Commercial property insurance is designed to protect the physical assets of your business. It can apply to almost any place where a business is located – from an owned commercial building to a rented warehouse to your home office.
Alongside commercial liability insurance, it’s one of the most common types of insurance we secure for business owners in Edmonton.
Be Aware of What Is & Isn’t Included in Your Policy
There are so many types of insurance for businesses and property owners. All the different policies can become confusing very quickly.
Here’s a breakdown of what’s typically included and not included in commercial property insurance. Keep in mind that there are some variations, and you should always double-check your policy document and/or ask your broker for information specific to your insurance.
Property, Buildings, Assets & Inventory
Most policies for commercial properties cover five basic aspects of your business:
- The property itself
- Any buildings on the property
- Any assets that are stored on the property (such as equipment or tools)
- Any inventory that’s stored on site
- Outdoor assets including landscaping and fences
Business Interruption
Your property policy may include provisions for business interruption due to a loss of revenue or increase in expenses after damage to your property.
It’s important to be very aware of whether this is included in your policy or not. In most cases, your broker can easily add in a business interruption policy to offer more well-rounded protection.
Theft, Fire & Natural Disasters
Most commercial property insurance covers incidents such as fire, theft, vandalism, burst pipes, and natural disasters.
Earthquakes, floods, and sewer backups are typically included in these policies. Again, there’s a lot of variation in what’s covered, so be sure to ask about specific circumstances.
Does it Include Commercial Liability Insurance?
Commercial property insurance is designed to protect your physical assets. It typically includes general liability insurance, which protects you from harm to people or assets due to your work or products. However, many businesses have these two types of policies created by their insurance broker at the same time, sometimes under the same insurance provider.
If you’re not sure which types of business insurance you need, check out our list of five types of business insurance every business owner should have.
Factors That Affect Your Commercial Property Policy & Rates
Insurance is based on risk, and no two businesses have the same type or amount of risk. That’s why your coverage and premiums always have to reflect your specific circumstances. Here are a few factors that could have an impact on your policy inclusions and premiums:
Location
Where your business is located is one factor that could impact your risk assessment. For example, insurance in a place like BC, where forest fires are more common, will likely increase your premiums.
Construction Materials
If your building is made of fire-resistant materials, you could get a far better deal on business insurance for your property. It’s always a good idea to talk to your insurance broker before you buy or remodel a property or building. They can help you determine how the materials used will impact your policy and what you can do to create a better fire rating.
On a separate but related note, the age of your building can also factor into your policy. Older buildings tend to be at greater risk of damage due to fires and natural disasters.
Occupation
What’s going on in your workplace? It can have a big impact on your insurance because some businesses have more operational risk than others. For example, a restaurant or machine shop will have a greater risk of fire than an office building or pharmacy.
Risk Prevention in Place
Another factor that could impact your property insurance quote is the type and amount of risk prevention techniques in place. For example, if you have a security or alarm system, proper fire alarms and extinguishers on site, and you’re located close to a fire station, your property insurance may not cost as much because your risks are already lowered. It’s worth investigating what you can do upfront to mitigate risks, not only because of your insurance rates, but as overall protection for your business.
Value of Assets
If you have thousands of dollars in tools, equipment, stock, technology, materials, or other assets on location, you’ll have to increase your policy limit to include these. Your commercial insurance broker will ask you to complete a basic inventory (focusing on high-value or bulk items) before your policy is written. Don’t forget your exterior assets when you’re completing your inventory – items like signs, fences, and landscaping would need to be replaced under certain circumstances as well.
Other Options & Policies for Business Owners
Our carriers offer a range of add-ons or other options for protecting your commercial property. Equipment breakdown coverage ensures your expensive equipment is covered if it stops working and leads to losses. Mobile property insurance and drone insurance are a few other options for specific items that may not fall under your commercial property insurance policy.
Your commercial insurance broker in Edmonton will also be able to add on the other business policies you may need for full protection, including cyber liability insurance, professional liability insurance, and commercial auto insurance.
Review Your Policies with an Experienced Broker
At Cornerstone Insurance, we pride ourselves on helping Edmonton businesses protect their assets so they can make it through virtually any setback with confidence. We’re here to find and fill the gaps in the business policies you need for complete protection.
If you aren’t sure about your commercial insurance, what it includes, or if there are gaps, get in touch with our commercial brokers for a free review and consultation.
