dollars in paid claims. Most businesses cannot afford such a substantial loss. Commercial property insurance can assist with repairs, replacements and lost income during a tumultuous time like a natural disaster or theft.
How does commercial property insurance help?
Commercial property insurance helps businesses survive various situations. These situations include the following:
- Repair or replacement: Coverage can extend to assets that are lost, damaged or stolen due to fire, storm, hail, tornado, theft or vandalism. Damage from flooding and earthquakes are excluded.
- Lost income: Income loss results from a business’ inability to run as usual following a disaster. This coverage can offer lost income relief, along with the expenses associated with recovery.
- Temporary location: A devastated building may no longer be able to support daily operations. Coverage can extend to funding a temporary location while repairs are being made.
What is builder's risk insurance?
Builder's risk insurance is a very special type of property insurance that's designed to insure and protect buildings and materials that are in the course of construction against such things as vandalism, theft, fire, storm damage and many other perils NOT covered by other policies. The policy itself can be issued in the name of either the builder or contractor or in the name of the property owner, such as in the case of a remodel. Not all builder's risk policies are created equal and it's important to get one that's appropriate to the property and the work being performed.