Commercial property insurance helps your business, including farms and ranches, pay to repair or replace buildings and other property damaged or destroyed due to fire, flood, storm, or any other covered by your policy. It will also replace stolen or lost property, and you can have this coverage regardless of whether you rent, lease or own your building. If your company has more than one location, you can have one policy. The exception is if each location completes different tasks and different risk profiles, like a factory and an administration building.
There are three types of commercial property policies in Texas, and they each protect against diverse causes of damage, commonly called “perils,” including fire, lightning, windstorms, and damage caused by cars and civil commotion. Basic form policies cover common perils. Broad form policies cover common perils plus water damage, structural collapse, sprinkler leakage, and damage caused by ice, sleet, or the weight of snow. Special form policies cover all types of perils except those specifically excluded by the policy. Frequently damages from floods, earth movement, war, terrorism, nuclear disaster, general wear and tear, and insects and vermin are excluded.
Commercial property policies are not standardized, meaning your insurance company must meet the minimum state requirements but they can create their own policies above and beyond the minimums. This can cause confusion from company to company since they aren’t uniform. The key is to read your policy carefully so that you can figure out if you need additional coverage. On the bright side, you can buy policy endorsements to amend or add to your base policy for the extras you need. There are numerous commercial property coverages that you will see in your base policy or as endorsements, but a few are:
- Building occupied by the insured coverage safeguards buildings you use regularly but you don’t own. This is important is you lease or borrow a building.
- Newly acquired or constructed buildings coverage protects new buildings if you add them to your policy within a certain time, normally 30 days. If you don’t add them within that time frame, they won’t be covered since commercial property policies only cover what is named in your policy.
- Employees’ personal property coverage insures your employee’s personal property if it is on your premises.
- Business interruption coverage pays for your income lost if your business is damaged and can’t perform normal business functions.
You can also buy coverage to protect your business from crime. Common crime coverage includes loss of glass and money due to theft coverage, robbery and safe burglary coverage, forgery or alteration coverage, and theft, disappearance, and destruction coverage.
Since there are so many factors to look into when choosing a commercial property insurance policy, you need to talk to a company you can trust to answer all of your questions. Call David Ison & Sons Insurance in San Antonio at 210-490-1494 and they will work with you to make sure you get the coverage you need to protect your business.