Types of Commercial Property Insurance and Why Your Business Needs It

Regardless of size or sector, your business likely relies on certain physical assets to conduct operations and maintain functionality. Even in the digital age, when many tasks have moved to cyberspace and are now completed online, companies depend on computers, servers, hardware and other electronics. Understanding how your insurance policies cover various tangible property is critical, as misunderstandings can lead to being underinsured and, subsequently, unexpected out-of-pocket losses.

What Does Commercial Property Insurance Cover?

Commercial property insurance, also known as business property insurance, is a core component of many organizations’ risk management and loss control measures. These policies can vary in their exact capabilities and specifications, but typically they may cover many types of property, including the following:

• Buildings

• Equipment

• Electronics

• Tools

• Furniture

• Signage

• Landscaping

• Inventory

If the aforementioned assets are damaged by covered perils, such as fires, vandalism and burglary, you can submit a claim against your commercial property insurance and potentially receive aid for repair or replacement costs. Conversely, without appropriate coverage, you could lack the ability to recover from incidents and face potentially disastrous fiscal implications.

What Other Types of Insurance Might I Need?

While commercial property policies may cover many assets against several common perils, they also typically have strict limitations. Consider how the following types of policies may address coverage gaps:

• Inland marine insurance can be critical if you transport or store assets off-site, as commercial property insurance coverage typically ends at your business’s property lines.

• Commercial auto insurance is legally required and financially crucial, as commercial property insurance does not typically cover motor vehicles.

• Equipment breakdown insurance may be necessary if your business relies on certain machines and tools, as it can cover losses caused by breakdowns and malfunctions, which are typically excluded from commercial property policies.

• Flood insurance may be necessary to address these frequent natural disasters, as commercial property insurance typically excludes them.

We’re Here to Help

Contact The Kimberlee Agency in Roland, Oklahoma, today to learn more about covering your company’s property against potential losses.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.