As an experienced insurance professional, Tyler Burlage understands the importance of imparting the differences between insurance types to his clients. Though property insurance and commercial property insurance may seem like similar products, there are important nuances that clients should understand before purchasing.
What Is Commercial Property Insurance?
You may be familiar with home insurance, which covers your residence in the event of an emergency. Tyler Burlage frequently explains to clients that commercial property insurance is similar — but it’s exclusively for real estate properties used for business purposes. It protects your physical structure as well as your assets.
The monthly fee for commercial property insurance depends upon various factors such as your industry and the city your business is located in. With this in mind, smaller, local businesses typically don’t pay as much as larger, national businesses.
What’s Unique About Commercial Property Insurance?
Tyler Lee Burlage speaks to many people who wonder what the difference is between commercial property insurance and other types of insurance. This is a great question! While commercial property insurance is obviously different from home insurance (for a single-family home), the line between commercial and simple property insurance isn’t so clear. Commercial property insurance takes into account the following points:
- Value of your business assets: A business that sells electronics may pay a higher monthly or yearly fee than a business that sells handmade goods.
- Your business’s location: Your location matters when it comes to insurance. For example, is your building located in a disaster-prone zone (such as tornadoes in the midwest, wildfires in the west, or hurricanes near the coastline)? If it is, you’ll be paying more to ensure your products.
- Whether your building is crowded: If you’re running a restaurant, you likely have dozens to hundreds of patrons walk through your doors every day. A small office building would host fewer people. Because crowds increase the likelihood of an accident, you would probably have a higher premium for the restaurant.
Why Commercial Property Insurance is Crucial for Small Businesses
If there’s one thing Tyler Burlage wants to convey to potential clients, it’s that commercial property insurance is always worth the cost. This insurance, especially when bundled with other types of coverage you may need, protects your livelihood. It can also help safeguard against theft, natural disasters, and accidents on your property.
If you are still in the planning stages with your business, do your due diligence to scout out the ideal property that complies with the local fire code, is not located in a high-risk location for natural disasters (though sometimes this is unavoidable), and is in a generally safe area for workers. After you’ve found the perfect property, be sure to speak to a commercial property insurance professional for an accurate quote!