Understanding Commercial Property Insurance Coverage

5/31/2019 (Permalink)

Commercial Water Damage in Ogden, UT.

Commercial property insurance can be a highly complex topic that some business owners struggle with. What’s covered? What isn’t covered? What affects the costs of your premiums by driving them up or driving them down? Let’s take a look at what commercial property insurance looks like for property owners in Ogden, UT.

What’s Covered Under Commercial Property Insurance

Many times, what’s covered under commercial insurance depends on the package you choose. You may choose a bare minimum package that only covers liability for any damages not of your own making, or you may choose a more extensive package. Some things you can cover with commercial property insurance include:

• Structural damage caused by fire, accident, or natural disaster
• Theft of property or inventory
• Damage caused by trespassers or vandalism
• Fire, flood, or accident damage to equipment, furnishings, and inventory
• Personal injury liability on premises

What Brings Your Premiums Up

Multiple factors may impact why a commercial insurance provider would raise premiums on your building. If you live in an older building with a high risk of fire, for example, you may pay more for insurance. Your industry also matters; a restaurant has a much higher chance of fire than a daycare center. Neighborhood and proximity to fire services and police services can also play a role.

What Drives Your Premiums Down

That said, commercial insurance providers can also help you find ways to bring your premiums down. Just installing a security system can be enough to bring your premiums down by reducing your likelihood of theft or unwanted intrusion. If your building is constructed from newer fire-retardant materials, you may also see a drop in premiums.

Location once again has an impact, and the closer you are to fire and police services the lower your premium can be. Lastly, if your business is in a low-risk industry that doesn’t frequently have hazardous materials or situations on the property, you can hope to enjoy lower premiums.