Businesses that own commercial buildings in Massachusetts have made significant investments in these assets, and both the investments and the assets should be protected if possible. Commercial property insurance helps businesses that own commercial buildings safeguard those buildings against a host of potential risks.
Commercial property insurance policies are special property policies that have been crafted to meet the insurance needs of businesses rather than individuals. Where there may be similarities between commercial and personal property policies, there also often are substantial differences.
The majority of Massachusetts businesses that own commercial buildings or land ought to insure these assets with business property insurance. Businesses may even be required by the terms of a loan to carry minimum levels of coverage in some cases, and those that aren’t required to carry coverage can still usually benefit from the protections that this insurance provides.
Nonprofit organizations that own buildings might also need or want business property insurance. Few businesses could afford to reconstruct a destroyed building with just their own resources, and many nonprofits are in even more limited financial positions.
Certain businesses that don’t own commercial buildings or land might still want business property insurance. In addition to covering buildings, this insurance sometimes also offers protection for equipment and inventory. Thus, businesses that have expensive equipment or lots of inventory may want to insure those items with a business property policy.
An insurance agent who specializes in these policies can help businesses in this situation determine whether a business property policy truly does make sense for them. Sometimes one does, while another form of insurance is more appropriate at other times.
Commercial property policies generally offer two main coverages:
Unlike many personal property policies, liability coverage is notably absent from most commercial property policies’ lists of protections. This is because businesses frequently have liability risks that are specific to their industry and work, so liability coverage is typically purchased via other policies that address specific liability-related concerns.
Commercial property policies are widely available through stand-alone policies, business owners policies and commercial package policies. The latter two are both types of package policies. Business owners policies tend to provide basic protections, and commercial package policies often afford more coverage choices.
Premiums for commercial property policies are based on multiple factors and frequently vary. How much insuring a particular building costs may depend on the following (and many other items):
The vast majority of commercial property policies can be classified as either closed perils policies or open perils ones. Closed perils policies usually only cover risks that are noted within their documentation, while open perils policies generally cover all perils that aren’t specifically mentioned as being excluded within their papers. Open perils policies tend to offer broader protections, but there can be exceptions to this guideline.
For help insuring a building or other property that’s located within Massachusetts, contact the independent insurance agents at Haberman Insurance Group. Our agents have helped many businesses find commercial property insurance for their buildings, land and equipment, and we’re ready to assist your organization.