It's incredible how fast an unexpected event can turn the world upside down. That's why business insurance is crucial, even when you think those worst-case scenarios are unlikely to happen.
This article will explain how to protect your business with the right commercial property insurance. You'll learn about the different policies available and how to find the perfect coverage for your business in Rockville, Maryland.
Types of Commercial Insurance Policies
Commercial property insurance exists to protect your business from several risks. That's why you'll see more than one type of insurance. Here are the main ones.
- A Basic Form Policy, which protects against major problems like fire and theft
- A Broad Form Policy, which includes basic coverage plus extras like water damage and structural problems
- A Special Form Policy, which provides the most comprehensive insurance cover
Each comes with different costs. It's essential to get the best coverage you can on your budget.
The Type of Coverage on Offer
When choosing insurance for commercial real estate, your first task is to examine the coverage offered. You want a policy that aligns with your needs. Here is the typical risk coverage you should look for on a policy.
That may be basic coverage, such as fire or lightning strikes, or more extensive coverage, like structural damage. It will cover the entirety of your physical property, including walls, roofs, floors, and outbuildings.
Suppose you have a fire in your main building. A problem like this could mean closing your business for weeks or months.
That's why commercial property insurance also provides coverage for business interruption. It will compensate you for lost income.
Liability cover protects you against claims. For example, if you are a commercial landlord, you should get liability cover for injuries on your property.
Factors That Will Influence Your Premium
When getting quotes for commercial real estate insurance, it's worth understanding specific factors that could increase your premium.
For example, your location will have significant sway on your insurance costs. If you are in an area with a high crime rate or flood risk, expect your insurance costs to reflect this.
Your building construction will be another crucial factor. The material, age, and condition of a building will influence the risk of a problem occurring.
However, you can lower your premium by improving your property, for example, by adding fire safety measures.
Your business type will also shape your premium. High-risk businesses with valuable equipment will need more expensive insurance coverage.
Common Exclusions in Property Insurance Policies
When reviewing policies, take the time to note the small print and any exclusions listed. These will vary depending on the policy, and exclusions could cover a range of things, such as war, earthquakes, and floods.
If you have specific risks - for example, if your property resides in a flood zone - you may want to seek custom policy arrangements.
Commercial Property Insurance: Protecting Your Business
Commercial property insurance is more than a tick in the box. It's your business's safety net and will keep you operating should the worst happen.
For more support with your commercial building in Rockville, Maryland, contact our team at PMI Property Management to learn about our property management services.