Your business would suffer significant losses in the event of a fire, flood or burglary. Commercial property insurance is your best protection against these losses. If you wish to buy commercial property insurance, read this extract for some insights. 

How Does Commercial Property Insurance Work?

Commercial property insurance covers business assets such as buildings, machinery and electronic appliances when a named peril occurs. In most cases, the named perils are fire, theft and natural disasters. That coverage does not extend to vehicles. You will need commercial auto insurance to cover the business vehicles. Businesses do not take the cover in some cases since the landlord has insured the building. However, the policy does not cover any property owned by the tenants. Therefore, you need you're a separate policy. Commercial property insurance is considered a business expense in most countries and is, therefore, tax-deductible.  

Do you Need Add-Ons When Buying The Policy? 

When buying commercial property insurance, the secret is to ensure it is customised to suit your business operations. For example, what natural disasters is the area susceptible to? You may need an add-on if the insurer does not include all-natural disasters in the standard cover. For instance, it is not uncommon for some insurers to include floods and fires but leave out storms and earthquakes. If your business moves equipment from one location to another, you need damage to a mobile property add-on. For instance, suppose you run a filming business; you will often move expensive cameras to different locations.

Considerations When Buying Commercial Property Insurance? 

Start by creating an inventory of the assets that you need to be covered. Appraise these items to establish the required coverage. The insurance company also conducts its independent analysis to assess the different risks to your assets. In most cases, you can significantly reduce the premiums if you make improvements to make the premises resistant to various disasters. For example, a high-tech alarm system will help prevent burglaries, while retrofitting and floodproofing the building will limit flood damages. Fire extinguishers, sprinkler systems and ventilation systems can help control fire damage. 

It is possible to bundle commercial property insurance with other types of business insurance. For instance, some insurance companies will allow you to combine the cover with general liability insurance. It is a sure way to reduce insurance premiums. 

As a rule, ensure that you vet the insurance company providing the commercial property insurance coverage. Besides, remember to negotiate the premiums and review the cover when you purchase or sell business equipment.  

For more info about commercial property insurance, contact a local insurance company.