Types of Commercial Property Insurance

Commercial property is subject to many risks and the property owner would have to face heavy losses if the property were to get damaged or destroyed.  Not only would he have to bear the costs of repairing or replacing the damage, he would also lose the opportunity to make profit in the business until the damage is set right.
The owner of the property would benefit by taking the right kind of insurance for commercial property as the insurance company would then bear the brunt of the loss.  There are various types of commercial property insurance available and the owner should select the policy which would meet his needs.

Types of Commercial Property Insurance

  • All Risk Policies

These policies cover all kinds of risks to the insured commercial property except those that are specifically mentioned as exclusions.

  • Peril Specific Policies

A property owner who has taken a peril specific policy would be indemnified by the insurance company only if the damage to property is due to one of the causes specifically mentioned in the policy.  For instance, if fire and vandalism are the perils specified, then the loss caused to the property due to a cyclone would not be made good by the insurer.

Types of Commercial Property Insurance Coverage

The costs of commercial property insurance depend on the kind of coverage taken by the insured.

  • Building occupied by the insured’ coverage

This coverage covers the risks of a business which occupies a particular property but does not own it.

  • ‘Newly acquired or constructed buildings’ coverage

The insured is given this coverage only if the new property is added to the policy within the specified period of time.

  • ‘Off-premises property’ coverage

A business may own a property situated far away from its main property.  Opting for this coverage would cover the risk to such property which is located off premises.

  • ‘Employees’ personal property’ coverage

 If the insured has taken this coverage, the loss to an employee’s personal property located on the business premises would also be covered.

The various types of commercial property insurance help the business owner to protect himself against a broad range of risks.  Once the insurance policy is taken, he need not worry about the possibility of any kind of damage to his property.  He would have transferred the risk to the insurer and he can just concentrate on his business.

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