Commercial Property Insurance and Additional Coverages

September 14, 2020

One of the most common types of business insurance, commercial property provides a wide range of coverage for buildings and contents such as, inventory, equipment, tools and more.  Losses from fire, break-in, vandalism, windstorm and other natural or manmade disasters are examples of what is typically covered on a standard policy, a separate policy, or through a coverage extension/rider.

A basic commercial property insurance policy may be all you need, although the types of coverage can vary between different insurance companies.  As an independent broker, The Armstrong Company Insurance Consultants can help you determine the type of insurance policy and range of coverage that is best suited for your business.

What’s covered?

  • Building – Do you own a commercial building?  If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building.
  • Business Personal Property – Business personal property insurance covers property at a specified location for furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an Inland Marine Policy (equipment or installation floater).

Additional coverages to consider

  • Business Income (Business Interruption Coverage) – This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed resulting from a covered loss. It applies while the premises are being restored because of damage from an event, such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. The Armstrong Company Insurance Consultants strongly recommends that all businesses maintain this coverage.
  • Boiler Machinery Insurance or Equipment Breakdown – This type of insurance provides coverage for loss caused by mechanical or electrical equipment breakdown, including damage to equipment.
  • Crime Insurance – Crime insurance is insurance to manage the loss exposures resulting from criminal acts such as robbery, burglary and other forms of theft.  This type of insurance is also called “fidelity insurance”.
  • Electronic Data Processing (EDP) – EDP coverage is a separate property item specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.
  • Earthquake Insurance – Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property.  Most commercial property insurance policies do not cover earthquake loss.
  • Flood Insurance – Most commercial property policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from resulting damage. Check your current property insurance policy to be sure you are covered for flood losses. If you’re not certain or the policy is not clear, just ask The Armstrong Company Insurance Consultants to review your coverage.  We’ll help you find the best solution.
  • Wind Insurance is usually offered in the form of a rider on a standard casualty insurance policy through the extended coverage endorsement and covers damages caused by wind when the standard casualty policy excludes the coverage.
  • Named Windstorm Insurance is a special type of property-casualty insurance that protects policyholders from property damage caused by windstorms that are classified as Numbered or Named Windstorms. Numbered windstorms usually start off the coastlands as tropical depressions. Named windstorms are the developed storms that fall into the tropical storms to hurricane classifications. The difference in these coverages range in price, deductible amounts and coverage limits.

The Armstrong Company Insurance Consultants understands the business insurance needs of our customers.  The right coverage for you is unique – contact us at 866-990-9286 or Request a Quote online today to find out how to protect your business and your future with the right insurance.  We are here to work for you!

The Armstrong Company Insurance Consultants  (License #0440075)