Commercial property coverage protects the physical assets of your business. Whether it is a small mishap such as minor wind damage or a major event like a fire, the effect on your business can be huge. Following are some things to consider when reviewing your commercial property policy. We are happy to put our expertise to work to conduct a comprehensive review that will make sure your investment in your business is protected. Just let us know how we can help!
• Building Coverage:
Provides coverage for the building and permanently attached equipment. The amount of coverage should be equal to the replacement cost of the building. If you are a tenant you may be required to insure the building as part of your lease agreement.
• Tenant Improvements and Betterments:
Provides coverage if you are a tenant for improvements you make, at your expense, to the landlord’s building and tenant improvements and betterments are generally permanently attached additions. Installed kitchen equipment, hoods, signs, fixtures, alterations, etc. are good examples. The amount of coverage should be equal to the replacement cost of the improvements.
• Business Personal Property:
Provides coverage for your business property, furniture, computers, inventory, stock, and other types of property you own that are not permanently attached. Coverage amounts should be equal to 100% of the replacement cost of all business personal property.
• Business Income/Extra Expense:
Provides coverage for your lost income in case your business must close due to a covered claim. An example would be a fire that causes extensive enough damage that you cannot operate until the damage is fixed. This coverage also pays for the additional expense you may incur if you decide to continue some or all of your operations at an alternate temporary location. This coverage is generally for a specific period of time as opposed to a dollar amount limit. Usually 12 months or until the damage is fixed, whichever is first.