Commercial Property Insurance
There is so much to consider when starting a business, or when moving home-based business to a commercial location. One of the most important considerations is acquiring commercial property insurance. The experienced team at IPA Risk Management, LLC, in Rochelle Park, New Jersey, understands the risks of running a business and can help mitigate any fears you might have by writing an insurance policy that meets your needs.
Commercial property insurance is important because it helps cover the loss or damage of your property due to fire, vandalism, or theft. This coverage is even more important for small businesses or startups because they usually don’t have the finances necessary to pay for these losses out-of-pocket. We are just a phone call away at 201.797.1084. Schedule an appointment today so you can acquire the necessary coverage to give you peace of mind.
What does property insurance cover?
Property insurance covers a myriad of things related to your business, including the following:
- Equipment, furniture, inventory, supplies, and fixtures damaged or lost in a fire
- Repair or replace stolen, damaged, or destroyed property
- Equipment and property that isn’t yours but is in your care
- The loss of a structure or building
How is commercial property insurance purchased?
Commercial property insurance policies can be purchased in one of two ways: as a stand-alone policy or as part of a Business Owners’ Policy (BOP). A BOP includes general liability coverage and commercial property coverage. On top of it all, there are two types of coverage offered:
- Replacement cost: this type of coverage pays to replace or rebuild equipment or a structure using materials at comparable or lower prices
- Actual cash value: this type of coverage pays the current value of the property or equipment lost, typically replacement minus depreciation
How is cost determined?
Commercial property insurance policies are not a dime a dozen. They must be written based on each individual business’s needs. There are specific considerations that must be taken into account, including the following:
- The value of the property named in the policy
- Where the business is located
- The coverage limits and deductible that you choose
Aside from these factors, you should outline your needs with an insurance broker from IPA Risk Management, LLC. The more you discuss your business needs with a broker, the better he or she will understand what needs to be covered. Talking about coverage and policy options before making a selection will ensure that your business has the right insurance in place should a disaster strike or a lawsuit is filed against the business.
Not all legal risks are covered
You should note that not all legal risks are covered by commercial property insurance. However, this doesn’t mean that this type of insurance policy will not protect you from lawsuits, property damage, or other issues.
It’s important to review the possible legal issues that might not be covered by this type of insurance policy with a member of our brokerage. Some examples of items that might not be covered include the following:
- Vehicles subject to motor vehicle registration
- Money or securities
- Living plants
- Outdoor fences or signs not attached to the building
It’s also possible that you will have to purchase additional policies to cover things like crime, floods, and wind damage. The only way to find out what is covered is by speaking to an experienced member of our brokerage about your insurance needs.
Types of commercial property insurance
There are various types of commercial property insurance policies you can pick for your business, including the following:
- Debris removal
- Boiler and machinery
- Builder’s risk
- Inland marine
- Ordinance or law
- Business interruption
- Fidelity bonds
Business interruption insurance is vital. This coverage protects your business from loss incurred due to fire, flood, or other hazards. The policy will cover the expenses and lost income that stems from downtime caused by a fire, flood, or other hazards. Reimbursement from this insurance policy can be issued for rent, taxes, salaries, and net profits that you would have earned during the time you could not operate.
Purchase commercial property insurance today
Owning a business at a brick-and-mortar location comes with a lot of risks, which is why you should have commercial property insurance from day one. The location of your business, its value, and the coverage limits you desire all play a role in the cost of the policy. Call the office of IPA Risk Management, LLC, at 201.797.1084 today to schedule an appointment with a member of our brokerage.
We are conveniently located in Rochelle Park, New Jersey, and serve the New Jersey, New York, and Pennsylvania region. We are dedicated to finding the right coverage to meet your needs as we strive to build a lasting relationship with all of our clients.