Understanding Your Commercial Property Policy
Every business owner knows that it's important to have a basic business owners package when purchasing commercial insurance. One of the items included in your BOP is the property policy. Here are the answers to two common questions business owners in Galena Park, TX, have about commercial property coverage.
What Does a Commercial Property Policy Cover?
Property insurance is designed to compensate for losses from fire, theft and certain natural disasters. Most property policies cover damage to the structure itself as well as other features of the property:
- Office equipment
- Manufacturing equipment
- Important documents
- Fences and gates
Most commercial insurance policies cover the cost of the work done by certified restoration specialists to repair your building and restore the items that have fire damage in it. If the materials and items are a total loss, your coverage may also pay for their replacements.
How Much Does a Commercial Property Policy Cost?
Your provider may have a base rate for property coverage, but there are several factors that can cause the cost of your premiums to fluctuate. Your overall fire protection is one such factor. Some cities have better fire protocols than others, and it's generally less expensive to insure commercial property in those cities, particularly if your building is located close to the fire department. If your building is constructed of fire resistant materials or you have a superior fire suppression system installed, this can also lower your costs. Finally, the type of business you own plays a role in how much your premiums are likely to be. A restaurant, for example, inherently has more fire hazards than the typical office setting, so it may cost more to insure.
Your commercial insurance policies are designed to protect you financially if you experience some type of loss. Good property coverage allows you to repair damage to your building and surrounding structures without having to pay a lot out of pocket at the time of the event.