Commercial property insurance provides coverage for various events that can have a significant impact on your business. Let's explore some of the key areas that this insurance can protect you from:
Extreme weather damage
Commercial property insurance safeguards your building in case of storm, lightning, or fire damage. It typically covers the cost of building replacement, offering protection against bushfires (depending on the location and policy terms).
Floods and water damage
Coverage for floods caused by seawater or freshwater may vary depending on the location of your commercial building. Policies may have exclusions for natural flood damage, especially in flood-prone areas near major river systems. It's essential to review your policy to understand the extent of coverage for water-related risks.
Sudden power outages can have severe consequences for businesses, resulting in income loss and potential spoilage of perishable goods. It's crucial to ensure that your policy covers the loss of income and stock during extended power outages. Be aware of exclusions related to user error, such as leaving freezer doors open or accidental unplugging.
Escape of liquids
This coverage applies to incidents like burst water pipes, malfunctioning dishwashers, or leaking appliances that cause property damage. However, you may need to demonstrate that you have properly maintained the affected pipes or appliances to qualify for coverage.
Theft and theft damage
Commercial property insurance not only covers theft but also the damage caused by thieves during break-ins, such as broken locks, doors, or damaged roofs. Keep in mind that not all policies include coverage for window or glass breakage. If protecting your glass shopfront is crucial, carefully compare insurance policies to ensure glass damage coverage is included.
Vandalism and malicious damage
Coverage extends to intentional damage and vandalism, including the costs associated with graffiti removal. Review the policy exclusions to ensure coverage for events that could pose significant harm to your commercial business as a tenant or landlord.
Commercial property insurance also provides coverage for impact damage. This includes incidents like cars colliding with your shopfront or trees falling onto your building, resulting in roof damage. The coverage often extends to adjacent buildings damaged by impact, leading to business closure for safety or assessment purposes.
By understanding the coverage offered by commercial property insurance, you can proactively protect your business from potential risks and ensure business continuity in the face of unforeseen events.