Commercial property insurance insures a wide range of damages related to your property due to a covered cause such as fire, lightning, explosions, storm, boiler and machinery, loss of Income, inland marine, and crime. Natural hazards such as earthquakes and floods are typically not covered causes unless these perils are added on separately to your policy.
In most cases, every business generally requires certain types of insurance coverage as follows:
- Equipment Breakdown Coverage
Coverage for loss due to mechanical or electrical breakdowns of nearly any type of equipment, including photocopiers and computers. This coverage applies to the cost to repair or replace the equipment and any other property damages that results from the equipment failure.
- Business Income Coverage
Coverage for protection against loss of income or profit, in which a business has suffered a property loss or damage from a covered peril. As such this coverage is also known as Business Interruption Insurance and generally covers payroll, rental income and other expenses.
- Ordinance and Law Coverage
Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings. Older structures that are damaged may need upgraded electrical; heating, ventilating, and air-conditioning(HVAC); and plumbing units based on the local building code requirements.
Premium for commercial property insurance is largely dependent on the entire value of your business assets. Other factors that determine your premium are based on construction type, occupancy, fire protection, security, and exposure to fire and theft.