Businesses that own buildings and/or land have made substantial investments in their assets, and those investments ought to be protected. Commercial property insurance helps businesses protect their physical assets located in Massachusetts from a variety of potential perils.
Commercial property insurance is a specialized form of property insurance that’s designed for businesses rather than individuals. While some coverages may be similar to personal property policies (e.g. homeowners policies), there are differences in what coverages are commonly offered. There also are frequently differences in the terms, conditions, exclusions and limits of the two types of policies.
The vast majority of Massachusetts businesses that own buildings or other sizeable physical assets in the state should consider getting business property insurance. Without coverage, recovering from a disaster that causes major damage could be financially devastating to a business. In some cases, businesses might benefit from a business property policy.
Most business property policies include two coverages that businesses may get:
Building Coverage, which may insure buildings and other structures owned
Contents Coverage, which may insure equipment, inventory and other items
Some businesses that don’t own buildings may still want business property insurance for their equipment, supplies, inventory or other physical assets.
In these situations, an insurance agent who specializes in business property policies can help find policy options that offer protection for equipment and other contents without requiring businesses to pay for building coverage that they don’t need.
Liability coverage is an important component of business insurance. Businesses normally acquire liability protections they need through other insurance policies.
(This is one coverage area where commercial property policies tend to differ from homeowners policies, which often do include liability coverage for the homeowner.)
Insurance companies consider many different factors when setting rates for commercial property policies. Some of the factors that might influence how much a policy costs include the:
Location of the insured property
Size of the insured property
Structure of the insured property
Value of the insured property
Coverages and limits selected for the policy
Past claims history of the purchasing business
An independent insurance agent can help businesses compare policies from several insurance companies, making it easy to see what different insurers will charge to insure a particular building. When comparing policies, an agent can also point out any coverage variances that may account for premium differences.
Commercial property policies generally are written as either “open perils” or “named perils” policies. The former tends to cover any risks that aren’t excluded in the policy’s paperwork, and the latter typically covers only those perils that are specifically listed in the paperwork. Broadly speaking, open perils policies usually offer more robust protections than named perils policies.
For help finding commercial property insurance, contact the independent insurance agents at Roger Keith & Sons Insurance Agency. Our experienced team has helped businesses insure buildings and other property throughout Massachusetts, and we’re ready to assist your business with its property insurance needs