Commercial properties like business, ranches and farms are the primary insurance targets of the Commercial property insurance. Commercial property insurance provides complete insurance coverage from any damage to their property and contents to the owners who have such kind properties.
The business operators or the people who lease their property to other entity are included in the commercial property owner. These property owners purchase the policies of Commercial property insurance to get the monetary benefits in case of damage to their commercial building and additional structure. The commercial property insurance offers the protection to the property owners of a house or a building. Insurance policy of the commercial property insurance also protects the content of building, like furniture, machinery, and displayed merchandise or stored.
Types of Insurance Policies Offered by the Commercial Property Insurance
There are various types of insurance policies that are offered by the commercial property insurance. These policies of various types cover different types of risk causes of damage and loss. Natural disaster is also included in the risk factors or causes covered by the policies of commercial property insurance.
Generally, the policies of commercial property insurance have three categories. The basic form policy is the first category in commercial property insurance. Basic form policies of commercial property insurance covers the common risks occurred by civil commotion, aircraft, vehicles, windstorm, lightning, and fire.
The broad form policy is a second category of the commercial property insurance. This second kind of policy of commercial property insurance offers the insurance coverage on basic risks, for instance sprinkler leakage, sleet or ice, weight of snow, glass breakage, collapse, and water damage.
The last policy type of commercial property insurance is a special form. This third policy type of commercial property insurance protects the owners of business from all risk factors, except those factors which are particularly excluded from the policy contract. These special form policies of commercial property insurance cover the risk factors due to vermin, insects, wear and tear, nuclear disaster, war, earth movement, and flood.
For other additional coverage for extra expense and the business interruption, commercial property insurance offers liability policies. The extra expense includes the payment made to resume the business operation due to possible damage or loss of the building. The liability policies of commercial property insurance give protection to the owner against the expenditure of a court case and the possible judgment. The commercial property insurance can compensate for the business interruption. If a person has liability policy of the commercial property insurance, than he or she may get the reimbursement against loss of income due to the building damages.
The policies of commercial property insurance provide the liable coverage for flood. However, the policy holders of commercial property owner receive the compensation from the Federal Government, National Flood Insurance Program. Crime or glass damage is the risk causes that are not included in the policies of commercial property insurance for claim. For such cases, business owners generally choose other insurance companies with more specialized insurance policy.
More companies are focusing to standardize the policies of commercial property insurance for providing insurance coverage to certain areas. These certain areas are not covered in the traditional type of commercial property insurance.