Commercial Property Insurance Considerations

Commercial property insurance is the coverage that you should consider as part of your overall risk management strategy. Not that you need to insure each and every property item that you have an interest in, but it is prudent to review a property checklist to determine which property exposures can adversely affect your organization and thus some risk management principles need to be applied to this property that is been identified.

Usually the largest property item to consider is that of real estate. This can entail land that has been developed or land that is rented to others or land that is vacant and/or an occupied. Your building or buildings would be included under the real estate category.

Contents are the next obvious item to consider. You might be a renter and not have any real estate exposures per se but most businesses have some contents. Those content exposures can take on many forms. You obviously have your own business personal contents that you may or may not want to insure. You might also have the personal contents of yourself and your employees while at the business workplace. Contents can also take the form of raw materials, work in process, and finish goods and services. The finish goods can either be on your premises, in transit, in storage, or at the delivery site of your client. Contents can fluctuate during the manufacturing process as well as contents can fluctuate during seasonal peaks and valleys.

Tenant improvements and betterments, also referred to as TIB . Most tenant’s improvements and betterments become part of the building structure and are not mobile enough to be taken with the tenant when they leave. Thus, while being a tenant has an exposure to loss because of the money they have sunk into improving and bettering their tenets space. When they leave they might not be able to take that value with them and the coverage would then be deleted.

Normally boilers and machinery coverage is found in industrial complexes. They have unique exposures in that the damages to boilers and machinery are typically internal, or combustible damages that tend to occur. These types of unique coverages are usually limited and excluded on the typical property policy. You need the special boiler & machinery coverage.

Electronic data processing equipment, media coverage, and computer equipment is another category of contents to consider insuring. This type of contents can be extremely mobile such as with iPhones, iPads, laptops, etc. They have their own unique exposure and custom coverages that need to be tailor-made for your type of risk. Many times the loss of your electronic equipment can besides the actual physical valuable loss, create loss of income from being down and unable to function without the electrical equipment. Usually insuring this type of contents for the hardware, software, and loss of income is usually what is needed to provide complete coverage for this type of contents. The hard drives and servers for all your electronic devices are all subject to virus attacks and can be disabled and can be rendered useless due to a virus. The appropriate coverage needs to be in place for this type of contents coverage of electronic data processing equipment. Usually the property insurance coverage is not broad enough and you need EDP, electronic data processing, coverages.

Commercial Insurance Quotes