Commercial property insurance is designed to cover any business property that one leases, owns or has custody over. While this policy is usually integrated in a general liability insurance, it can also be purchased independently. Regardless of its form, the policy meant to protect commercial property from different types of accidents and natural disasters like fires, hurricanes, tornadoes, water damage due to bursting pipes, vandalism and theft. –Commercial Property Insurance
The ideal commercial property insurance should have sufficient coverage for the policyholder to rebuild or fully repair any damage on machinery, equipment and other fixtures. Ideally, the policy should contain clauses for permanently installed fixtures and improvements. Furniture, product inventory and any other product that is used to conduct business should also be protected. Employees or co-workers who entrust their work related property to their employer should also be protected in the policy.
Policy holders have the option of choosing the type of disasters, accidents and incidents that should be covered by their commercial property insurance policy. For instance, on may choose to have coverage in case of damage resulting from lightening, fires, explosions etc.
As with homeowners insurance, business property should be covered for what it’s worth. To determine this, a valuation should be done to determine the cost of replacement. With such a cover depreciation will not factor in when the property is to be replaced after total damage.
The location of the property and the total value of personal property insured in the policy are just some of the factors which influence the cost of commercial property insurance. You should shop around and compared rates in order to find the best coverage for your property.