Building Insurance

Commercial building insurance, otherwise referred to as commercial property insurance, is what protects the building your business operates out of from a list of named risks. More than the building itself, though, commercial property owners insurance also covers the costs of replacing the items inside your building.

This includes things like:

  • Business inventory
  • Business equipment (cashiers and computers)
  • Furniture
  • Shelving and fixtures
  • Equipment used for your business (conveyor belts, machinery, etc.)
  • Outdoor signage
  • Fencing and landscaping
  • Property of others

All these things are covered by your business insurance when damaged or destroyed by covered events as laid out in your insurance policy.

What are Covered Events for Business Insurance? 

Covered events vary, to some degree, from one insurance policy to the next. While most include the following types of damage, there are some that may protect against more or less of these events:

  • Fire and smoke
  • Vandalism
  • Wind-drive damage
  • Hail
  • Internal water damage (not flooding)
  • Explosions
  • Ice and snow damage, caused by collapsing roofs
  • Theft 
  • Civil disturbance-related damage

Check your policy for specific coverages and exclusions and to make sure you’re comfortable with the monetary coverage for these types of damage. We can help you navigate the process to make sure you get the protection you expect from your policy.

Do You Need Additional Protection?

For many businesses, building insurance is part of a business owners policy or BOP. This policy offers basic protection for damage to your building from covered events. Unfortunately, that isn’t always sufficient coverage for your needs. 

Depending on the industry you’re in, you may need additional insurance protection, beyond the building coverage included in the BOP, such as:

  • Business income insurance. This will replace lost income while repairing or rebuilding your business from damaged caused by covered events.
  • Extra business personal property coverage. Some equipment and inventory exceed the coverage in your business owner’s policy, requiring you to purchase more to get the protection your business required.
  • Building ordinance coverage. To bring your business up to current codes – even areas undamaged by the covered event, when local regulations require it.
  • High-value items, inventory, and equipment coverage. This includes things like electronics and office equipment, as well as the products you sell. 
  • Flood insurance. Since most business owner’s policy and commercial building insurance policies explicitly exclude flood damage for coverage, this is one of the more critical standalone policies for business owners to purchase.
  • Earthquake insurance. Also, specifically excluded by most insurance policies, earthquakes can strike any location, even if you’re not located on an active fault. It is sometimes better to be safe than sorry.

The big question that only business owners can answer for themselves is whether to insure the commercial property for its full value or to take some of the risk as your own. We’ll discuss your options and help you come up with a solution that gives you the protection you desire and the peace of mind you require.

Contact Generazio Associates at (973) 429-8100 to discuss how we can help with your building insurance needs.