If your business has buildings you own, you likely have different coverage needs than those that rent or lease locations. For example, if a storm damages an external wall or your roof, it’s likely your responsibility to fix it as opposed to a lessor. It might seem obvious that the building itself needs to be protected, so what about the less obvious things that need to be covered. Let’s discuss some of them and review what risks you may not have considered.
Furniture and Fixed Equipment
If you’ve furnished your building’s space with desks, tables, chairs, etc., a commercial property policy will likely cover those items as well. In addition, if there is equipment that is “fixed” to the structure – such as an HVAC system or water heater – this may be covered as well.
Signage
If you have external signage, such as your branded sign installed on the building, it may be covered by a commercial property policy as well. Even an outdoor “street” sign may be covered but be sure to note if there are limits around the sign’s lighting or structure. In addition, if you have a mural on your building, it may need additional coverage.
Ordinance and Law
Building codes and regulations change over time. If you have an older – or maybe even historic – building, you may have new upgrades required if your structure needed to be significantly repaired or rebuilt. If you have ordinance and law coverage in your policy, additional limits may be available for these repairs.
Business Income and Extra Expense
If damages to your building prevent you from conducting business, your policy may have coverage available to assist with your payroll expenses, operating costs, and even losses in income. Be sure to understand the language in your policy about when this would go into effect and for how long.
What Isn’t Covered
As with almost all property insurance policies, there are some restrictions on what is covered. Some of the most common exclusions you will see include losses from floods, earthquakes, intentional damage, normal wear & tear, war & terrorism, and nuclear hazard. And while those last four aren’t likely to be covered by anyone, additional policies and/or endorsements for flood or earthquake are likely something you can acquire for your business.
There are many variables to covering your commercial buildings for business. Our agents can help you review the risks and understand what options you have for insurance. Contact our team and we’ll get started today!