Most future business owners are acutely aware of the fact that they’ll have to spend money to make money. What they don’t realize, however, is that some of this money is going to be spent on insurance coverage. There are several types of insurance a company will need, but Michigan commercial property insurance is among the most important. Without this type of insurance, a business owner can lose everything to just one detrimental disaster, so it is vitally important for owners to have this coverage and know what their policy will cover.
What is Commercial Property Insurance
A commercial property insurance policy is taken out by business owners to protect their company against real property loss. ‘Real property’ in this case usually only refers to a company’s buildings and certain items within them. These policies usually kick in when a business experiences loss of real property due to smoke, fire, vandalism, hail storms, civil disobedience or wind storms. Policies may vary, so it is important for business owners to fully understand their specific policy.
Commercial property insurance covers many of a business’s assets. These assets can include buildings, heavy equipment, completed additions, and fixtures. Things that are considered permanent in a building are usually covered. Commercial property insurance comes in two types: all-risk and peril specific. All-risk policies cover a wide range of events that could cause loss. Peril specific policies only cover certain incidents. A company located in a rough neighborhood, for example, may need a peril specific policy related to crime.
What Commercial Property Insurance Won’t Cover
Different policies will cover different incidents, and this is especially true when looking at policies between different localities. This makes it vital for business owners to discuss their specific policy with their insurance agent. There are actually policies that will only cover a company’s buildings and things that are considered permanent within it, such as fixtures and walls. This may leave companies reeling when they learn that their policy won’t cover office furniture and equipment.
Some policies also fail to cover damage caused by events such as earthquakes and floods. This can give business owners a rude awakening if they’re in an area that floods easily or on a fault line. Even policies that do provide coverage for the aforementioned events may not cover outdoor property like company vehicles or fences. Coverage for these specific things, however, usually can be added to a policy.
There are also a few specific inclusions in a policy that a business owner may wish to inquire about. Outdoor property coverage, for example, may be added to cover damage that occurs to satellite dishes, fencing, plants, and signs. Coverage can also usually be added for pollutant cleanup and debris removal, which may be beneficial since many disasters often lead to these necessities.
Commercial property insurance is meant to ensure that a company can survive the occurrence of great loss, regardless of whether it is natural or manmade. The costs related to cleaning, rebuilding, repairing, and replacing company property can bankrupt a business if it doesn’t have proper commercial insurance. It is always important, however, for a business owner to discuss what is covered with his agent and fully go over his policy. This can make the difference between surviving a catastrophe and losing everything.
Give us a call at 800-220-5582 to discuss your specific commercial property insurance needs today!