Commercial Property

Protecting your business’s physical structure and the items inside is more than just practical, it’s necessary. Consider the amount of money that you’ve invested in keeping your company up and running. Now, consider how a business interruption due to property loss could affect your profit margin. What if your company’s building is damaged during a fire and must close for repairs? What if there is a robbery and your equipment is stolen? Do you have the safeguards in place to protect your company against the costs of replacement, repair and income loss?

Commercial property insurance typically compensates for losses due to fire, theft, internal water damage and vandalism. It reimburses you if damage or destruction is caused to your company’s:

  • Building
  • Signage
  • Fencing
  • Landscaping
  • Furniture
  • Fixtures
  • Equipment
  • Machinery
  • Tools
  • Inventory
  • Valuable documents

In order to make sure your commercial property insurance policy protects your company, conduct a full inventory of all your physical assets prior to an incident. Don’t wait until a fire has destroyed your business’s property to try to record everything of value.

It’s also important to note that when compensating your company for lost items, insurance carriers pay based on the replacement cost (RC) or the actual cash value (ACV) of the item. The RC refers to the amount needed to replace lost items or repair your property without accounting for depreciation, while the ACV takes depreciation into account. ACV coverage typically has lower premiums than RC coverage.

Business interruption insurance can be added to your property insurance package to help you through any downtime that your business may experience due to property loss. Both types of coverage can be combined with commercial liability insurance to form a comprehensive business owners policy.

For an audit of your current policy to identify any coverage gaps or to explore your coverage options, contact The SIG Insurance Agencies at (203) 359-0880 or fill out the form on this page.