Commercial Property Insurance
Commercial Property Insurance helps businesses pay for the repair or replacement of buildings, structures and contents that are damaged or destroyed. This may be due to storms, fires, theft of other events in the policy.
Business Owners can buy insurance if they have real property or if they rent or lease a building. If you rent a property, the building owner policy probably will not cover the contents of the building that you are renting. You will need to purchase your own policy to insure your property on premises. The cost is usually significantly less than the building coverage because the policy will only cover contents, not the building itself.
Commercial property policies provide for the cost replacement coverage, real cash value coverage, or a combination of both. Replacement cost coverage will pay to replace your property with new property of similar quality and up to a maximum dollar policy. A real cash value policy will pay the replacement cost of assets less depreciation due to age and normal wear. Although replacement cost coverage is more expensive than actual cash value coverage, you may better to ensure that your business recovers completely after a significant loss.
Not all commercial property policies protect the same risks
. Some policies will cover only those risks specifically mentioned in the policy while other policies will cover all risks. You may purchase additional coverage for special policies.
Commercial property policies in Texas are usually in these categories:
- Basic policies typically cover common risks, such as damage from fire, lightning, wind, or cars.
- Broad policies typically provide basic form coverage plus coverage for additional perils, such as water damage, structural collapse, sprinkler leakage.
- Special policies cover against all types of losses except those the policy specifically excludes.
In Texas, commercial property policies are not standard and may vary from policy holder and by policy.
Commercial Multi-peril (CMP)
policies combine different coverages, such as property, liability, marine, and vehicle, to have full coverage in one policy. These policies typically have lower premiums than buying coverage individually.
Business owner policies (BOP
) is a common type of commercial multi-risk policy primarily for small businesses. A BOP policy combines property and liability coverage in one.
Here are some typical commercial property coverage:
- Building occupied by the insured coverage insures a building that you regularly use but not own.
- If added to your policy within a specified time period, new constructed buildings coverage insures a new building.
- If the property is on your premises, employees' personal property coverage will insure the employees' personal property against loss .
- Off-premises property coverage covers your property that is outside the area. Some policies may not cover off-premises property, or may provide limited coverage.
- Business interruption coverage pays for the actual or projected loss of income if the loss from a covered risk hinder normal business operations.
- Valuable papers coverage provides limited coverage of business documents and other important information.
- Machinery coverage covers boilers, air units, water heaters, and similar machines. Machines specifically listed in the policy are usually covered.
- Inland marine coverage can insure your valuables that are being shipped by land, air or water.