Damage on a commercial property, whether it’s a warehouse, storefront, or another business-related area, can be devastating to a business. Commercial property insurance exists to compensate for unanticipated problems such as earthquakes, fires, pipe bursts, theft, or vandalism. Commercial property insurance is actually a subset of business insurance, which is designed to protect you against a range of problems that could impact your bottom line.
Commercial umbrella insurance protects your commercial property and goods in circumstances when your employer’s liability or commercial automobile policies don’t apply. The umbrella insurance often doesn’t come into effect until after any other relevant policy limits have been reached. So, it’s important to consider what insurance policies you already have, as well as the type of coverage still needed by your business. The services covered in the policy can depend on the type of business, any coverages already in place, assets that will require protection, and risks that aren’t covered under any other plans. Below are a few types of coverages provided by a commercial umbrella insurance plan:
1. Buildings and other structures
First and foremost, you want to make sure that the buildings tied to your business are adequately protected, especially if they store product. If these buildings are damaged for any reason—either due to willful harm (e.g. vandalism) or due to a natural disaster—you’ll want to ensure that you have insurance to help pay for the repairs.
If your business requires storing product for any length of time, you will want to invest in inventory protection under a commercial property insurance plan. Inventory can easily get lost, damaged, or stolen, which could lead to financial hardship for your business.
These days, information can easily be stolen—especially if it is stored online (even if it’s in a secured server). Hacking incidents are becoming more and more common, so it is more important than ever to invest in protection. Paper files can easily be stolen, too.
Technology for your business can be very costly. You want to make sure it is adequately protected. If the devices are stolen, damaged, or misplaced, you will save in the long run by investing in insurance to cover the cost of any repairs or replacements.
5. Hired and Non-owned Auto Liability
This is different from regular commercial auto insurance in that it covers vehicles you “hire” (e.g. rental cars) as well as any cars your business does not own (e.g. employees’ vehicles). Many people assume that commercial auto insurance will cover any automobiles related to business events, but this is not true! Carefully review your businesses automobile insurance to make sure you’re covered.
Always Check with a Professional
Sometimes, insurance providers can tailor more broad, or “umbrella,” protection policies to suit a business owner’s unique needs. If you have questions about what kinds of coverage you may need, check in with a professional insurance company—they can provide the best advice about which precautions you should be taking to protect your business.