As you might expect from the title, the building coverage will protect your interest in the building whether as the owner or tenant. If your business owns the building, you’ll be interested in making sure the building will be replaced if something happens due to a covered loss such as the building burning down. In the same way, the tenant is typically responsible for covering what’s inside the walls which may be reconstruction of walls, flooring, paint, etc. The tenant’s responsibilities are usually detailed in the lease agreement with the landlord and may require that the landlord be added as an additional insured on the policy.
Business Personal Property
Business personal property refers to the items that the business owns such as computers, furniture, equipment, fixtures, and inventory. Most policies have a limited coverage for items that are taken off the premises, so it’s important to look critically at your specific situation. If you have property that you need to be insured for a specific replacement amount or will be taken out of the office frequently, you may need to consider an inland marine policy that covers those specific pieces of property. An example of this may be an expensive piece of equipment that is critical to your business such as carpet cleaning or roofing equipment.
When your business encounters a fire or another covered loss that keeps you from doing business, it’s important to know that expenses can still be paid while everything is being fixed. Business income, also known as business interruption, coverage will reimburse the business owner for lost profits and fixed expenses during the time that the business is closed due to one of these covered losses. We would recommend that you strongly consider this for your Phoenix business insurance policy as it is designed to keep your business in the same financial position it would have been if no loss had occurred.
How You’re Covered
An insurance policy is only good for you if it covers what you need to be covered when a loss occurs. This may be the number one complaint that consumers and businesses have about their insurance industry experiences which makes working with an experienced insurance broker all the more important. Commercial property policies in Phoenix, AZ are either all risk policies that cover a wide variety of losses except for those specified in the policy or they are peril specific policies that cover losses only when they are listed in the policy. Examples of perils that may be covered are fire, hail, wind, theft, and vandalism. Also, be sure to find out if your property will be covered as replacement cost in the policy or if it will be Actual Cash Value. If it is Actual Cash Value (ACV), then the amount provided for that property will be the replacement cost minus any depreciation due to age or condition.
As you can see, commercial property insurance comes with a lot of options to consider. If your business needs this type of coverage, the experienced Phoenix insurance brokers at Smart Move Insurance are ready to get to know your business and help you make the decisions that are right for you. Start the conversation today by calling us directly.