Florida business owners need to carry several types of business insurance to protect themselves against various incidents that could threaten their companies. Commercial property insurance, in particular, offers valuable coverage that protects your company’s physical assets against damage from fires, natural disasters, vandalism, theft, and other hazards.
Here’s everything you need to know about commercial property insurance in Florida, including what it covers, how much it costs, and who needs it.
What Is Commercial Property Insurance?
Commercial property insurance, also called business property insurance, helps protect your physical business assets against unexpected incidents like windstorms, fires, vandalism, theft, and burst pipes. Physical assets can include the office space that you own or rent, furniture, fixtures, office supplies, inventory, and other assets that you depend on during your daily operations.
This coverage helps businesses recover quickly from unexpected losses and avoid significant financial damages if their property is damaged or destroyed by a covered peril.
What Does Commercial Property Insurance Cover?
Commercial property insurance typically covers your office building, its contents, and property located just outside the building against perils ranging from vandalism and theft to fires and windstorms. Items that are often covered by business property insurance include:
- Office furniture
- Computers
- Inventory
- Supplies
- Documents
- Landscaping
- Fences
- Exterior signs
- Other people’s property
Coverage may vary depending on your specific policy, so review your coverage to understand better what is and is not covered.
What Does Commercial Property Insurance Not Cover?
Most commercial property insurance policies include a few basic exclusions that business owners should be aware of:
- Earthquakes
- Floods
- Normal wear and tear
Florida business owners, in particular, should consider purchasing flood insurance to supplement their commercial property insurance—as a standard business property insurance policy would not cover the flooding caused by natural disasters like hurricanes.
How Much Does Commercial Property Insurance Cost?
Commercial property insurance costs depend primarily on the total value of your business assets, including your commercial building. However, other factors can impact your expenses as well, including:
- Location: Florida business owners are likely to pay more for commercial property insurance due to the increased risk of hurricanes and other hazards.
- Industry: Certain types of businesses, like construction businesses or restaurants, generally carry more risk than an accounting agency.
- Building construction: Modern constructions that include fireproof materials, new plumbing and HVAC, and new electrical wiring often cost less to insure than buildings with old or outdated features.
Small businesses can often save money on commercial property insurance by purchasing a Business Owners Policy (BOP), which bundles business property insurance with general liability insurance.
Who Needs Commercial Property Insurance?
Nearly all businesses need commercial property insurance to protect their assets against damage. For example, companies in Florida depend on commercial property insurance to protect them and their assets against hurricanes and windstorms that could otherwise threaten their ability to continue conducting business.
Business property insurance is essential for companies that carry large inventories or own buildings and expensive equipment for continued daily operation. While certain businesses have more risk than others, all businesses can benefit from the added protection offered by commercial property insurance.
Tips to Consider When Buying Commercial Property Insurance in Florida
When shopping for commercial property insurance in Florida, there are a few essential tips for business owners to keep in mind:
- Make sure you have adequate coverage. Replacement cost coverage is recommended to ensure your property is fully covered. Business owners should also update their inventory to ensure its accuracy and let their insurance agents know if inventory changes during the year.
- Keep receipts and other vital documents in a separate location. If you need to file a claim, it’s important to have receipts and other documents as evidence of the value of your assets. If these documents are kept in your office building, they could be destroyed, making it more difficult to file a claim.
- Review and compare policies carefully. Insurance policies and coverages vary between carriers, so review and compare policies carefully to ensure your coverage meets your needs.
Levay Mack Insurance Group Has You Covered
At Levay Mack Insurance Group, our primary goal is to share our insurance knowledge so that you know what protection you are buying with your hard-earned money. With over 45 years of experience and as one of the largest independent insurance agencies in South Florida, we are proud to offer access to the top-rated carriers in the insurance industry.
From Palm Beach, St Lucie County, to Brevard County, Levay Mack has Florida covered! To learn more about our commercial property insurance policy options, contact us today for a free quote! Thanks for visiting our blog, and we hope to help you soon!