Commercial Property Insurance
Commercial Property Insurance Information
What is Commercial Property Insurance?
Businesses have many physical assets, including buildings, furniture, equipment, and inventory. If these assets are damaged, a business may have to go through a recovery process before their doors can open once more. Commercial property insurance can assist with repairs, replacements and lost income.
Find out what you need to know about flood insurance below.
Coverages
Building
Coverage provided for direct physical loss of or damage to the Building or Structure at the premises caused by or resulting from any Covered Cause of Loss.
Contents/Business Personal Property
Coverage provided for direct physical loss of or damage to the Business Personal Property located in the premises caused by or resulting from any Covered Cause of Loss.
Business Income Endorsement
Provided for the actual loss of income sustained due to the suspension of your business operations as a result of direct physical loss at the premises caused by or resulting from any Covered Cause of Loss.
Extra Expense Endorsement
Coverage provided for the necessary expenses that you incur during the period of restoration that you would not have incurred if there had not been direct physical loss or damage to your property.
Ordinance or Law Endorsement
Provided if the insured building or structure sustains direct physical damage by a Covered Cause of Loss and as a result, the Insured is required to comply with an ordinance or law in force at the time of loss.
Equipment Breakdown / Boiler & Machinery Endorsement
Coverage provided for loss due to mechanical or electrical breakdown of equipment and the cost to repair or replace the equipment.
Inland Marine / Equipment Floater Endorsement
There are two categories of Inland Marine Insurance. One category consists of coverage for specific items, such as equipment, instruments, records or films. The other category consists of transportation of goods.
Tenants Improvement & Betterments
Coverage provided for permanent additions or changes made to the building by the lessee at their expense.
You should know, Flood losses are not covered by your Commercial Property policy.
If your commercial property is located in a high-risk flood area and you have a mortgage from a federally regulated or insured lender, you are required to purchase a flood insurance policy. However, even if you are not in a flood zone, you may still want this very affordable protection for your business assets. Flood insurance includes losses resulting from water overflowing inland or tidal waters, heavy or prolonged rain, storm surge, blocked storm drainage systems, or broken dams or levees. Remember, water has to have damaged two or more properties, or cover at least 2 acres of land to be considered a flood. Also, keep in mind most policies only take effect after 30 days.
Most flood insurance policies are provided through the NFIP but, we do have options for private flood insurance.
What is the NFIP?
The National Flood Insurance Program, administered by FEMA, aims to reduce the impact of flooding on private and public structures. It does so by providing affordable insurance to property owners, renters and businesses and by encouraging communities to adopt and enforce floodplain management regulations. These efforts help mitigate the effects of flooding on new and improved structures. Overall, the program reduces the socio-economic impact of disasters by promoting the purchase and retention of general risk insurance, but also of flood insurance, specifically.
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