Small, local businesses are have always shaped neighborhoods and communities in this country. For the communities that depend on them, protecting these businesses is an important part of business ownership. This requires purchasing the right local business insurance, since it is the smaller businesses that have the most to lose if a damaging event were to occur. Good commercial property insurance can make the difference between staying in business – and closing the doors for good.
The Value of Commercial Property Insurance
For the smaller, local business, staying in business when surrounded by mega conglomerates is not easy. Every expense must be carefully calculated – and costs kept to a minimum. Yet it is risky for a small, local business to skimp on local business insurance. No one plans to have a major loss, such as those from fires, weather events, or other incidents; yet, accidents do happen. Having the right insurance to replace lost equipment and buildings is essential for a company to get back on their feet as quickly as possible.
Commercial Property Insurance Coverages
Following are some of the different types of local business insurance a company can purchase based on their needs and the risk they face for this type of loss:
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Basic Coverage – This local business insurance covers common perils, which are events are more likely to happen and affect a business than other perils. Common perils usually cover damages resulting from fires, windstorms, lightning, vehicles, and acts of vandalism or civil unrest.
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Broad Coverage – This type of local business insurance applies to the above events as well as additional coverage for damage from water, ice, sleet and snow, structural collapse, and sprinklers.
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Special Coverage – This local business insurance covers all perils other than those specifically excluded from the policy. Flood, earth movement, insect and vermin damage are usually excluded from most policies, as are acts of war, terrorism or nuclear disaster and crime. Anything excluded must be covered under a separate, specific policy.
A local business insurance policy must also define whether a policyholder is insured for replacement cost or actual cash value, which differs greatly. Replace cost covers any potential value depreciation of insured items.
Types Of Commercial Policies
If a policy meets state minimum insurance requirements, a company can purchase a policy to meet unique coverage needs. This make it possible to get a local business insurance policy most beneficial to that business, providing greater or more extensive coverage where needed – and less where not needed. Following are two examples of available commercial policies:
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CMP – A CMP or Commercial Multi-Peril policy is written to include multiple insurance products under one policy. This type of local business insurance often includes commercial property, liability, auto, and even inland marine and costs less then when each is purchased separately.
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BOP – A BOP or Business Owner Policy is designed for a small business and includes only commercial property and liability insurance, making them popular and affordable for many small local business owners. A BOP policy is very basic and may need additional local business insurance coverage.
Commercial insurance products vary greatly depending on the type of business, insured property, and other variables including geographic region. To purchase the best local business insurance for your company, a business owner should contact an established local insurance company that offers commercial property insurance.
It is important to be prepared for the unexpected, especially when a company’s survival is at stake. Having the right insurance policy covering buildings, equipment, and other expenses can help your company suffering from a loss rebound and continue with business as usual in the local community!