Are you thinking about investing in new or better property insurance coverage for your business? If so, it will benefit you to know a little bit more the type of coverage available, what you can get for the money you spend, and what exceptions exist in terms of what is covered.

What is Commercial Property Insurance?

A commercial property insurance policy is designed to safeguard the business property against damage and related expenses. It not only protects against natural disasters such as fire and storm damage, but also problems like plumbing issues and more. Structural damage is typically covered under these policies – and even some higher, business-related expenses and losses may be offset by these policies.

What Does a Commercial Property Insurance Policy Cover?

Damages incurred by the following are typically covered by commercial property insurance:

  • Fire damage
  • Storm damage
  • Physical damage such as vandalism
  • Plumbing, electrical, and other internal, utility, or structural issues
  • Theft and other forms of physical loss from your property

Any part of your business property – including its contents and items on the exterior of your structures, such as outdoor signage – are covered by the payouts provided by these policies.

Some important things to note about coverage with these policies include the following:

  • All items on your business property are covered under these insurance policies unless they are removed from the property. In that case, they would need to be covered by a so-called “inland marine” policy.
  • Floods, earthquakes, and several other specific types of natural disaster are not generally covered by these policies. For that type of coverage, you will need an additional policy as well.

How Much Does it Cost to Insure Commercial Property?

Estimating costs for commercial insurance coverage can be tricky since it depends on a variety of factors. An example figure is the average of $742 annually for one million dollars in coverage enjoyed by many businesses. Your premiums will vary – perhaps drastically – depending on multiple factors, including:

  • How much protection you are looking for.
  • The degree of exposure your business has to risk factors.
  • How many people are typically on-site on your property and how many consumers you generally serve.
  • The location of your property.
  • The age, construction, and overall safety of your property.

For more information about commercial property insurance in Phoenix, contact the local industry experts at Capital Insurance Services.