Commercial Property Insurance

What is commercial property insurance and why does your business need it?

Commercial property insurance is similar to the insurance you take out for your home, the difference is that you are insuring your business properties, this includes your business premises, stock and supplies as well as equipment. A business faces more risks and because of this needs more coverage.

Businesses face risks from crime and theft, damages from unexpected events such as floods and fires and loss of revenue due to these risks, not only from loss of stock but also from business interruption when your business is not able to operate as usual due to damages that have occurred.

Commercial property insurance covers you against these risks and depending on the policy you purchase it can cover business interruption, demolition and rebuild costs resulting from the damages that occurred

Property insurance should not be confused with liability insurance, while a business does need both types, liability insurance covers a different aspect of your business, it is used to cover you for third party instances such as being sued by a third party.

Property insurance can cover much more than you may be aware of, not only does it cover your fixed property such as the actual buildings that house your property, it will cover all of your physical assets such as your stock and products, your equipment and machinery, the glass fittings and much more. The type of property insurance you choose also depends on the specifics of your business, you may choose optional coverage for your property while it is in transit and cover others property while it is in your premises.

Commercial property insurance or building insurance as it can also be known is a must for any business large or small, they type you require depends on the nature of your business and is something that should be discussed with your insurance broker.

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