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Commercial Real Estate Insurance

What’s in your commercial real estate portfolio?  Maybe your renovated strip mall is attracting upscale tenants.  Perhaps your family business thrives on a mix of industrial properties, warehouses and distribution centers.  Or you might own office buildings and self-storage facilities.

Each commercial property is unique, and an insurance agent/broker can show you a full menu of business insurance options to help manage specific risks.

You have invested a lot of time and finances in growing your business and you need commercial real estate insurance that can help you weather any storm – natural or man-made.

According to the National Association of Realtors, commercial real estate in 2015 included more than $29.3 billion in industrial property, $14.2 billion in office property and just over $5 billion in retail property. How much is your property worth and what can be done to protect against any losses?

Whether your business involves one of these industries, or you take part in all of them in your commercial real estate holdings, you need the right insurance to guard against your risks.

Types of Commercial Real Estate Insurance

The two most common types of commercial real estate insurance are commercial property insurance and general liability insurance. As the name suggests, commercial property insurance covers your buildings and equipment for damage caused by extreme weather events, fire and some crimes such as vandalism.

A general liability insurance policy protects your commercial real estate from a lawsuit should a third party experience injury or property damage while on your premises.

The policies you need and the premiums you pay depend on the type of commercial real estate you own and the type of business(es) you operate on the property.

What Is Covered Under My Commercial Real Estate Policy?

Most damage to your property caused by extreme weather events (excluding floods and earthquakes) is covered by a commercial real estate property insurance policy.

Many businesses are vulnerable to losses from crime. According to the FBI, arson cost commercial real estate owners in the industrial and manufacturing sectors an average of $168,000 per incident in 2014. Other commercial real estate owners can expect damages due to arson to cost an average of $57,000.

Here are the 10 costliest commercial real estate insurance claims:

  • Theft and burglary
  • Water and freezing damage
  • Wind and hail damage
  • Fire
  • Customer slip and fall
  • Customer injury and damage

A commercial real estate insurance policy that includes property and general liability coverage will help ensure that most of these costs do not affect your bottom line.

Property insurance can help you repair or replace your damaged buildings; liability coverage can help pay for your legal defense and any settlements should you face a lawsuit.

Which Commercial Real Estate Insurance is Best for My Business?

The coverage you need and the options you choose depend heavily on the type of commercial real estate you own.

Smaller and mid-size companies often purchase a commercial real estate package policy known as a business owners policy (BOP). Commercial real estate coverage in a BOP includes property insurance for buildings and contents owned by the company and liability protection to cover a company’s legal responsibility for the harm it may cause to others.

Larger companies might purchase a commercial real estate insurance package policy or customize their policies to meet the special risks they face.

Understand your options to find personalized coverage for commercial real estate.  Call a local professional agent today.

Craig Davis is an agent for FarmersInsurance and the owner of Craig Davis, Family Insurance located at 27645 Jefferson, Suite 113, in Temecula. He maybe reached at (951) 699-1776. cdavis@farmersagent.com.

Written by Craig Davis

Craig Davis is an agent for Farmers Insurance and the owner of Craig Davis Family Insurance located at 27645 Jefferson, Suite 113, in Temecula. He may be reached at (951) 699-1776. cdavis@farmersagent.com

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