Commercial property insurance for small businesses.

COMMERCIAL PROPERTY INSURANCE FOR INDEPENDENT WORKERS & SMALL BUSINESS OWNERS

The simplest way to understand commercial property insurance is to think about it as protection for your income if your physical workspace is damaged. We know that your brain and skills are your biggest assets for your business, but your office space, your equipment, your computer, and all of the other furnishings in your work area are pretty important, too. If they’re out of commission and you are an independent contractor or small business owner, your business might be down for a while. Business property insurance could help keep your business afloat.

WHAT IS BUSINESS PROPERTY INSURANCE?

Business property insurance, also known as commercial property insurance, provides payable benefits to help cover loss of income or revenue due to property loss. Essentially, if your work building or the equipment inside of it is damaged, commercial property insurance helps cover the income you lose while making repairs or purchasing replacement parts. The funds help your business continue to operate without disruption after a fire, burst pipes, storm, vandalism, or other covered damage.

Business property insurance can either help cover specific perils (also known as causes of loss) or take out a package that covers a wide range of perils.

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HOW MUCH DOES COMMERCIAL PROPERTY INSURANCE COST

The cost of commercial property insurance runs the gamut, because businesses all vary in their needs. So, while we don’t have a specific number to show you, we can tell you how business property insurance premiums for small businesses are calculated.

Location: A business’ location may put it more at risk of vandalism or theft, and there could be an increased chance of fire if your office is located in a city or town that lacks adequate fire protection.

Construction: Businesses tend to pay a lower insurance premium if their building is made of fire-resistant materials, such as fire-resistant interior walls, floors, and doors.

Type of business: The business you are running might put you more at risk of damage. Restaurants, for example, are far more likely to experience a fire than a floral shop is. It’s important to note here that if your building has occupants that are at risk of hazards (say, for example, a welder is in the storefront right next to you), you may have to pay a higher premium.

Fire and theft protection: The presence of a fire alarm, sprinkler system, and security system all influence your premiums for business property insurance.

WHAT DOES COMMERCIAL PROPERTY INSURANCE COVER?

A commercial property insurance policy typically covers the building you work out of and everything inside of it. That means that your furniture, computers, servers, equipment, and inventory may be included in your coverage.

Commercial property insurance for your small business may also include the exterior of your business, such as fences, landscaping, signage, and any external structures. In some cases, policies may cover business assets used out of the physical office space, such as laptops people take to work from home or equipment employees use on the go.

The causes of loss that are generally included in the business property insurance policy include:

• Fire
• Equipment breakdown
• Natural disasters
• Theft
• Simple accidents
• Vandalism
• Weather-related damage
• Accidental damage (even if you or your employees are not at fault)

Many commercial property insurance policies do not cover earthquakes and floods, but those perils may be able to be added to the policy. Employee dishonesty and equipment failure is also not typically covered. Commercial auto insurance is also a seperate policy.

WHAT IF MY BUSINESS DOESN’T OWN THE PROPERTY?

If you are renting the building, this is how business property insurance works. Your policy only covers items that you own within the space. If you are leasing equipment from the business owner, make sure to check if that equipment has some type of property insurance.

Our business insurance team is happy to help answer any and all questions you have about business property insurance for self-employed workers. Contact us to start the process.