Commercial insurance property is insurance that is used to cover any type of commercial property. This insurance policy protects commercial property from unexpected perils such as theft, fire, floods, riots, storms and natural disaster occurrences. This type of insurance is carried by a variety of businesses. They include manufacturers, retailers, service oriented businesses and non-profit organizations.
Commercial property insurance plans range from policy to policy, but are categorized by the type of event leading to a loss. Small and medium business property insurance is one of the most crucial investments ensuring the future of businesses. Some of the important business aspects that commercial property insurance helps protect include buildings, inventory, furniture and equipment and other property.
A complete business property insurance plan is one of the smartest investments individuals can make for their businesses. It protects the costly, physical assets of the company. Most business owners know that fire or severe storms can shut down a business for a significant amount of time. But with a comprehensive business properties insurance plan, businesses have a back-up plan in-case of occurrence of an event leading to massive loss.
Commercial property insurance plans vary according to different policies though they essentially categorized by type of event leading to a loss and by what specifically is insured. Basic property insurance usually covers losses caused by fire, acts of vandalism and theft. Additional coverage can be added for earthquakes. This insurance plans pay for losses based on the replacement cost of the item or is actual cash value. Replacement cost refers to repair, replace or rebuilt property on the same premises, with comparable materials and quality without deducting accumulated depreciation. Actual cash value is the cost to replace it with new property of similar style and quality, less depreciation.
There are two types of commercial property insurance; buildings insurance and contents insurance. Building insurance covers the actual cost of repairing or rebuilding your business premises if destroyed. Buildings insurance is not required by law in most nations and doesn’t cover general wear and tear and acts of terrorism. Cover for such events require a special type of cover. Contents insurance covers the cost of replacing business stock or equipment if it is damaged. There are two types of contents insurance policy for business equipment. Indemnity policies take wear and tear into account, replacing items at their current value while replacements as new policies replace an item that has been damaged beyond repair.
Additional cover for businesses can be critical in ensuring continuity of the business. A good example is the business interruption insurance cover. Such a cover helps the business when the policy holder is not in a position to run the business.it is usually offered as an extra when a person purchases buildings or contents insurance. Business interruption insurance covers any shortfall in pre-tax profits resulting from an event which causes loss and any increased costs in running your business as a result of the event.
Commercial property insurance provides an ultimate cover that ensures survival of businesses.