Understanding Insurance Minimums and Requirements

4 features to look for in a commercial property insurance policy

Property insurance is a common type of business insurance policy. It covers the physical space of your building or office against any damage and repair costs. It also covers the contents inside your building, including furniture, inventory, office equipment, client property and much more.

In the event that your office or supplies are damaged, you can make a claim for compensation to reduce disruptions in your daily business tasks. But when shopping around for a policy, remember that not all insurance companies are the same. Look for a policy that meets the specific needs of your business.

Here are four essential features that should be included in your commercial property insurance policy.

1. High limits of liability

Depending on the size of your business, you may need to make a high claim for damages incurred to your office building. For example, theft and vandalism could result in thousands (if not millions) of dollars in damages. Therefore, you need to select a policy that can cover a significant portion of those risks. If your limit of liability is low, you may end up being underinsured against damages to your building and equipment.

Make sure you carefully explore multiple policies and their limits. You should also compare how much you're willing to pay in premiums versus the limit of your specific policy.  

2. Underwriting

Underwriting is the process through which your insurer will evaluate the assets on your property to determine their true value. While underwriting is important, make sure you work with an insurance company that doesn't overcomplicate the underwriting process.

Insurers have developed an efficient mechanism for valuing many different types of property, from HVAC systems to antique furniture. Therefore, look for an experienced insurer who won't tale weeks or months underwriting your items and delaying compensation for your claim.

3. Multiple coverage options

Another feature to look for is extensive coverage options within your policy. Rather than taking out many different policies for each item in your building, a more efficient approach is to work with an insurer who can extend coverage to the building itself, furniture contained therein, property belonging to third parties and even signs that are affixed to the office space.

The most basic property insurance policy you should consider should cover the following components:

  • Lighting fixtures
  • HVAC systems
  • Ductwork
  • Inventory
  • Furniture
  • Machines and equipment
  • Customer property

4. Discounts on premiums

Insures provide many different discounts that can help you save on premiums. For example, there are discounts for not making a claim over a specific period, discounts for bundling many different policies and discounts for selecting a certain type of coverage. Explore your options and inquire about any available savings opportunities.