Commercial Property and Inland Marine
One of the most common types of business insurance, commercial property insurance provides a wide range of coverage for buildings, inventory, equipment, tools and more. Losses from fire, break-in, vandalism, windstorm and other natural or manmade disasters are examples of what is typically covered.
A basic commercial property insurance policy may be all you need, although the types of coverage can vary between different insurance companies. As an independent agent, C.K. Ash Insurance can help you determine the type of insurance policy and range of coverage that is best for your business.
What you need to know about commercial property insurance
• Building – Do you own a commercial building? If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building.
• Business Personal Property – Business personal property insurance covers property at a specified location for furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an inland marine policy (equipment or installation floater).
• Business Income (Business Interruption Coverage) – This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed. It applies while the premises are being restored because of damage from an event, such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. C.K. Ash Insurance strongly recommends that all businesses acquire this coverage.
• Equipment Breakdown – This coverage is for a loss due to mechanical or electrical breakdown of most equipment, including computers and copiers. Coverage applies to the cost of repairing or replacing the equipment and any property damaged by the equipment breakdown. Equipment Breakdown is quickly replacing most companies Boiler and Machinery coverage because it is broader and more descriptive of the coverage provided.
• Electronic Data Processing (EDP) – This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks. For more in depth coverages for networks see Cyber Liability under the Miscellaneous Insurance.
Inland Marine Coverages
Most property away from your premises or property of others is typically not covered under the normal Commercial Property coverage; that is why Inland Marine coverage is offered. In many cases businesses look to this coverage for their equipment, materials, cargo, etc. Here are some common coverages that your business may need:
- Equipment Floater – Coverage for equipment while moving from location to location.
- Installation Floater – Coverage for materials being installed at a jobsite and away from your premises.
- Builders Risk – Coverage for property in the course of construction; this coverage is much broader than a Home Under Construction policy or Homeowners policy. For example the Builder Risk gives coverage for materials not installed yet and coverage for Flood losses.
- Transportation/Cargo – This coverage is for property while in transit.
- Scheduled Property – Coverage for items not typically covered under Business Personal Property such as jewelry, fine arts, antiques, etc.
- Accounts Receivable – Coverage for loss of sums owed to the insured by a customer because of damage to accounts receivable records.
- Valuable Papers – Coverage for the cost to reconstruct damaged or destroyed valuable papers or records.