What is commercial building insurance?
Commercial buildings are built for commercial use. For example, you may own a gas station or auto repair shop, where your business takes up a lot of the space but the building and equipment are not designed for residential use. A commercial building can be similar to an apartment building, though this is less common. Generally, however, commercial buildings are large enough to take up a lot of space. A commercial building is likely to be a private business that employs many people. The businesses generally purchase a few policies for a wide range of services, since it’s usually cheaper for them to get a package that includes everything than for each business to pay separately for things that require only one.
Who needs commercial building insurance?
Commercial building insurance is generally required if you own a property that is rented out for business purposes. This could include hotels, restaurants, retail stores, factories, warehouses, or any other business-use property that is not a residence. This type of insurance is not available for individuals who live in their commercial buildings. Commercial building insurance may be required in order to keep your business competitive. For instance, if you are renting out a banquet hall, you may want to protect against a large party that may ruin your revenue by having to be shut down for several hours, or if a fire starts in the basement or elsewhere.
Who may offer commercial building insurance?
Commercial building owners
According to the National Association of Insurance Commissioners (NAIC), building owners can pay $650 per year for commercial building insurance. Depending on the area and type of building, this can be extremely expensive. Building owners need commercial building insurance if they own a building with multiple tenants or if they do business in risky areas. For example, if you own a high-rise building in an urban center, you may need commercial building insurance to protect your building against natural disasters.
Commercial building operators Small to medium-sized businesses are often the ones who pay for commercial building insurance. These are the businesses that require quick repairs, but they also don’t have the money to regularly upgrade their equipment and facilities.
Commercial tenants while not always the case, a large majority of commercial buildings in North America are residential buildings that have been subdivided and used for commercial purposes. It can be difficult to get commercial insurance for the residential property if the building was built for residential use in the first place. Commercial buildings may also include apartment buildings or student housing. General liability, limited property coverage, and errors and omissions policies are common commercial building insurance policies. If the property is leased, then a tenant insurance policy is probably a good idea. Business owners If you own a small business, you may be tempted to buy commercial property insurance for your retail operation or your home office.
Commercial building insurance Who can offer it?
As a general rule, commercial buildings are owned by large corporations or businesses with extensive investment. Therefore, commercial building insurance is most commonly found on the top floors of skyscrapers or multi-tenant commercial buildings. What does commercial building insurance cover? There are a few different types of commercial building insurance available to those looking to protect their business, including general commercial building insurance, casualty insurance, and specialty insurance. General Commercial Building Insurance If you’re not sure if commercial building insurance is right for your building, the best way to figure it out is to consider its primary purpose. Are you currently underwriting any contracts in this space, or have you received a claim?
Conclusion: Commercial Building Insurance is a major undertaking, so you shouldn’t expect to receive a quote from an insurance agent in less than five minutes. However, even if you have a lengthy list of issues to address, you should be able to get a good idea of what your insurance company will pay you for. Know your limits. Once you know what you will and won’t be willing to pay for, you can narrow down what type of building insurance you may need. Have a flexible budget. Finally, you should have a specific amount of money that you’re willing to pay per year to keep your building protected. Taking time to consider and evaluate all your options will give you a better idea of what you need and what you can afford.
For a Free Commercial Building Insurance Quote Call Platinum Insurance and ask for Joe, Joe is an Independant Agent at Platinum Insurance and is also the Owner. Feel Free to call him anytime @ 1-833-299-2100, or visit Platinum Insurance on the web at www.insurewithplatinum.com.