Key Facts About Commercial Property Insurance

As we move into the New Year and finalize budgets for property owners and CAM charges for tenants, a key component to put on your commercial property checklist is INSURANCE.  Whether you own your own building or you lease a space in which to operate, insurance is vital.

There are several different kinds of insurance that you might want to discuss with your agent:

  • Business Owner’s Policy (BOP) – this might include various types of insurance such as vehicle coverage, liability insurance and property insurance.
  • General Liability Insurance – a necessary for every business, this covers damages in the event that a third party is harmed.
  • Renter’s Insurance – for those who rent their property, this covers the contents or personal injury within a property
  • Business Interruption Insurance – in the event that lost income is due to unexpected occurrences such as fire or natural disaster
  • Workers Compensation Insurance – comes under business insurance and covers medical, disability and death benefits for an employee who has an accident while carrying out business duties

In addition to maintaining your insurance policies, Owners of businesses who own or lease will want to:

  • make sure that you have enough insurance coverage to repair or rebuild your property in its current state in the event of fire or other casualty
  • make sure your staff / employees have an emergency contact list with important phone numbers; this list should include:
    • local & state emergency management agencies
    • major clients
    • contractors
    • suppliers
    • property management
    • insurance agents / companies
    • financial institutions
  • decide on a communications strategy for your business and post notices at your premises
  • keep duplicate records; backing up computerized data files regularly and storing them off-premises
  • secure your property in the event of a tropical storm or hurricane from:
    • water intrusion under doors via sandbags
    • water damage to electronics by moving them and / or placing them in plastic bags for protection
    • exterior building damage by bringing inside or removing any loose trash cans, flower pots, benches, etc.

For businesses, the cost of a disaster would seldom be limited to physical damages.  The loss of use or income can elevate the financial loss to one that is crippling.  Most business owners become complacent about natural disasters until it happens to them.  With the very real memory of Hurricane Florence still lingering, we urge you to review your business insurance policy and options regularly.  If you have questions or need general information about insurers in our area, please contact our Property Management team at Sun Coast Partners Commercial at 910-202-1394.