Learn more about Commercial Property Insurance in California
What is commercial real estate insurance?
Owning commercial real estate requires a significant financial investment, and it’s important for California businesses that own real estate to protect their investment. That’s where commercial real estate insurance can help.
Commercial real estate insurance provides customizable coverage for properties that businesses own. Policies may guard against diverse risks that could cause damage to a property.
Which businesses in California should purchase a business property insurance policy?
Business property insurance may help any California business holding property. If a property is ever damaged in a covered event, businesses will be glad for the coverage.
Policies are available for a wide range of properties, including retail stores, office buildings, restaurants, multi-unit residential, warehouses, factories, and most other buildings that businesses would own. In most situations, policies can also be purchased for undeveloped land and major equipment.
In addition to being broadly recommended, business property insurance is often required if a building is financed. It’s generally recommended irrespective of any requirement that stems from financing, however.
What protections do business property policies offer?
The coverages that business property policies have are often customizable, and therefore can vary. Depending on the policy, it may offer the following protections:
- Building Coverage: Might extend to the main structure on the insured property, and potentially other buildings on the site.
- Contents Coverage: Might extend to items stored at the insured location, such as equipment, supplies, product inventory, furnishings and electronics.
- Exterior Signs Coverage: Might extend to outdoor signage that’s not attached to the main building on the property. Depending on the policy, detached signs may fall under building coverage or separate exterior signs coverage.
- Tenant Improvements Coverage: Might extend to improvements made by tenants in their leased business space. This is also termed tenants betterment coverage.
When these coverages apply depends upon the policy at hand. Named perils policies normally protect against a specific list of risks. Open perils policies normally protect against risks so long as they’re not listed as exclusions. An open perils policy will usually provide broader protection.
Businesses should work with an insurance agent specializing in business property insurance, so they can choose the right coverages and type of policies.
Do business property policies guard against liability risks?
Although almost all businesses should have protection from liability risks they face, these protections are rarely included in business property policies.
Business property policies mainly protect tangible assets against damage and loss. Liability protections usually must be secured through liability-specific policies. The two policies may be bundled together in a single package policy.
Does business property insurance offer protection for digital assets?
As mentioned, business property policies primarily safeguard physical assets that a business owns. These policies typically don’t offer the same protections for digital assets.
For example, a business property policy would likely cover a business’s computers and servers against damage. Any programs on the computers or data on the servers would be unlikely to receive coverage, though.
If coverage is needed for digital assets, this is something a specialized insurance agent can likely help with.
Do business property policies cover equipment when it’s not at a business’s location?
Businesses that regularly take equipment off-site, such as to customer locations over worksites, should also make sure they have adequate coverage when equipment isn’t at the business’s actual location.
Coverage for when equipment is off-site frequently isn’t part of a business property policy. Instead, an insurance such as inland marine or builders risk is probably needed.
Can one business property policy cover multiple locations?
Businesses with multiple buildings at different locations usually can find coverage for their various locations through a single business property policy. These businesses should be sure to work with an insurance agent who knows business property policies well, however, as specific terms should be checked when insuring more than one building.
Where can businesses find commercial real estate insurance for California properties?
If your business has property in California that it needs to insure, contact the independent insurance agents at Nichols Insurance Agency. We’ll make sure you find commercial real estate insurance that’ll provide solid protection for your business’s property.
