AJS INSURANCE

COMMERCIAL PROPERTY INSURANCE

Commercial property insurance is insurance written for commercial properties such as businesses, farms, ranches, condominiums, strip malls, franchises, medi-spas, and large corporations. Commercial property insurance protects people who own these types of properties from potential damage to their buildings, contents, and staff.

Commercial property owners may include those who operate a business or those who lease a property to another entity. For protection, business owners will purchase commercial property insurance policies written to protect the buildings in which they conduct business and its associated structures.

Types of Commercial Property Insurance

There are various types of commercial property insurance policies, most of which cover different kinds of risk factors that are industry specific. There are a number of insurance companies that specialize in industries such as manufacturing, licensing, and even terror.

Commercial property insurance policies fall into three main categories:

	The first is the basic form. Policies of the basic form will cover common perils like damage sustained by fire, windstorm, vehicles, aircraft, lightning, and civil upheaval.
	The second commercial property insurance policy category is the broad form. Broad form commercial insurance policies include coverage for basic perils plus others such as falling objects, weight of snow, ice or sleet, water damage, breakage of glass, collapse, and sprinkler leakage.
	The third is a special form of commercial insurance policy. It protects business owners from all causes of loss notwithstanding risks that are specifically left out of the contract. The causes subsumed in this commercial insurance policy are flood, earth movement, war, nuclear disaster or other “megacats” (mega-catastrophes) including hurricanes, wear and tear, and insects & vermin.

Additional Coverage for Your business

There are policies bought by consumers and business owners who need additional commercial property insurance as well. Liability policies, business interruption, and extra expense to name a few are among these other policies. The liability policy of commercial property insurance protects the owner against the cost of a lawsuit and probable judgment. Coverage for business interruption can reimburse the policyholder or insured for income lost when their business is put on hold due to loss or damage of a building. Extra expense in commercial property insurance covers payments that are made by the insured to continue business operations as fast as possible after sustaining a loss.

Commercial property insurance policies will also cover damage from floods. Nonetheless, many commercial property insurance holders may get their insurance from the National Flood Insurance Program implemented by the federal government. Now, because natural catastrophes are becoming more and more frequent, other state-run agencies are being created to assist the insurance market which is shrinking. As a result, companies are focusing on niche markets, targeting certain areas excluded from traditional policies.

Back to Services