What Is Covered Under Commercial Property Insurance?

Businesses must own a lot of property in order to operate, which is one of the big reasons why starting a business requires a large initial investment. If a fire or storm were to wipe out the entire building and everything inside, the cost of replacing property might very well be enough to bankrupt a business that isn’t equipped to deal with emergencies.

Commercial property insurance is designed to protect the property that is owned, rented, leased or otherwise used by a business. Some of this property may include:

  • Building structures
  • Outdoor signage
  • Furniture
  • Fixtures and artwork
  • Computers and related equipment
  • Inventory
  • Raw materials
  • Specialty equipment

Though this coverage can protect a wide range of property, high-dollar or specialized items may require additional coverage in the form of a policy rider (also called an endorsement). This simply adds extra coverage to your existing policy that is specifically designated to protect the item(s) listed on your policy rider. For instance, you may require a rider for items such as silk screen presses or computer servers.

When purchasing commercial property insurance, you have two main options to choose from. An all-risk policy covers a variety of losses, such as storms, fire, theft and vandalism. A peril-specific policy covers the damage that results from a specific peril that is written on your policy, such as floods or earthquakes. Peril-specific coverage may be purchased in addition to all-risk coverage if your business is located in an area with an increased risk of such disasters. Your independent agent can help you determine the coverage that is right for your business.

Have questions? Call Key City Insurance at (801) 840-9555 for more information on Salt Lake City business insurance.