Commercial insurance is a little different than residential, and in some ways, it’s hugely different. When considering buying a piece of commercial property, one of the first things you’ll want to do is research the insurance you’ll need. When researching the different types of commercial property insurance, below are the ten main types you’ll be able to choose from.
- Auto Physical Damage Insurance
Since you cannot claim vehicles on either a business owners’ policy (BOP) or a basic commercial property policy, your commercial vehicles will need auto physical damage insurance. The good thing about this type of policy is that it doesn’t just cover collision costs but also costs related to fire, theft, and even vandalism.
- Commercial Crime Insurance
If it has to do with your business and there’s a crime involved, this type of insurance will cover it. Commercial crime insurance includes theft from your business location, someone forging a company check, and any wrongdoing by an employee. Even if you have a retail shop and you get paid with bills that turn out to be counterfeit, this type of commercial property insurance will cover you, giving you great peace of mind every day.
- Business Owners’ Policy (BOP)
The BOP covers both general liability and different types of property coverage, giving you just about everything you need to be fully covered. While you can choose only to cover your liability or your property, the BOP covers both of these things, and because it does, you’ll end up paying less for this type of policy rather than more. You can also feel free to add anything else to the policy for extra coverage, so you should have complete coverage from then on for your business.
- Glass Insurance
Many businesses don’t think about windows and other glass components in their business, but they should. And while some basic commercial policies cover glass, they often provide very little coverage or come with a high deductible. If you choose to get a separate glass insurance policy, it’ll be worth it because it covers all types of glass, including plate glass windows and basic store windows. Repairs to glass fixtures can be pricey, so this insurance is a huge help.
- Farmers’ Insurance
Farms are unique because they usually combine a business with a home; therefore, it can be challenging to find coverage for both. Whether you need to repair or replace equipment, silos, trucks and tractors, barns, and even livestock, you need a reliable insurance policy to help you. If your crop consists of food products, you don’t have to worry about what you’ll do if inclement weather causes crops to die.
- First-Party Cyber Insurance
If the security at your facility is breached, you’ll find first-party cyber insurance invaluable. This type of commercial property insurance covers things such as when data and information are stolen, information is destroyed, notifying customers, hiring an investigator, and anything else related to the process of getting your business back on track. Customers depend on you to protect their personal and financial information, and it’s good to know there is someone there to help take care of these situations.
- Business Interruption Protection Insurance
Temporary interruptions in your business can happen from time to time. When your business has to be closed for a time, this type of insurance will cover the loss of income and other expenses you’ll incur while you’re waiting for things to get back to normal. It will pay for temporary rentals, payroll taxes, salaries, and just about anything else that your standard business insurance policy usually doesn’t cover.
- Inland Marine Insurance
This type of insurance will cover if you’re moving furniture, large pieces of equipment, or other items that become damaged while in transit. Also called business equipment protection insurance, this insurance even reimburses you if you suddenly clean houses and your vacuum cleaner breaks down. Even if the items are borrowed or rented, inland marine insurance will still pay.
- Ordinance or Law Insurance
This type of commercial property insurance covers the costs of bringing a building or facility up to code, especially if you’ve recently suffered a loss because you were not up to code. Demolition and rebuilding of a structure will bring on additional costs you’ll have to pay, but not when you have ordinance or law insurance.
- Accounts Receivable Insurance
If you break a computer that is filled with credit receipts or you lose any type of payment records due to some type of loss, accounts receivable insurance can reimburse you for trying to get all of this back. With the money you get from this insurance, you can build a better accounts receivable system, recover lost data, and even pay back loans if you had to borrow money because of the situation.