Whether you own a retail store, an office, a warehouse, or a service-oriented business, you need to protect what you own. In Massachusetts, commercial property insurance is the principal tool, but it’s important you have the right coverage to protect your interests well. Your tangible property is a major asset of your company.
Here are a few tips to help you obtain the coverage you need at the most reasonable cost.
Understand Your Choices
Typically, insurers offer a single policy which covers your building and property. However, it excludes liability coverage, vital to protect your interests.
Alternatively, you can buy a Business Owner’s policy; which includes property, liability, and sometimes business interruption coverage and other protections. Since it offers offer broader coverage and value, it’s often the preferred choice.
Check Policy Limitations & Exclusions
Most policies protect your building, contents, and items within a limited distance from your place of business such signage, fencing, and outbuildings from covered perils. These usually include risks such as fire, theft, vandalism, hail, wind damage, lightning, etc. If you file a claim, the insurer typically pays up to the policy limit.
However, commercial insurance policies vary greatly between carriers. What an insurer covers or doesn’t is very important to understand. For instance, if your business relies on equipment you take to various locations, you need specific coverage, as property insurance is location specific.
A policy may limit how much you can claim or exclude coverage for particular events, too. For instance, many commercial insurance policies don’t include cyber liability, flooding, or general liability. Your policy may limit how much you can claim for inventory, computer software, document loss, or mobile devices too.
Do a Business Inventory
It is very important that you tailor your coverage to your business needs. Otherwise, you’ll pay for unnecessary coverage and leave valuable assets unprotected.
Costs vary dramatically based on the characteristics of what property you own and how you use it. However, the principal determiner for commercial insurance costs is the dollar value of what you own.
Prepare a detailed list of your assets before you shop for commercial property insurance. Insurers look at the “asset class” of items to determine the risk, rate, and depreciation of items. Properly aligning your insurance to assets ensures proper protection at the best possible cost.
Rely on a, Independent Agent
An independent insurance agent assesses your needs, compares policies and cost, and then only suggests the most worthwhile coverages for your unique situation. They don’t just look at cost, but also important considerations such as exclusions and limitations. They balance your deductible against your cash flow too so you don’t want pay more than you can afford if you need to file a claim.
They explain everything to you in simple terms, look for available discounts, and can often bundle policies for savings and improved coverage too. Fire or wind-resistant materials and an alarm or sprinkler system, could mean you pay less.
Let Phil Richard Insurance tailor your commercial property insurance to suit your needs. We provide expert, unbiased advice, identify your risk factors, and find high-quality insurance products to protect your business affordably.