What does commercial property insurance policy cover?

10/6/2022 (Permalink)

If you own a business in Kansas City, MO, you want to protect the assets that make it successful.

What is covered by a commercial property insurance policy?

If you own a business in Kansas City, MO, you want to protect the assets that make it successful. Whether you're in retail or manufacturing, a commercial property insurance policy can provide coverage for buildings and other physical assets. In this article, we'll explore what types of coverage are offered under these policies and what exclusions might apply.

Commercial property insurance policies are designed to cover the physical assets of a business.

Commercial property insurance policies are designed to cover the physical assets of a business. A commercial property insurance policy is a binding contract between you and your insurer, which outlines the terms and conditions of their coverage. The main purpose of commercial property insurance is to protect businesses from any damage or loss that might occur as a result of an accident, fire or theft. This type of coverage will typically not cover losses due to theft, vandalism, or malicious acts against your business by third parties like employees or customers.

Typically, this includes buildings, inventory, equipment, and furniture.

Typically, this includes buildings, inventory, equipment, and furniture. In addition to the standard property coverage that most commercial insurance policies offer, many insurers also offer endorsements to their policies that will insure specific items like jewelry or fine art. Most commercial property insurance policies do not provide coverage for these types of assets.

A few examples of what isn't covered by a typical CGL policy include:

• Household goodwill (i.e., customer relationships)
• Intangible assets such as patents and trademarks
• All other types of personal property owned by the business

Exclusions can vary by policy

Exclusions can vary by policy, but common exclusions include flood damage, earthquakes, and wear-and-tear. Flood coverage is not the same for all policies. Some policies may cover flood damage to your property if it's caused by fire or explosion. Other policies won't provide coverage for flooding, even if it's caused by fire or explosion.

You can find out more about the specific exclusions that apply to your policy in your insurance contract, which should be included with your policy documents when you buy commercial property insurance.

The best way to know what your commercial property insurance policy covers is to read the fine print. It can be difficult to understand all the details of your policy, if you have any questions, you should speak to your insurance agent.