Have you ever wondered about commercial Property Insurance coverage? If you’re already a commercial property owner, or thinking about buying a commercial property, you might want to read up on this crucial coverage. Building up your commercial real estate portfolio is an exciting endeavor, but it also comes with a great deal of responsibility.

Essentially, being a landlord means that you have the opportunity to turn a great profit in the right situation, but you also want to be sure to protect your personal and professional financial interests in the event of an unforeseen problem arising.

If you’re ready to start looking for commercial property insurance coverage in Pennsylvania, let’s take a look at exactly how it works and why you need it.

What does Commercial Property Insurance Cover?

No matter whether your business vision is large or small, you need to protect yourself and your property in case the unexpected happens. Different insurance providers will usually customize your policy to meet your business’s specific or unique needs. In fact, many providers will usually “bundle” policies to meet all of your needs instead of requiring you to purchase each policy separately, which will be more financially desirable and much less of a headache when filing or processing claims. Here are some examples of what can be covered in the area of physical property:

• Office space
• Furniture/furnishings (including lighting fixtures)
• Office/business equipment (like machinery, computers, phones, tools, etc.)
• Inventory/goods sold by your business (including perishable items, like food products)

Commercial property insurance claims that are approved will apply benefits in one of two ways:

• Cash Value
• Replacement Value

Choosing a cash value option for your commercial property insurance means paying a cheaper premium, but most insurance companies will only pay the cash value of what an item is currently worth. This can backfire many times, as most items’ current cash values depreciate over time. This could mean that you might be paying out of pocket to replace these items.

The replacement value option usually carries a more expensive premium, but it’s usually worth it, depending on the item(s) covered. This option ensures that you’ll receive the same item as a replacement, without having to worry about the item having a depreciated cash value, like you would with the other aforementioned option.

When weighing your options, choose which would be the best fit for you and your unique business needs. For some, selecting the cash value option may make the most sense and be the best monetary decision, despite the cash value depreciation factor. Others may feel it is in their best interest to opt for the replacement value option, particularly if they know that the physical property items they’ll be covering would not be worth it if only considering the current cash value.

Being connected with insurance agency specialists/customer service representatives that are dedicated to connecting with your individual needs and circumstances will provide an insurmountable amount of help and insight when attempting to make decisions like these. You can rest assured that you’ll have the proper coverage in the event that it is needed one day.

Another important situation to consider is whether you need commercial property insurance for owners or commercial property insurance for renters. For example, if you are renting office space in a commercial property, you can purchase coverage to include your owned items in addition to items or equipment that you may be leasing, depending on arrangements with the property owner (your landlord).

If you are the property owner, you can purchase coverage to include the building itself and everything in it, down to any electrical and mechanical systems that may be involved.

Why Do You Need Commercial Property Insurance Coverage?

In addition to protecting your property in the case of unfortunate events such as fire, theft, natural disasters, and more, it is often required by law in many areas. When comparing the cost of paying for coverage or having to pay out of pocket in uninsured circumstances, the benefits far outweigh the risk of not purchasing and maintaining commercial property insurance coverage.

In fact, here are two other types of property owner coverage that you can bundle together as part of one policy with your commercial property insurance coverage, depending on the insurance provider you choose to do business with:

1. General Liability Insurance

this type of insurance will protect your small business from things like injuries that occur with employees on your property, visitors, or tenants. Property damage that occurs as a result of tenants’ actions can also be covered, as well as advertising damage.

2. Commercial Auto Insurance

this type of coverage can protect any automobiles that are owned and operated by the business. This is an important type of coverage to consider, because most personally-purchased car insurance policies may not cover damage or losses related to your work vehicles.

Are you operating your business out of your own home? At times like these, during an unprecedented global pandemic, more people than ever are doing just that.

However, your homeowners’ insurance most likely will not cover items relating to your business just because you may be conducting company business from your house. This is another situation and reason in which you would be well-advised to have commercial property insurance in place.

You don’t want to be in a situation where you think you’re covered working from your residence and then not have your damaged or stolen company property covered after suffering a loss.

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