One of the very important parts of the financial plan of a business is the allocation for commercial property insurance. It is crucial to have a good understanding about the various aspects of commercial insurance, especially about its coverage. Commercial property insurance becomes important in the light of the fact that all businesses at some point of time may have to recover from losses due to damage of property. For commercial property insurance policy to stay in force, all that the company has to do is to pay the insurance premium. It is wise for the business to pay up this amount which may be very small compared to a huge unpredictable financial loss that may occur in the future.
It is very important for businesses to be covered adequately by insurance policies. Different states have different laws that make it mandatory for businesses to possess insurance. Nevertheless, all events may not be covered by a commercial property insurance policy. Some of them are earthquakes, floods, destruction due to acts of war, damage of property in disrepair (including plumbing, wiring, heating, air conditioning, and roofing failures), etc. Most insurance companies explicitly indicate the events that are covered in the terms and conditions of the policy. Many insurance companies’ policies cover damages that are caused by tornadoes, hail, hurricane and fire.
A commercial property insurance policy provides many benefits to the policy holder. Different insurance companies offer different policies. It, therefore, becomes very important to know the privileges that a policy allows so that you can choose the policy that best suits your specific requirements. As far as a commercial property is concerned, the best benefit that a business can get out of commercial property insurance is the recovery of those losses when the leased tenant leaves the rented commercial space without giving advance notice to the business owner and before expiration of the lease. In case the lessee is evacuated out of the commercial premises before the expiration of the lease, or if the lessee stops paying the rent, the insurance company steps in to cover the discrepancy.
It may also happen that the lessee may steal from or cause damage to the commercial property that has been leased. Legal expenditure incurred by the business can also be recovered through insurance plans. Thus, commercial property insurance plans cover losses that occur due to non-payment of rent, damages to property, rebuilding of commercial property, public liability, etc., and also due to other similar emergencies.
Though there are many types of insurance policies that are available in the market today, the business owner would benefit most by choosing to buy commercial property insurance. This is because damages of both temporary and permanent nature are covered by commercial property insurance plans. The disaster may be either man-made or natural and the loss is compensated for by the insurance provider after a fair assessment. Therefore, a commercial property insurance policy is best in that it can help a business recover from its financial losses.
A business owner who does not have the farsightedness of securing a commercial property insurance policy will find that he/she is in need of finances at a later date. This situation can be avoided if the business owner has the commercial property adequately covered by a comprehensive commercial property insurance policy.
Serene Chua : (+ 65)98-199-199
B.Sc(NUS)Hons / CEHA-Certified
Email : email@example.com