What protection does commercial building insurance provide to the business owner?


As part of the commercial property coverage, commercial building insurance is designed to provide protection to the business owner against any physical damage to the commercial buildings or business property.

In the insurance world commercial building insurance is commonly known as "building and personal property coverage form".

Property Covered under Commercial Building Insurance

Every policyholder can include one or more properties in their commercial property insurance policy. There are three types of property that the named insured can select and add to the insuring declarations, depending on the business owner's specific insurance needs:

  • Building - this refers to the buildings specified in the policy's declarations and all finished adjacent structures, indoor and outdoor fixtures, equipment and machinery on the premises.
  • Business Personal Property of the insured business owner inside the insured building, on its premises or in close proximity to the premises. Commercial building insurance covers all kinds of personal property used for the purposes of the business, such as fixtures, computers, furniture, different appliances and machinery, etc. In addition, any improvements made to the building or part of the building, are also covered under commercial building insurance.
  • Personal Property Belonging to Others, which the insured is in control or care of, is also covered.
  • A number of extra coverages are also included in a commercial building insurance policy. Examples of situations covered under commercial building insurance, include removal of debris expenses, the cost of restoring electronic data, removal of pollutants expenses, property preservation and increased construction costs.

The commercial building insurance coverage can be extended to include other property provided that the policy declarations include a coinsurance provision of at least 80 percent. The following types of property extensions can be additionally applied:

  • Outdoor property;
  • Property located off the main premises;
  • Property that has been constructed or acquired after the policy has come into effect;
  • Recovering of valuable records and data, etc.
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