Commercial Property
Building
If you own a commercial building, replacement cost coverage is needed. Although companies have general guidelines to value building replacement costs, they are general. Robinson-Maurer-Welts recommends that you secure an appraisal from a third party or discuss your building particulars with a qualified contractor to accurately determine the current replacement cost of the building.
Earthquake & Flood
Did you know that Earthquake is NOT a covered peril on a standard commercial property policy? Your building may be your largest asset. Can you afford to count on FEMA? Some people believe that, after earthquakes, the government will step in with aid so that they will not lose financially. That is not generally true.
The government MAY provide disaster aid, but it does not protect the individual property owner from loss. The most common Federal aid after a disaster is a low-interest loan, but you still need to pay the loan back. Flooding is also excluded from most commercial property policies. A separate policy must be purchased to protect you from damage due to flood.
Business Personal Property
This provides coverage for your business personal property at a specified location and covers furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location.
If you have equipment that is frequently taken off site to various locations, it is important that you have an inland marine policy (equipment or installation floater) to cover this property.
Business Income (Business Interruption Coverage)
This coverage reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises is being restored because of physical damage from a covered event, such as a fire.
Business income insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, civil authorities’ coverage may start after a waiting period and last for two or more weeks. It is strongly recommended that all businesses acquire this coverage.
EDP
Electronic Data Processing coverage is separate property coverage specifically designed to protect your computer hardware related equipment. The software coverage needs to be included separately in most cases. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and, in some cases, virus attacks.