Operating a business leaves you exposed to a lot of potential risks. The common threat of an emergency occurring is why many businesses prefer to lease property instead of owning it. Any stolen or damaged property due to a fire or natural disaster can cause a financial catastrophe. However, you can rely on commercial insurance to protect your business in multiple ways.
One of the featured coverages in your insurance policy is commercial property insurance. Commercial property insurance has been designed to cover your business during these emergency scenarios when your commercial property is at risk. Here’s an overview of how commercial property insurance protects your business during emergencies.
- Important Protections
Many business owners choose to lease commercial property. If the property is leased, the owner may be responsible for covering potential losses. Be sure to check your rental agreement. If you rent your property out to a tenant, your commercial property insurance policy can protect you in multiple ways. Commercial property insurance covers you if a hurricane or other natural disasters damage the property. The policy covers any costs associated with removing debris and rebuilding the property. Bodily injury liability coverage is also important. It protects you if a visitor gets injured on your property and pursues legal action. The policy covers your legal fees and a potential settlement you are obligated to pay.
Commercial property insurance covers you if a criminal steals or damages your equipment and inventory. You are also covered if someone causes damages to the property. The policy will help cover the necessary repairs and replacement parts. If you have a tenant who isn’t paying their rent or damaging your property, commercial property insurance protects you if you pursue legal action against them. Remember that your policy includes a specified time frame of when you can file a claim and receive benefits. It’s recommended that you act as soon as possible.
- Potential Tax Benefits
Your commercial property insurance premiums are tax-deductible. You have the ability to write them off as a business expense, which reduces your taxable income and overall net profits. Furthermore, you may qualify for a tax deduction if your commercial property is destroyed due to a natural disaster.
- General Policy Costs
The cost of your commercial property insurance policy depends on multiple variables, including the type of industry that the business is involved in and the net worth of the property. Insurers will also assess the company’s assets. Not every business is exposed to the same risks. The insurer will look at the construction of your building. Your premiums will be cheaper if the building is made of fireproof materials and has an enhanced HVAC and electrical system. These features can help prevent the business from suffering major damage, lowering the insurance risk.
Insurers will also check if the property has an updated security and sprinkler system. If the building has a fire alarm or is close to a fire station, that reduces the possibility of a serious fire occurring. If the property is in a high traffic area, that also increases the chances of an issue occurring in the future. Insurers will determine all the daily risks involved when calculating your premium.
Consult with CF&P Insurance Brokers
Commercial property insurance is an asset because it protects your investment during emergencies. You can have peace of mind if a storm moves through the area and causes damage or your pipes burst. If you have any questions about commercial property insurance, contact us today. Our team of professional insurance experts at CF&P Insurance Brokers will assist you in creating the best overage plan for all your business needs.