Property
Protecting your building and its contents is the first thing that comes to mind when considering commercial insurance. But in addition to protecting your investment, you may also be responsible for property belonging to others on your premises.
Here's what your commercial property insurance policy should protect:
- The building, plus any permanent fixtures, fittings, extensions, etc.
- Equipment, furniture, machinery, tools and appliances
- Merchandise
- Packing, wrapping and advertising materials
- Property belonging to others for which you are legally liable
- Improvements you have made to a building you don't own
To ensure you are adequately protected, you will be asked to provide
a list itemizing the value of each item you want to insure. Typically,
insurance policies refer to Actual Cash Value (cost to replace item plus
appreciation and less depreciation) or Replacement Cost (the cost of repairing
or replacing damaged property) )
when referring to the value of property.
Coverage can be basic or broad, depending on individual circumstances and
needs. A basic policy will cover you for Named Perils (specific about the
types of incidents it will cover such as perils of fire and lightning,
explosion, impact by aircraft, impact by spacecraft, riot, smoke, windstorm,
hail and leakage from sprinklers) while broader coverage is available under
a Broad Form policy (covers losses caused by all perils except those that
are specifically excluded by the policy).
