As a business owner, you know you need commercial property insurance. It is a sure-fire way of protecting what you have built. With so many policy types available, you may not know what this coverage plan entails. Below are policy basics that every company needs to know.
What Is Commercial Property Insurance?
This coverage plan is designed to protect buildings and contents from catastrophic loss. It’s ideal for various commercial enterprises including nonprofit organizations, service-oriented businesses, retailers and manufacturers. It is recommended for anyone who leases, rents or owns a business building.
What Does It Protect?
A company can encounter any type of hazard such as a fire. Without proper coverage, you can suffer a major financial loss trying to recover from the incident. This policy protects against the following types of perils:
• Natural disasters
What Is BOP?
Commercial property insurance doesn’t cover everything. This is why many businesses purchase a business owners policy or a BOP. It is a comprehensive plan covering damaged items such as:
• Outdoor fences
• Commercial vehicles
• Outdoor signs (detached from the building)
If contents inside a building are ruined, BOP covers those as well. These items include computers, machinery and inventory.
The commercial property insurance you buy depends on your specific needs. An agent can review your firm’s risk exposure and tailor a policy for your situation.