Commercial building insurance ensures coverage for commercial buildings against loss due to theft, vandalism, fire and natural calamities. Some types of commercial building insurance cover only the property’s structure, while others offer cover for furniture, equipment and personal injury or death that could occur on your premises.
Types of Commercial Building Insurance
Commercial building insurance is generally sub-divided into two types:
Named peril policy: Named peril policy covers the property in the event of unforeseen calamities specifically mentioned in the policy document. A named peril policy might cover damage due to fire and explosions, excluding floods and earthquakes. For instance, if your policy covers only fire and explosion damage to the building, you cannot claim for the damage that occurs from earthquakes and other events.
All risk policy: These policies cover every kind of calamity, except for those specifically excluded from the policy. This policy also covers damage and loss caused by theft and robbery.
Depending on your circumstances, you might also want to avail some specific insurance as well. There are a number of extra options available under commercial building insurance, such as liability insurance, commercial content insurance and unoccupied commercial property insurance.
Liability insurance covers all damage caused to third party on your premises. For instance, if a person or his property is hurt or damaged on your premise, liability insurance will compensate for legal and medical expenses. Liability insurance cover is restricted to the building alone while commercial content insurance safeguards the contents in a building.
If you lease commercial property then you need unoccupied commercial property insurance. This insurance covers your loss of rent if there is no business operating from you premises. Some insurance companies also offer commercial combined policies to protect your stock, furniture, fittings, goods in-transit, liabilities and business interruption from unexpected calamites. Such policies are usually cost effective as compared to separate policies to cover different events. Combined policies, however, limit coverage to events such as fire, explosion and earthquake.
There are a number of companies that provide commercial building insurance. To get the best quote, first check the things that need to be insured. The internet is a very useful tool in searching for the most appropriate insurance for your premises.