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Commercial property insurance coverage is a necessity for any business owner. It covers most financial losses you may experience in the event the physical assets of your business – the building, equipment or outdoor fixtures -- are damaged.

Warren's commercial property insurance coverage can be customized to meet the needs of most businesses. It’s important to know what is and isn’t covered in a typical business property insurance policy if comparing policies.

An Overview

Business property insurance coverage can be defined in two ways: by what is insured, and the type events leading to the loss. Commercial property insurance coverage safeguards a company’s buildings, contents, equipment, and other real and personal property.

This includes:

• Inventory
• Improvements made to the property
• Furniture, equipment (owned or leased) and supplies
• Computers and data processing equipment
• Records, valuable papers and other documents
• Fences, signs, and other outdoor property not attached to a building

Typical coverage extends to losses resulting from events such as:

• Fire
• Lightning strike, hail, or windstorm
• Explosion
• Riot, strike or other civil commotion
• Damage caused by vehicles, vandalism and aircraft

Additional coverage, called endorsements, can fill in where basic property leaves off. These include coverage for:

• Floods, earthquakes and volcanoes
• Building collapse and glass breakage
• Business income
• Equipment breakdown

What isn't covered?

While most basic commercial property insurance coverage is fairly comprehensive, there are other insurable areas often not covered by this type of policy. Workers' compensation, health, life and disability insurance policies are written separately. Business automobile insurance covers company owned and non-owned vehicles, and employee vehicles used for business.

Some potential events or instances are not insurable by any policy. These include:

• Normal wear and tear, also known as depreciation
• Power failure (unless it causes damage to computers, a loss of digital data, or other
  damages to property)
• General failure of computer hardware or software
• Missing property in which there’s no evidence showing what happened to the property

Note: Home-based businesses are most likely not protected under your home owners insurance policy.

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