Is your commercial property protected?
Every day, you work to ensure that your business stays up and running. From serving your customers and offering your products and services to providing your employees with jobs, your business is a powerhouse of activity. That is why it is important to make sure your commercial property is protected: accidents happen, and the last thing you want to go through as a business owner is being out of commission and under the wrong policy. With a custom Property Insurance policy from Boynton Insurance Group, you can ensure that the building itself and the personal property of your business are protected from minor accidents or major financial loss. Our insurance specialists can help you create a policy that keeps your small-to-medium-sized business insured from top to bottom by covering such items as:
Your building
Interior items (desks, furniture, etc.)
Outdoor signs on your property
On-site equipment
Inventory
Other items that are typically found on a Property Insurance policy include Builder’s Risk insurance and Equipment Breakdown coverage. Builder’s Risk protects any materials or equipment from damage or loss sustained during construction or remodeling, while Equipment Breakdown, or Boiler and Machinery, keeps any electronic, electrical, or pressurized equipment on your premises insured from breakdowns or loss.
Key Coverage Areas
1. Building Coverage -
Protection for Structures: This coverage protects the physical building or structures your business operates from, including permanent fixtures, walls, roofs, and foundations. If your building is damaged by a covered peril, commercial property insurance will cover the repair or replacement costs. - Coverage for Owned or Leased
Property: Whether you own your building or lease it, this coverage can protect your financial interests. For leased spaces, improvements you’ve made to the property may also be covered.
2. Business Personal Property (BPP) Coverage -
Protection for Business Contents: BPP coverage protects the physical contents of your business, such as furniture, equipment, inventory, and supplies. If these items are damaged or destroyed by a covered event, your insurance policy will help cover the cost to repair or replace them.
Coverage for On-Premises and Off-Premises Property: Many policies include coverage for items located on your business premises, as well as items that are temporarily off-premises, such as equipment taken to job sites or inventory in transit.
3. Inventory Coverage -
Protection for Stock and Goods: Inventory coverage is particularly crucial for retail businesses, wholesalers, and manufacturers. It covers the cost of goods or stock that are damaged or lost due to a covered peril, ensuring that you can replace inventory and minimize disruption to your business.
4. Business Interruption Coverage -
Income Protection: If a covered loss causes your business to temporarily close or significantly reduces its operations, business interruption coverage can help replace lost income. This ensures that you can continue to pay expenses like rent, payroll, and utilities while your business recovers.
Extra Expense Coverage: This part of business interruption coverage reimburses you for additional costs incurred to keep your business running during the restoration period, such as renting temporary space or expedited shipping for replacement equipment.
5. Equipment Breakdown Coverage -
Protection Against Mechanical Failures: Equipment breakdown coverage helps cover the cost of repairing or replacing essential business equipment that breaks down due to mechanical or electrical failure. This can include HVAC systems, production machinery, computers, and more. Coverage for
Associated Losses: In addition to repair or replacement costs, this coverage can also address income loss and spoilage of goods caused by equipment failure.
6. Coverage for Natural Disasters -
Protection Against Specific Perils: While standard commercial property insurance covers risks like fire, theft, and vandalism, it may exclude certain natural disasters such as earthquakes or floods. Specialized endorsements or separate policies can provide protection against these events.
Flood Insurance: Businesses located in flood-prone areas may need a separate flood insurance policy to cover damages caused by flooding, as this is typically not included in standard commercial property policies.
Earthquake Insurance: Earthquake coverage is often excluded from standard policies and must be purchased separately if your business is in a region prone to seismic activity.
7. Coverage Extensions and Endorsements -
Customizable Protection: Commercial property insurance policies can be tailored to meet the specific needs of your business. Coverage extensions and endorsements can add protection for items like outdoor signs, landscaping, employee belongings, and more.
Ordinance or Law Coverage: This endorsement covers the increased costs of rebuilding or repairing a damaged building to meet current building codes and ordinances, which might be more stringent than when the building was originally constructed.
8. Glass Coverage -
Protection for Windows and Glass Fixtures: This coverage protects against the cost of repairing or replacing broken windows or glass fixtures, which can be particularly important for retail businesses with storefronts.
Why Commercial Property Insurance Is Essential?
Commercial property insurance is essential for protecting your business’s physical assets, which are often critical to its operations and profitability. Without this coverage, a single event, like a fire or major theft, could lead to significant financial losses and potentially force the business to close. By investing in comprehensive commercial property insurance, businesses can safeguard their assets, minimize downtime, and ensure a faster recovery after a loss.
