 Your commercial property is one of the most important aspects of your business. Whether it’s a restaurant, a warehouse, a grocery store or something else, it’s crucial to keep the property clean and safe. Commercial property insurance can help protect the business’ physical property from damage caused by fire, hail, smoke, lightning, theft, vandalism and more. Despite its value, however, commercial property insurance is not legally required by the state of Texas. It may be required by a mortgage lender, though. Despite the fact that it’s not legally required, commercial property insurance is crucial for any business.
What Does Commercial Property Insurance Cover?
Commercial property insurance provides compensation if your business’ property is lost or damaged due to a range of covered incidents. It also covers income lost while the business is unable to operate because of a disaster. Commercial property insurance does not cover flooding or earthquakes, though these can often be added as separate policies. Some policies also come with temporary location, which helps with the cost of moving operations to a separate location while the original property is being rebuilt or repaired.
You can also combine property insurance with liability into one policy called a business owners’ policy, also known as a BOP. This policy saves money on important insurances necessary for small businesses. Larger businesses should consider a commercial package policy, which covers the same dangers and allows more room for additional coverage.
How Much is Commercial Property Insurance in Texas?
The cost of your commercial property insurance depends on a few factors, including the size of the business. Depending on the size of the business, you could pay anywhere between $500 to $500,000 a year. On average, however, businesses pay between $1,000 and $3,000 a year for commercial property insurance for a $1 million policy. Other factors that may influence the cost of your commercial property insurance includes you and your company’s:
- Credit
- Location
- Coverage amount
- Claims history
- Value of the building and its contents (including equipment)
- Size of the building
Texas does require business owners to carry other insurance for businesses. The state requires businesses that own or use vehicles for work to carry certain amounts of , which provides coverage for work vehicles in case of an accident. Be sure to check with your state’s requirements, as insurance requirements, including the amount of insurance required, varies depending on the location.
Posted Wednesday, February 26 2020 1:37 PM
Tags : commercial property insurance
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