What is Commercial Property Insurance?

Risk creates scare in any business mind. But since the day insurance has been evolved, corporate world has begun to take a sigh of relief. It provides cover against any kind of risk factor to any business and its assets. Rules and regulations of it are defined according to the nature of the business. Thereafter, you can run your business without fear of encountering damage by fire, storm, cyclone or any other calamities and theft. The compensation against any such loss to business will easily be yours once you have bought this insurance. Not only this, renovations and maintenance can conveniently be done if you get a good amount as claimed money.

In US, there are three most popular commercial propertyinsurance covers. Have brief introduction of these three below:

1. Basic form policies: The business insurance compensates you against the damages that are quite common, such as fire and storms.
2. Broad form policies: This commercial property insurance shelters your business from the risk of artificial causes of damages, including water leakage, collapsed commercial building, sprinkler damage, damages due to ice, sleet and snow.
3. Special form policies: This insurance offers common and special covers but with the exception of particular cover that you want to exclude. For instance, damage due to natural calamities like flood, earthquake, war, terrorism, nuclear radiation, wear and tears and attack of insects and vermin.

The entrepreneur sleeps tight with the idea of no threat from the risk causing factors that could drag him under the burden of hefty loss. But purchasing it with blind eyes would be nonsense. So, if you want to play a safe game in business, play it wisely and with cool head. You must consider the listed points intensely:

1. Read out the policy thoroughly. Understand it clearly.
2. If possible, make one or two visit to various insurance companies for extracting an idea of insurance rates. You will get some good options to compare one with another.
3. Since commercial property insurances are many so you ought to examine if you need any other insurance cover to make your business completely risk-proof. Buy separate insurance if needed.
4. You have a very good option of buying a single policy that can cover multiple commercial properties. In such case, the premise or business assets should be similar in purpose.
5. If you deal in variable businesses, you ought to buy separate covers for each.
6. The insurance cover of own commercial property and on-lease commercial property will be different. If you belong to the latter category, you ought to purchase tenant cover for protecting your commercial assets from getting damaged. Sometimes, lacking this knowledge can pay you hefty as tenant coverage will require lesser amount to be paid in premium than that of the owner of that property. For tenant, it will provide coverage to assets of the business but not the building.