All small businesses need commercial property insurance. Commercial property insurance or commercial real estate insurance not only covers actual storefronts or real property, it also covers business property inside your store or office. Commercial real estate insurance covers the actual real estate and building.
Business equipment, office equipment, computers, office furniture and supplies necessary to do business are covered under commercial property insurance. Property owner insurance is a must if you own the real estate.
Business owners who do not own their own property also need business property insurance. If your business rents or leases the property where you do business, the owner will have property insurance on the building itself. However, as the business owner, you need small business property insurance to insure equipment, supplies, signs and any property you may be holding for customers.
Property insurance protects your small business and business property insurance gives you an umbrella for your business needs.
Commercial property insurance includes property owner insurance, but should also cover other liabilities that arise from your business. Liabilities can arise from:
- The general public being injured in your place of business;
- Damages to the property of customers while it is in your place of business; and
- Damage caused by you or your workers in the home or property of a customer.
Action Steps
The best contacts and resources to help you get it done
Buy commercial property insurance specific to your business
Carry all the types of commercial property insurance your particular small business needs. Property owners need the building and contents insured under their commercial property insurance. Make sure the property insurance quote you get includes coverage for business equipment, business vehicles, office supplies, computers and technical equipment. If your business has specialized equipment, make sure the property insurance companies are aware of the current and replacement value.
I recommend: Check out the
Insurance Information Institute for in-depth insurance information specific to your business needs.
Add liability to your property insurance coverage
Service related small businesses need to carry adequate amounts of liability on their commercial property insurance. If your small business is a restaurant, motel or other service related business, you need protection from public claims of injury. For example, if you own a restaurant, you need property insurance for fire; liability if there is a slip and fall or a customer gets sick at your business.
I recommend: Choose a Business Owner Policy, or
BOP for small business with less than 100 employees. A BOP wraps commercial property insurance with commercial vehicle insurance and can be less expensive. Make sure liability insurance is included in your policy.
Get property insurance quotes from more than one company
Compare commercial property insurance and property insurance companies online, before you buy. Select the type of property insurance you want and use an insurance quote form online. This is a great time saver because you can receive up to ten quotes just by filling out one form.
I recommend: Using
Netquote to receive property insurance quotes from several property insurance companies with just one form to fill out.
Invest in a sound property insurance company
Educate yourself about property insurance companies, their good or bad ratings as financial institutions and ratings from customers. Property insurance companies need to be strong financially as well as offer excellent customer service.
I recommend: Check the
rating of the property insurance company that you’re looking into. Review the
customer satisfaction rating of the property insurance company as well.
Tips & Tactics
Helpful advice for making the most of this Guide
- Contact any professional organizations you belong to regarding commercial property insurance, you may save money as a member.
- Update your commercial property insurance when new equipment or vehicles are bought, to assure you are totally covered.
The official source of Property Insurance for Small Business Owners is
the Property Insurance page at Business.com
Related Resources from Business.com
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