Property Insurance

What is property insurance?

With property insurance, your physical property and equipment are protected against loss from theft, fire or other natural disasters. Commercial property insurance can provide you security and peace of mind. It can also help you maintain your hard-earned income rather than having to pay it out in lawsuits or rebuilding fees.

Who needs property insurance?

All commercial property owners, including those doing business on their own property and those renting spaces to other parties need some form of commercial property insurance.

Here are some reasons you might need coverage:

• You own or operate a business
• Your business has physical assets
• Your physical property is essential to your company’s revenue
• Your physical assets do not draw revenue but have other important uses

What does property insurance cost?

Property insurance rates can vary, but premiums are generally based on the value of your business space and its contents, as well as the level of risk your industry faces. Someone in a “low-risk” position, like a marketing consultant will often pay lower premiums than in a “high-risk” position, such as a restaurateur.

Other factors that are considered:

Construction
The building materials used in your business space might affect your rate. For instance, it might cost less to insure a building made of brick or stone, which is more fire resistant.

Occupants
Who uses the commercial space and for what purpose will also be considered. Businesses who have a higher risk of fire, like restaurants, might pay more for property coverage than others.

Protection
Your property insurance may cost less if you mitigate your risks by having sprinkler systems, fire alarms, and extinguishers on hand.

Location
Your neighborhood is also factored into your premium. For example, it could cost more to insure a building located in a high crime area.