Commercial property insurance is a wide category that comprises many types of coverage. This article provides an overview of the coverages available to businesses who seeks to find out what type of commercial insurance they may include. This also serves as a buyer’s guide for commercial insurance leads.
Commercial Property Policy
The property coverage most frequently purchased by businesses is the commercial property policy. It shelters the types of property many businesses own. Examples are buildings, production machinery, office equipment, furniture, and stock. A property policy is flexible and can be modified to meet the needs of your business. Coverages you need that aren’t automatically included in the policy can be added via endorsements.
Commercial property and BOP policies cover property situated at the premises described in the declarations. They afford little coverage for property located away from those premises. However, many businesses own equipment that they use at an off-site location.
Inland Marine Insurance
Inland marine insurance is designed to cover portable property. It is a broad category that includes many different coverages. Inland marine differs from ocean marine insurance, which covers ships and cargo traveling on the high seas. Inland marine insurance generally covers property transported over land. Because inland marine policies cover movable property, they are often referred to as floaters.
Builders Risk Insurance
As its name suggests, a builder’s risk policy covers a building in the course of construction. The policy begins when construction starts and ends when the project is finished. The policy is usually purchased by the general contractor or project owner. It shelters all parties involved in a project against property losses. These include the owner, the general contractor and all subcontractors.
Theft is a covered danger under commercial property and BOP policies. However, these policies exclude some types of property, such as money and securities, which are highly vulnerable to theft. Moreover, property policies do not cover theft committed by employees. To protect themselves against property losses that result from acts committed by criminals, businesses may purchase crime insurance.
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