Insuring your commercial building is an important step if you are a business owner. It is one of the biggest, most costly investments you will ever make. You need to have the right type of coverage in place if you plan on keeping your business moving forward if anything disastrous should ever happen. Working with your insurance agent will help you find the right policy with the right amount of coverage to keep your business financially secure.
How Much Commercial Property Insurance Is Enough?
Insuring your commercial property for its value instead of its replacement cost can be a devastating mistake in the event of an unfortunate disaster. In most cases, its “full value” is much less than what it would cost to replace your building if it was lost in a fire or damaged heavily by a storm. Instead of risking financial ruin by insuring your company for its value, you can insure it for its replacement cost and simply choose a higher deductible. While you will pay a little more if you need to meet the deductible after a claim, the overall savings will be apparent if you lose your building and have to replace it.
What Does Commercial Property Insurance Cover?
Most commercial property insurance policies cover your building as well as its contents. In addition to the building itself, you can expect the following items to be covered:
- Any inventory
- Equipment (machinery as well as office equipment)
- Furniture
- Records of any kind (accounting, legal, operations, human resources, etc.)
- Satellite dishes
- Signage
- Landscaping
- Fences and enclosures
- Other peoples’ property that may have been damaged
Knowing what is covered will help you to determine just how much insurance you should purchase.
What Factors Determine Business Insurance Rates?
Several factors go into determining your commercial insurance rates. One of the biggest factors is your location, especially if you live in a high-crime area. The type of business you run will also be a determining factor. Individuals who run a service-oriented business may pay less than a company that deals in electronics or valuable jewelry and antiques. The building itself and how it is constructed also play into how your rates are determined. Another factor that could greatly affect your insurance premiums is any security measures you have taken. Installing a security system or hiring a security company to patrol the area are valuable forms of protection.
When it comes to purchasing the right type of commercial insurance, you need to speak to professionals. If you have any questions that require immediate answers to help make an informed commercial insurance purchase decision, contact the experts at J. Archer Insurance Group today. We can guide you through all the steps necessary to build a customized insurance policy based on your unique business needs.
