You're a small business owner. How can you protect your company with the right insurance policy?

1 What is commercial real estate insurance?

Commercial real estate insurance is a type of property insurance that covers your building and its contents from damages caused by fire, theft, vandalism, natural disasters, and other perils. It also covers your liability for injuries or damages that occur on your premises or as a result of your business operations. Commercial real estate insurance can be customized to fit your specific needs and industry, depending on the size, location, and value of your property, as well as the nature and scope of your business activities.

2 Why do you need commercial real estate insurance?

Commercial real estate insurance is essential for any small business owner who wants to protect their investment and avoid costly lawsuits. Without adequate insurance, you could face financial ruin if your property is damaged or destroyed, or if someone sues you for negligence or wrongful acts. Commercial real estate insurance can help you recover from losses, pay for repairs or replacements, and cover legal fees and settlements. It can also help you comply with local laws and regulations, as well as contractual obligations with landlords, tenants, lenders, or partners.

3 How do you get commercial real estate insurance?

When seeking commercial real estate insurance, it's important to shop around and compare quotes from different providers. You can do this online, over the phone, or through an agent or broker. You'll need to provide information about your property and business, such as the address, square footage, construction type, occupancy, equipment, inventory, revenue, payroll, and claims history. Additionally, you must decide what kind of coverage you want and how much you can afford. Your options include the Basic form which covers the most common perils such as fire and lightning; the Broad form which covers everything in the basic form plus additional perils such as water damage; and the Special form which covers everything except what is specifically excluded such as war or nuclear hazard.

4 How much does commercial real estate insurance cost?

The cost of commercial real estate insurance depends on several factors, such as the coverage amount, the deductible, the coinsurance, the policy limits, the endorsements, and the discounts. The coverage amount is the maximum amount that the insurer will pay for a claim. The deductible is the amount that you have to pay out of pocket before the insurer pays the rest. The coinsurance is the percentage of the claim that you have to pay after the deductible. The policy limits are the maximum amount that the insurer will pay for each type of coverage. The endorsements are the additions or modifications to the policy that increase or decrease the coverage. The discounts are the reductions in the premium that you can get for having certain features or qualifications, such as a security system, a sprinkler system, a fire extinguisher, or a good credit score.

5 How can you save money on commercial real estate insurance?

If you're looking to save money on commercial real estate insurance, there are a few things you can do. Start by shopping around and comparing quotes from different providers. Consider opting for a higher deductible and lower coinsurance, but make sure you can afford them in the event of a claim. A basic or broad form policy should suffice unless your risks require a special form policy. You may also be able to bundle your commercial real estate insurance with other types of business insurance, such as general liability or workers' compensation. Don't forget to ask for any discounts you may qualify for, such as loyalty, multi-policy, or safety discounts. Lastly, review your policy regularly and update it if any changes occur in your property or business.

6 How can you get help with commercial real estate insurance?

If you have any questions or concerns about commercial real estate insurance, you can get help from a professional agent or broker who specializes in this field. They can help you assess your risks, find the best policy, negotiate the best price, and file and manage claims. They can also advise you on how to prevent or reduce losses, comply with laws and regulations, and handle disputes or lawsuits. To find a reputable agent or broker, you can ask for referrals from your peers, check online reviews, or contact your local chamber of commerce or trade association.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?