In an increasingly competitive and unpredictable business landscape, mitigating risks is vital. Few businesses can afford financial losses should an unforeseen event cause disruption. This is why many business owners seek to set up commercial property insurance as soon as they acquire the space.
Commercial property insurance refers to the structure or space used exclusively for business-related purposes. In some cases, this may be owned by the business owner or leased by a landlord. Either way, it is a valuable asset that should be protected. Apart from the structure itself, the equipment, furniture, and the inventory therein are also valuable assets that need to be protected. This is why commercial property insurance exists - to protect your assets under one comprehensive coverage.
Who Needs Commercial Property Insurance?
For many business owners (seasoned or soon-to-be) who are still getting their finances in order, insurance for commercial property is one of the first and foremost property coverages that they should secure - and for good reason. Just imagine how much damage an electrical fire would cause to a store, office space, factory, or storage building. Not only will repairs and replacement costs be steep, but the business will also suffer irreparable profit loss during its downtime. This is only one example scenario but it’s unfortunately quite common. With the latest data on structural fires in Canada, more than 4000 out of 19,000 or 21% of the incidents were fires sustained by a commercial structure.
There will always be risks involved regarding owning a business. If not a fire, damages through vandalism, theft, and other natural disasters are all possible. Therefore, if your business has valuable physical assets that are needed to generate revenue, then you definitely need insurance for commercial property.
Insurance for commercial property is pertinent for business people in these industries:
- Hospitality industry owners of restaurants, bakeries, and bars
- Retail owners of stores, boutiques, and groceries
- Owners of clinics, spas, and salons
- Owners of companies with office spaces
- Landlords for office spaces
- Owners of storage buildings
Rented Business Spaces Still Need to be Insured
Even though insurance for the rented space is the responsibility of the landlord, business owners still need their own commercial property insurance for the equipment, inventory, and other valuable physical assets that they have inside the property.
Commercial Property Insurance Coverage
Insurance for commercial property will protect you against financial losses in the event that valuable physical assets owned by your business are damaged or destroyed due to unforeseen circumstances.
Covered physical assets can include the following:
- The building or space where your business operations occur
- The equipment within the building or space (e.g. electronics, machinery, furniture, etc.)
- Important company documents (e.g. client files, accounting records, blueprints, etc.)
- Products or raw materials in your inventory
- The personal belongings of the employees
Types of unforeseen circumstances typically include the following:
- Vandalism or theft
- Natural disasters
- Some forms of water damage
- Rioting and civil commotion
The Benefits of Commercial Property Insurance
Securing commercial property insurance that meets the needs of your business will only provide you with the peace of mind you need during a difficult time. Here are just some of the benefits this insurance can provide you with:
Avoid Unexpected Costly Repairs and Replacements
There are many things that are outside of our control or foresight. The only thing we know for sure is that damages can happen to any business at any time. In the event that an unexpected fire, riot, natural disaster, or theft causes damage or loss to your assets, insurance for commercial property will cover the cost of repairs and/or replacement.
Compensation for Business Interruption
Situations such as property damage, equipment destruction, or stolen inventory impact businesses because they can bring operations to a grinding halt. During this standstill, potential income for the business is lost. Commercial property insurance can compensate for lost revenue when business operations are interrupted.
Faster Recovery Process for Your Business
Once your business is covered by insurance for commercial property, this subsequently puts you in the best position to resume normal operations as soon as possible. Time is valuable; in desperate situations some businesses never manage to recover from severe incidences and end up closing their doors for good. Recovering fast also sends an important message to your customers that you are a business they can rely on - and this kind of trust is priceless.
The Cost of Commercial Property Insurance
There are various factors that can affect how much commercial property insurance will cost for your business. These circumstances include:
- The type, age, and condition of the property or structure
- The type of business or industry
- The location of the property
Other Types of Insurance For Your Business
Commercial property insurance is a good place to start, however, another type of insurance that most businesses look into getting coverage for is injuries or property damage that are caused by their business operations - this is known as general liability coverage. Additionally, if you have any commercial vehicles, you may choose to have those insured in case of any accidents.
Due to the fact there are various types of commercial insurance options available, it’s best to work with an experienced insurance broker to be able to put together cohesive insurance policies for your business.
Getting Complete Insurance Coverage For Your Business
Whatever your insurance needs may be, KASE Insurance is here to help. We make it our mission to take care of your business as if it was our own. With our customer-centred approach and vast collective experience in the industry, we will surely put together a fully-customized insurance plan that will protect your business with insurance for commercial property.