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How to Buy Commercial Property Insurance in Florida: An Overview

Commercial property insurance is a type of business insurance that covers commercial buildings as well as their contents against damage caused by perils such as fire and windstorms. You can purchase a policy that covers one building in a given location or multiple buildings in various locations. Here’s more detailed information on this topic.

Commercial Property Insurance: The Basics          

Commercial property insurance is also referred to as commercial building insurance, business property insurance, commercial real estate insurance, or commercial real estate insurance. You can purchase commercial property insurance as a separate policy or as a component of a BOP (business owner’s policy), which bundles commercial property insurance with general liability insurance. General liability insurance covers property damage and bodily injuries liabilities emanating from your business operations.

The cost of a commercial property insurance policy is chiefly hinged on the worth of the assets and commercial property that it protects. For instance, if you’re getting commercial property insurance for a home office, you’ll likely pay far less compared to a business with a couple of office buildings.

Other factors that impact the pricing of commercial property insurance include:

  • Your business location – You’ll likely pay more if you’re in a location that’s prone to covered perils like rains, storms, or wind.
  • The construction of the building – Are your electrical and plumbing systems up-to-date? Is the building structure made of fireproof material?
  • Your industry – A building that hosts a busy restaurant likely carries greater risk than an accountant’s office.
  • Protections against fire and theft – What kind of sprinkler system and fire alarm system do you have in place? How close are you to a fire station? What kind of on-site security system is in place to prevent theft?

You don’t have to own the commercial property to get a commercial property policy for your business. You can purchase coverage if you rent office equipment or office space.

Types of Business Property

You can get commercial insurance for any property that’s used for commercial purposes, be it a home office, café, factory, farmland, distribution center, hospital, care/nursing home, garage, shopping center, warehouse, and sports facility. Some of the places or items that you should consider insuring include:

  • The structure that houses your enterprise, whether it’s rented or owned
  • Office equipment, like computers, furniture, and more, whether it’s rented or leased
  • Processing or manufacturing equipment
  • Inventory
  • Satellite dishes and signs
  • Landscaping and fence

When it comes to perils covered, commercial property policies can be broadly categorized into “open perils” policies and “named perils” policies. Named perils policies cover damage caused by perils that are specified in the policy. Typically, the risks covered include theft, fire, wind damage, and vandalism. Open perils policies, on the other hand, cover damage caused by all perils except those that are specifically excluded, for instance, flood damage. Open policies may, therefore, cost more because they offer broader protection.

What’s Covered by the Policy?

Some of the important elements that a business property insurance policy can protect are:

  • Your building, fittings, and fixtures
  • Lost business income, in case you’re forced to close your business due to covered risks, like fire or theft
  • Cash on-premises and inventory

Commercial property insurance pays for the losses on a replacement cost basis, on an actual cash basis, or a combination of both.

  • Replacement cost coverage: With replacement cost coverage, the insurer will provide you with the cash necessary to replace the damaged items with items of similar quality.
  • Actual cash value: The insurer provides you with cash to replace the damaged items with items of similar quality, minus depreciation.

If you’re looking for cost-effective and customized commercial property insurance in Sarasota, Florida that will adequately protect your business, contact our experts at Atlas Insurance Agency today. We are here to assist you with the right coverage for your unique needs.

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