When looking to secure commercial property insurance for your business or commercial property, there are four major factors that will influence not only the costs associated with your chosen insurance policy, but also how comprehensive your cover will be. Familiarize yourself with these factors below before signing up for any specific contract or in the case of small business owners, packaged policy coverage for insuring a commercial property.
Your selected policy should absolutely take into consideration the unique needs of your property, whether it be an apartment complex, factory unit, shopfront, office complex, or any form of leisure or recreational centre. Be aware of whether you possess a strata or community title, and be sure that you know the defined boundaries of your property so you have a consistently clear picture of exactly what responsibilities you have when it comes to securing your personal cover.
With apartments, townhouses, and office complexes, securing insurance can be as easy as signing up to the same policy as your neighbours. But for business owners conducting their business from more singular environments, like garages or specially-fitted shopfronts, there is a fair bit more that needs to be considered.
You’ll want to consider exactly what kind of small business or businesses will be operating from within the property. Think about what assets will need to be protected, as well as any potential avenues for litigation or any other industry-specific concerns. For example, if your commercial property is home to a barbershop, cracked mirrors, broken salon chairs, plumbing issues, and faulty light fixtures, all have the potential to disturb cash flow. Make absolutely certain that all foreseeable or potential concerns are covered by thinking critically about these concerns, and making time to communicate with your insurance specialist.
It’s also worth considering whether or not the business will be likely to experience rapid growth, resulting in an expansion of the body of staff and perhaps the accruing of more space. An increase in occupancy may also cause the cost of your cover to increase, so be sure to discuss this possibility with your attorney or insurance specialist prior to signing!
Volatile weather conditions are always a factor that will need to be considered when insuring any type of commercial or even residential property. Assess any environmental factors or potential concerns that accompany the property, such as the local climate, annual rainfall recordings, tall neighbouring trees, and also other weather-related or environmental claims made in the surrounding area.
But the importance of considering the location of your property doesn’t just stop at protecting the building against extreme weather. Geographic location can also play a significant role in the pricing of your policy, as inner city locations tend to have a more complex array of potential concerns, ranging from weather damage to vandalism and other forms of malicious damage.
Just as a mechanic’s garage has different needs to a restaurant or storefront, older properties have different needs to newer properties. Be mindful of the materials used to build your property and how long ago the property itself was constructed, so that you will be protected in the case of degradation. Assess all notable fixtures and fittings with the aid of a plumber, electrician, and any other necessary industry professionals.
A major concern with a lot of older buildings is asbestos, so you want to ensure that your property is covered in the event of claims of asbestos exposure. Small business owners should also consider taking out income insurance just in case the business is forced to close for asbestos removal.
As a landlord, property management company in Cincinnati or small business owner, it’s important that you consider these factors prior to selecting any single insurance plan for insuring a commercial property to ensure your cover is as comprehensive as possible and perfectly tailored to protect the property and the assets it may contain.