What sorts of properties can commercial building insurance cover?
Commercial building insurance is available for almost all types of properties that investors might hold. An insurance agent who knows these policies well can likely find options for multi-unit residential buildings, office buildings, shopping centers, entertainment venues, factories, industrial buildings, mixed-used spaces, and still other properties.
In addition to insuring buildings, policies are also available for undeveloped land. It’s important to make sure that a policy is suited for insuring raw land, though, as the coverage needs for land and for buildings differ.
A knowledgeable insurance agent can help investors and businesses find the right policy for their type of property, whatever that might be.
What protections are included in commercial building insurance policies?
Coverage specifics can vary some between policies, but most commercial building policies offer protections like the following:
- Commercial Property Coverage: May cover buildings and other structures against potential damage or loss. What perils are covered could be based on a predefined list of threats (closed perils policy), or encompass all risks unless explicitly excluded (open perils policy).
- Commercial Contents Coverage: May cover non-permanent items kept at the insured property’s location. What’s covered could include tools, equipment, inventory, supplies, fixtures, appliances, electronics and more.
- Premises Liability Coverage: May cover common accidents, such as slips and falls, occurring on the business property. What’s covered could include third-party injuries (typically more frequent) or damage to a third party’s property (typically less frequent). Protection is often limited to the insured location.
Most of these policies are written so that any improvements made to a property are included within the policy’s coverages. Improvements would normally be treated much like any other covered item under either property coverage or contents coverage.