What You Need to Know
Success is No Accident; It’s Planned
At Armor Insurance Agency, we understand that protecting your business’s physical assets is essential for ensuring long-term success.
Whether you own a small retail shop or manage large commercial properties, our comprehensive Commercial Property Insurance solutions offer the protection you need from unexpected losses, such as fire, theft, and more.
Let’s explore what commercial property insurance covers and how it can safeguard your business.
What is Commercial Property Insurance?
Commercial Property Insurance protects your business from losses related to the physical assets you own or lease, such as buildings, equipment, inventory, and more.
Whether your business operates from a small office or an expansive warehouse, this policy ensures you’re protected from risks like fire, vandalism, storms, and other covered perils.
Key Elements of a Commercial Property Policy
To provide robust protection, a typical Commercial Property Insurance Policy includes the following elements:
- Commercial Property Declarations Form
- Commercial Property Conditions Form
- One or More Commercial Property Coverage Forms
- Causes of Loss Form
- Endorsements
These forms and documents define what’s covered, exclusions, limits, and special conditions to help ensure you have a tailored policy that meets your business needs.
Comprehensive Coverage Options for Your Business
At Armor Insurance Agency, we offer a range of Commercial Property Coverage Forms designed to cover different aspects of your business. These include:
- Building and Personal Property Coverage
- Builders Risk
- Condominium Association
- Business Income with Extra Expense
- Extra Expense Only
- Legal Liability
These coverage forms are designed to protect both the physical structure of your business and its contents, including furniture, equipment, and machinery.
Building and Personal Property Coverage Form
The Building and Personal Property Coverage Form is the cornerstone of many commercial property insurance policies. This form provides coverage for:
- Buildings: Including structures, completed additions, outdoor fixtures, and permanently installed machinery.
- Business Personal Property: Furniture, fixtures, machinery, and other equipment used in your business operations.
- Personal Property of Others: Protects property of others in your care, custody, or control.
This coverage extends to property located in the building, in the open, or in a vehicle within 100 feet of the premises.
What’s Not Covered?
There are some key exclusions in this coverage, including:
- Money and securities
- Vehicles licensed for public road use
- Fences, signs not attached to buildings, and trees
- Bridges, patios, and paved surfaces
- Land, water, and growing crops
Additional Coverages and Extensions
Some additional coverages that may automatically apply to the policies:
- Debris Removal: Pays up to 25% of the direct loss for debris removal after a covered peril, with an additional $25,000 available in certain cases.
- Preservation of Property: Covers loss to property moved to protect it from a covered peril for up to 30 days.
- Fire Department Service Charge: Covers up to $1,000 in fire department service charges.
- Pollutant Cleanup and Removal: Provides up to $10,000 for pollutant removal from land or water due to a covered cause of loss.
Additional coverage extensions may be available to expand your protection:
- Newly Acquired or Constructed Property: Covers up to $250,000 for newly acquired buildings and $100,000 for business personal property.
- Valuable Papers and Records: Provides up to $2,500 to replace or restore damaged papers and records.
- Non-Owned Detached Trailers: Covers trailers used for your business operations, with a limit of $5,000.
Business Income Coverage
When a covered peril forces your business to suspend operations, Business Income Coverage ensures that you can recover lost income during the period of restoration. This form of coverage helps protect your business from the financial impact of downtime and includes:
Net Income Protection: Covers the income you would have earned if the loss had not occurred.
Normal Operating Expenses: Includes costs such as payroll and rent.
Two business income coverage forms commonly available:
- Business Income with Extra Expense: Reimburses the insured for additional costs incurred to keep the business running during repairs or rebuilding.
- Business Income without Extra Expense: Focuses solely on covering the loss of income without extra expense reimbursement.
Both forms can be tailored to include rental value and optional extended indemnity periods to provide the maximum protection for your business.
Builders Risk Coverage
Builders Risk Coverage protects buildings under construction, including fixtures, equipment, and materials within 100 feet of the building. Coverage continues until the project is completed or occupied.
Two options are generally available:
- Completed Value Form: Covers the project for its completed value.
- Builders Risk Reporting Form: Allows for gradual increases in coverage as the building progresses.
Condominium Coverage Forms
There is specialized coverage for commercial condominium associations and unit owners.
- The Condominium Association Coverage Form insures the association’s buildings and business personal property
- The Condominium Unit Owners Coverage Form protects the unit owner’s personal property and business-related assets
Causes of Loss Forms: Protecting Your Property from Perils
Your policy’s Causes of Loss Form outlines the specific perils your business is insured against. We offer three types of forms:
- Basic: Covers fundamental risks such as fire, lightning, and vandalism.
- Broad: Adds protection for risks like water damage, falling objects, and ice/snow damage.
- Special: Provides open-peril coverage, protecting against all risks unless specifically excluded.
For businesses concerned about earthquake or volcanic eruption, we also offer an endorsement to cover these perils.
Endorsements for Tailored Coverage
At Armor Insurance, we know that every business has unique needs. That’s why we offer a variety of endorsements to enhance your policy, including:
- Ordinance or Law Coverage: Covers increased costs due to building code enforcement.
- Spoilage Endorsement: Protects perishable stock, such as refrigerated goods, from spoilage.
- Value Reporting Endorsement: Adjusts coverage amounts based on fluctuating inventory levels.
- Earthquake and Volcanic Eruption Endorsement: Covers losses from these natural disasters.
FAQs About Commercial Property Insurance
Q: What does commercial property insurance cover?
A: It covers buildings, equipment, inventory, and other physical assets against risks like fire, theft, and vandalism.
Q: Does commercial property insurance cover natural disasters?
A: Standard policies cover perils like fire and windstorms but may exclude earthquakes and floods. Additional endorsements can be added for these risks.
Q: What is business income coverage?
A: Business income coverage helps replace lost income if your business is forced to close due to a covered loss.
Q: What is builders risk insurance?
A: Builders risk insurance protects buildings under construction, including materials and supplies.
Q: Can I customize my commercial property insurance policy?
A: Yes! We offer a wide range of endorsements and coverage options to tailor the policy to your business needs.
Why Choose Armor Insurance Agency?
At Armor Insurance Agency, we understand that your business is your livelihood. Our Commercial Property Insurance policies are designed to provide flexible, comprehensive protection for your property, assets, and income.
We tailor our policies to your specific needs, ensuring that you have the right level of coverage to keep your business running smoothly.
Get a Quote Today!
Contact us to get a personalized quote for Commercial Property Insurance and discover how we can help you safeguard your future.
Get started with Armor Insurance Agency today and protect what matters most—your business!