Tips for Commercial Property Insurance
Commercial Roofers With Experience
The Following 5 Items Should Be Checked By Business Owners When Purchasing Commercial Property Insurance
1. Open Perils or Named Perils
A commercial property insurance policy (along with several other types of insurance policies) is either an open perils policy or named perils policy. Typically a named perils policy covers only the risks that listed specifically in the policy, while an open perils policy usually covers any risk that is not specifically excluded.
To get the best coverage, search for a business property open perils insurance policy. A majority of open perils policies provide more comprehensive protection compared to named perils policies since an open perils policy does not limit coverage to just risks that are mentioned specifically in the policy.
2. Coverage Amount For Buildings
Usually, insurance policies for business property clearly state the amount of coverage that is offered on any buildings owned by the business. You need to ensure that any policy you get provides enough coverage for your business buildings in Massachusetts. It is often a good idea to get enough coverage that will pay to reconstruct a building, and that might cost more than the actual worth of the building.
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3. Actual Cash Value vs. Replacement Value
A majority of business insurance policies provided coverage on business supplies inventory, and equipment. The coverage might be actual cash value coverage or replacement value coverage.
To ensure that your company can fully recover if its inventory or equipment is damaged, find a policy that will provide you with replacement value coverage. Usually, actual cash value coverage only covers items at their depreciated value, and that might be less than what it will cost to buy new ones. Normally replacement value coverage will provide enough protection so that items can be replaced.
4. Limits on Specific Items
Some insurance policies on business properties have lower limits on some items. For example, an insurance policy may offer less coverage on valuable inventory or electronics than on supplies or equipment.
When buying insurance, be sure that any limits on certain items contained in the policy are sufficient for the needs of your business. If you need to have more coverage on certain items, choose a higher limit for these items, buy a rider for a specific item or get a different insurance policy.
5. Business Interruption Coverage
Quite often you can purchase business interruption coverage as a standalone insurance policy. However, it is available as well as through numerous business property insurance policies. The coverage can help your company survive interruptions in its operations that reduce the amount of revenue coming in.
Since business interruption coverage may be purchased separately quite often, it isn’t necessary for you to limit your search for a policy that provides this coverage. You can check for that coverage still, though. If there are two similar policies, you can choose the one that comes with business interruption coverage. You also want to know whether it is included in your business property policy so that you don’t buy duplicate coverage through a different policy.
Armadillo Roofing & Exteriors (512) 333-7663, provides commercial services to Austin, Texas and the surrounding area. This includes commercial roof repair, commercial roof installation and commercial roof replacement. We have been providing professional commercial roofing services to the area for over 15 years.