Owning commercial real estate is a major investment, and with it comes the responsibility of ensuring your property is properly protected. Whether it’s an office building, retail space or industrial property, unexpected events such as fire, flood or vandalism can cause significant damage, potentially resulting in business interruption and financial loss. Commercial real estate insurance is designed to protect your investments and your business from these risks.
Why do you need commercial real estate insurance?
Commercial real estate insurance provides comprehensive coverage for a wide range of risks. This includes physical damage to the building itself, as well as coverage for the contents inside, such as machinery, equipment and office furniture. Depending on your policy, you can also get business interruption coverage, which compensates for lost income during the period when your business is unable to operate due to covered events.
Aside from property damage, this insurance protects against liability claims. For example, if someone is injured on your premises, your policy can cover legal fees, medical costs, and any potential settlements. Having this protection gives you peace of mind, allowing you to focus on running your business without worrying about what might go wrong.
Design your own coverage
Not all commercial real estate policies are created equal, and it is essential to tailor your coverage to fit your specific needs. Depending on the type of property you own, you may need additional coverages, such as:
- Flood insurance: Especially important if your property is in a high flood risk area.
- Equipment breakdown insurance: Protects against failure of major machines or systems such as HVAC or elevators.
- Loss of rental income: If you rent out your commercial space, this covers you in the event of damage that renders the property uninhabitable.
Working with an experienced insurance broker can help ensure that your commercial real estate policy includes everything you need, without unnecessary additional costs. Here’s a closer look at the types of coverage available to commercial property owners:
- Property damage insurance: This covers damage to the physical structure of the building due to events such as fire, storms, or vandalism. It can also include coverage for the contents inside your building, such as equipment, furniture and inventory.
- Business Interruption Insurance: If your property is damaged and you are unable to work, business interruption insurance helps replace the income you would have earned during the downtime. This can be especially valuable if your business has high overhead costs.
- General Liability Insurance: Commercial property owners can face liability claims if someone is injured on the property. This insurance covers legal fees, medical costs, and any settlements or judgments resulting from such accidents.
- Flood insurance: Standard property insurance doesn’t usually cover flood damage, so if your property is in a flood-prone area, this is an essential add-on. Flood insurance can protect you from the potentially devastating financial impact of water damage.
- Equipment breakdown coverage: For properties with essential machinery or systems, such as HVAC units or elevators, this insurance provides coverage in the event of a breakdown. It helps cover repair or replacement costs and can reduce disruption to your business.
- Loss of rental income: If your commercial property generates rental income, this coverage helps protect against loss of revenue when the property becomes uninhabitable due to damage.
- Crime insurance: This protects your property from losses caused by theft, burglary or breach of trust. It is especially important if your business deals with cash or valuable goods.
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At Doliban Insurance, we understand the unique needs of commercial property owners. Our team is dedicated to helping you find the right coverage for your building and business. From property damage to liability, we’ll ensure you’re fully protected.
Contact us today to learn more about our commercial real estate insurance options and obtain a policy tailored to meet your needs.