What’s Covered and What’s Not: Commercial Property Insurance

Commercial property insurance policies commonly include coverage for certain items while excluding others. In this blog, you’ll know what’s covered & not covered in Commercial Property Insurance. But, first things first.

What exactly is a Commercial Property?

Commercial properties refers to properties and buildings that are used for business or income-generating purposes rather than just residential purposes.

Here are some key points about Commercial Property:

Use of Commercial Property: Commercial properties are used for various business activities, such as offices, retail stores, industrial facilities, manufacturing plants, warehouses, restaurants, hotels, medical centres etc. These properties are designed and operated to generate income or profits.

Generating Profit: The primary purpose of commercial properties is to generate profit either through rental income from tenants or through capital appreciation when the property's value increases over time.

Distinguishing from Residential: Commercial properties are distinct from residential properties, such as houses, apartments, duplexes, and condominiums, which are designed for people to live in rather than for conducting business operations.

Common Examples: Some common examples of commercial properties include office buildings, shopping malls, factories, distribution centres, and hospitality establishments like hotels and restaurants.

Commercial Property Insurance

Owners and tenants of commercial properties often need commercial property insurance to protect their assets and investments. This type of insurance provides coverage for physical damage or loss to the property and its contents due to various perils like fire, theft, vandalism, and natural disasters.

What does it cover?

Commercial property insurance typically covers a range of items, including equipment, tools, furniture, fixtures, supplies, computers, electronics, outdoor signs, and more. The coverage can vary based on the specific needs and circumstances of the business.

Commercial property insurance commonly provides coverage for the following:
1. Personal and customer property
2. Furniture
3. Windows
4. Computers
5. Electronics
6. Tools & Equipment

What does it not cover?

While commercial property insurance covers many types of damage and loss, it often excludes certain risks, such as pollution, damage caused by fungi or spores, nuclear incidents, and damage resulting from war-related events. Businesses may need to consider additional endorsements or policies to address these excluded risks.

Commercial property insurance generally does not include coverage for the following:
1. Nuclear
2. War
3. Pollution

Need Commercial Property Insurance?
Commercial property has a wide range of properties and buildings used for business purposes, and commercial property insurance is essential to protect against potential financial losses associated with damage or loss of these properties and their contents.

If you are looking for a Commercial Property Insurance, A-kan Insurance can be your perfect choice. A-Kan Brokers understand the importance of developing a plan for continued financial security. They understand that running a business is a constant risk, and that’s why they lay out the best Commercial Property Insurance options in front of you, so you do not have to worry about a downfall in case of a major financial setback or inability to generate income.