What Is Commercial Property Insurance? Do i Needs It?

Commercial Property Insurance

Definition: Commercial Property insurance is a type of business insurance policy that covers/protects everything related to the loss and damage of a company’s property due to various events such as fire, smoke, wind and hail storms, natural disasters like flood, Hurricane, property vandalism and civil disobedience.

The definition of “property” in this case is quite broad and includes everything like company buildings, computers and other gadgets, company papers, lost income, business interruption and money.  Each of these commercial properties can be damaged for one reason to the other.

In cases of natural disaster toolkit, please read this article and PDF file on Business Insurance.

Type Of Commercial Property Insurance

In business insurance, Property insurance policies are made up of two basic types:

  1. All-risk policies: All-risk policies is a form of property insurance that covers a wide-range of incidents and perils except for those noted in the policy; the all-risk policies mostly cover business risks faced by the average small business establishments.
  2. Peril-specific policies: Peril-specific policy is a form of property insurance policy that covers losses from only those perils listed in the insurance policy. This means that anything that s not listed in the policy will not be covered under this condition. Examples of peril-specific policy include fire, smoke, flood, crime and business interruption insurance, etc. Peril-specific policies are usually purchased by policy holders when there is high risk level of peril in a given area, like area prone to natural disaster, theft, etc.

You can in touch with your insurance agent or broker about the type of business property insurance that best suit your small business.

Let us know in the comment section if you have any other question, suggestion or correction to make.

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