Property Coverage
When it comes to property coverage, there are three main types to consider for your business. Commercial Property, Commercial Auto and Flood.
Commercial Property Insurance provides compensation for losses or damage due to a catastrophic event (such as a fire) and includes:
- Buildings
- Leased or owned equipment
- Other property on the premises (items such as furniture, inventory, computers etc. can be covered on this policy)
Commercial Property coverage is offered as either:
- Replacement Cost: pays the cost to replace or repair the damaged property with materials of like kind and quality without any deduction for depreciation.
- Actual Cash Value: pays the cost to repair or replace the damaged property minus depreciation.
Commercial Auto policies cover the cost of an auto accident if a business owner or employee is at fault. It will pay for damaged property and medical expenses. This coverage is needed if:
- A business owns, leases, or rents vehicles.
- Employees drive their own vehicles to conduct business.
- Any employees operate leased, rented, or owned company vehicles.
Flood
Most commercial property policies do not cover damage caused by a flood. Typically, a flood policy must be purchased separately. Even if you believe your business is not located in a high-risk flood zone, it is important to thoroughly evaluate your business’ level of flood risk.