Introduction to Commercial Property Insurance
Commercial Property Insurance is a very important coverage for a business that needs a specific set-up of tools and equipment (such as - a business catering to the manufacturing of heavy machineries) and/or uses a particular building or facility (example: a store) to operate. However, it is almost equally important to small scale business as well, since it provides a cushion of safety to them to safeguard their business properties from a number of risky events, as per the contract provisions.
Definition:
Commercial Property Insurance is a protection meant for the business owners’ property including the workplace (i.e. a building, store, workshop etc.) and its contents, often referred together as …show more content…
Peril-specific policy: These contracts serve to protect the business from the incurred loss and damage from a selected list of events as mentioned in the contract provisions. In most cases, it includes events like flood, fire, crime against the business property etc.
As the names suggest, these 2 types of commercial property insurance basically provide the same type of protection, only the covered events vary by degrees.
Applicability:
In a broad perspective, the commercial property insurance is applicable to and required for the following types of business:
a) All businesses that involve manufacturing and/or repairing a product with the help of tools and machinery in a specific workshop or factory. Example: steel manufacturing companies
b) Businesses that are operated from a specific building and/or facility. Example: a retailer’s storefront, a restaurant etc.
c) Service industry related businesses that need dedicated office space and equipment. Example: software companies, customer service oriented offices etc.
d) Home-based offices of small scale businesses. Example: start-ups that operate from the owner’s home premises …show more content…
If the geographic area or the demography of the business’ operation seem to be prone to natural disasters like flood or frequent hailstorms, or to severe civil unrests, it maybe more beneficial for the business to go for Peril-specific policies instead of All-risk policies. Once again, it would be wise to seek counsel from authorized and competent insurers to analyze the risks properly and zero in on the most useful form of insurance protection for the
Commercial Property Insurance is a very important coverage for a business that needs a specific set-up of tools and equipment (such as - a business catering to the manufacturing of heavy machineries) and/or uses a particular building or facility (example: a store) to operate. However, it is almost equally important to small scale business as well, since it provides a cushion of safety to them to safeguard their business properties from a number of risky events, as per the contract provisions.
Definition:
Commercial Property Insurance is a protection meant for the business owners’ property including the workplace (i.e. a building, store, workshop etc.) and its contents, often referred together as …show more content…
Peril-specific policy: These contracts serve to protect the business from the incurred loss and damage from a selected list of events as mentioned in the contract provisions. In most cases, it includes events like flood, fire, crime against the business property etc.
As the names suggest, these 2 types of commercial property insurance basically provide the same type of protection, only the covered events vary by degrees.
Applicability:
In a broad perspective, the commercial property insurance is applicable to and required for the following types of business:
a) All businesses that involve manufacturing and/or repairing a product with the help of tools and machinery in a specific workshop or factory. Example: steel manufacturing companies
b) Businesses that are operated from a specific building and/or facility. Example: a retailer’s storefront, a restaurant etc.
c) Service industry related businesses that need dedicated office space and equipment. Example: software companies, customer service oriented offices etc.
d) Home-based offices of small scale businesses. Example: start-ups that operate from the owner’s home premises …show more content…
If the geographic area or the demography of the business’ operation seem to be prone to natural disasters like flood or frequent hailstorms, or to severe civil unrests, it maybe more beneficial for the business to go for Peril-specific policies instead of All-risk policies. Once again, it would be wise to seek counsel from authorized and competent insurers to analyze the risks properly and zero in on the most useful form of insurance protection for the