Why Do You Need to Examine Your Commercial Building Insurance Needs?

Understanding commercial building insurance needs is crucial for a start-up, as every business insurance policy must be customized. Most commercial leases mandate that either the landlord or the tenant of a commercial property carry appropriate insurance coverage. Some complexes require both parties to carry insurance. Here’s a simplified look at the complexities and nuances of commercial building insurance.

Types of Commercial Insurance

While the two main types of commercial insurance are property and casualty coverage, there are also many variations to account for the wide range of industries with different insurance needs. Property insurance is necessary to cover hard assets against disasters. Some of the different types of property insurance include inland marine, which protects the property in transit, and crime insurance, which covers damage from theft and vandalism. Casualty insurance covers various types of business liabilities, including workers’ compensation.

What Does a Commercial Insurance Policy Cover?

Coverage for commercial building insurance usually protects a business from financial losses resulting from property damage, employee injuries, business interruption, or other liabilities. It’s wise to have the right policies in place in case a disaster disrupts the business. Here are the main components of a standard Commercial General Liability (CGL) insurance policy:

  • Bodily Injury and Property Damage Liability – An establishment must protect itself against lawsuits in which a customer is injured on the property. Mental injuries can also be considered as bodily injuries in certain cases. This policy does not cover workers’ compensation, which must be purchased separately. Pollution liability can also be purchased as a separate policy.
  • Personal and Advertising Injury – This policy protects a business from liabilities revolving around libel, slander, false arrest, and copyright infringement. It further protects against lawsuits such as malicious prosecution, lifting an advertising idea from a competitor, wrongful eviction, and invasion of privacy.
  • Medical Payments – When non-employees are injured in a workplace accident, their medical payments are covered by the standard CGL policy. This coverage helps settle cases promptly outside of litigation as coverage is provided on a no-fault basis. It covers all necessary medical procedures, as well as ambulance or even funeral expenses for victims.

Additional Commercial Policies

The right amount of insurance coverage is different for each business, depending on its size, the number of employees, type of work, and the dangers involved. Following a detailed insurance guide is the best way to stay on top of all your insurance responsibilities. Some companies that just process orders online with minimal remote workers don’t need as much insurance as a construction company that contracts with dozens of subcontractors.

Certain businesses like bars and restaurants that serve alcohol need liquor liability to protect against damage caused by an intoxicated customer. This coverage is necessary for any business that manufactures, sells, or serves alcoholic beverages. Without this extra coverage, your company will not be protected against claims that relate to alcohol.

Pollution liability is a growing concern among manufacturers due to communities fighting back against toxic waste and environmental damage. This policy protects against unforeseen environmental damage that can lead to the hospitalization of workers and patrons. The policy further protects against financial declines resulting from exposure to environmental damage.

Different insurance companies offer different packages, but generally, the three main ways to purchase commercial general liability insurance are a stand-alone policy, a Business Owners Policy (BOP), or a Commercial Package Policy (CPP). Additionally, you may consider an umbrella policy that bundles all your coverage together. Talk with your insurance agent to discuss your options.

Every business owner who buys, leases, or rents commercial property should be aware of their commercial building insurance needs. For more questions on commercial building insurance, contact our experts at Pittman Insurance Group, LLC. Our dedicated team is eager to help you with your questions.

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