Understanding Your Specific Insurance Needs

The first step to choosing the appropriate insurance policy for your commercial property is to evaluate the present risks. What types of problems could you reasonably expect to impact your assets based on your location and business type? For example, two of the most common threats to commercial assets across industries are as follows:

• Extreme weather events. These are often covered by many commercial real estate insurance policies, except for floods and earthquakes.
• This entails a wide variety of criminal activity, from theft to arson. You must be careful when reviewing potential policies concerning this detail, as the average insurer is unlikely to cover monetary or security losses or the loss of property due to theft.
  • Note: For adequate protection against such risks, you would need crime insurance. (You might find coverage for crime-related losses in package policies as well.)

Additional Details to Consider When Choosing an Insurance Policy

Your location is also a crucial factor in determining which insurance policy is best suited for your business. For instance, some of the most expensive commercial real estate insurance claims include environmental damage from wind and hailstorms, and fires. Depending on where your property is located, you will need to choose the appropriate policy to cover risks specific to your geographic region.

As you work through choosing your ideal insurance policy, ensure that you can check off each of the following coverage categories:

• Liability
  • Premises
  • Tenant
  • Auto
• Property
  • Building
  • Personal
  • Stock and Inventory
• Employee
  • Worker’s Compensation
  • Benefits

Be mindful when reviewing your business coverage needs and consult with an insurance provider to ensure you secure full protection of your commercial assets.

Read more at Parkstone Commercial Property Management