Considerations When Taking Commercial Property Insurance
Commercial property insurance may not be mandatory, but it is a must-have for any business. The coverage protects your building, business equipment, and machines from various perils. The extract below contains insights to guide you as you apply for commercial property insurance.
Ensure Adequate Coverage
It would be disheartening if you learned the insurance company does not cover an event after its occurrence. The secret is to assess the fine print of the insurance coverage to establish the insured property and risks. As a rule, negotiate these conditions and consider add-ons to ensure your business is adequately protected. For instance, check whether the policy covers improvements you make to your commercial property, leased premises, stock, and the personal property of other people on your premises. In some cases, the coverage could have limits. For instance, some insurers will only include other people's property if it is located within a specified distance from your premises.
You also need to check the insured perils. Conduct a risk assessment to determine the risks your building and commercial property are exposed to. It could be fires, storms, riots, hail, leaking drainage systems, vandalism, and theft. In most cases, the insurer could exclude floods, terrorism, and war from the cover. However, you should consider an add-on if your business is exposed to these risks.
Some commercial property insurance policies have a loss of cause form. If your policy has this condition, consult with the insurer to understand the various terminologies. Typically, the special cause of loss form covers all risks unless excluded. On the other hand, the basic or broad cause of loss form excludes all risks unless included.
Work with a Reputable Insurance Company
When applying for commercial property insurance, the rule is to work with a reputable insurance company. So, how do you assess an insurer's reputation? Start by interviewing some of its clients to determine whether the company pays claims. Moreover, the claims process should not intimidate clients or subject them to bureaucracies that slow down the process or impose additional costs on the client. How does the insurer treat its clients? Consider companies with friendly customer care services. For instance, the insurer could conduct regular assessments to ensure you have adequate coverage.
When taking commercial business insurance, assess the coverage and work with a reputable insurer. Moreover, hire an insurance broker to help you choose a suitable cover, interpret the technical terms, and negotiate the premiums.
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