property insurance
One of the most important aspects of purchasing Commercial Property Insurance is making sure that you have purchased enough coverage to be adequately protected.

The Basics of Commercial Property Insurance

Your livelihood is dependent on the survival of your business, so it is imperative that you protect it against any potential threat – big or small. For instance, a fire could destroy your business’s warehouse and the contents inside, or a burst frozen pipe could damage important documents and valuable papers. Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing damage.

If self-insuring is not an option to combat these risks of loss, it is wise to obtain Commercial Property Insurance. This coverage comes in many forms to suit your specific needs. Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss.

Types of Commercial Property You May Need to Insure

  • Buildings and other structures (leased or owned)
  • Furniture, equipment and supplies
  • Inventory
  • Money and securities
  • Records of accounts receivable
  • Leasehold improvements and betterment’s you made to the rented premise
  • Machinery/boiler
  • Electronic data processing equipment (computers, etc.)
  • Valuable documents, books and papers
  • Mobile property (construction equipment, etc.)
  • Property in transit
  • Cargo
  • Satellite dishes
  • Property being installed off premises (i.e., customer’s location)
  • Signs, fences, and other outdoor property not directly attached to the building.
  • Intangible property (goodwill, trademarks, etc.)
  • Extra expenses because of loss
  • Business income
  • Business contingency for suppliers

Types of Commercial Property Insurance Policies

Basic Commercial Property Insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage. Should you want to purchase more than basic coverage, you can buy a standard policy that provides coverage for extended perils, such as floods, windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke, civil commotions and vehicles that damage your property. Beyond that, coverage for vandalism and malicious mischief can also be included. An “All Risk” policy covers the most perils that could occur.

Are You Buying Enough?

One of the most important aspects of purchasing Commercial Property Insurance is making sure that you have purchased enough coverage to be adequately protected. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cost value, on the other hand, is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.

Prairie Villa Insurance understands that determining your business’s value is critical, so we are here to help. Contact us today to learn more about our Commercial Property Insurance and loss control solutions to protect your business.


Contact us and one of our brokers will be happy to assist you.

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