Commercial Property Insurance

Commercial Property Insurance for Terre Haute and Wabash Valley Businesses

Commercial property insurance is designed to help protect those assets when they are damaged or lost because of a covered event.

Crapo Insurance Agency works with businesses in Terre Haute and throughout the Wabash Valley to help identify the property they need to protect and compare available commercial insurance options.

What Can Commercial Property Insurance Protect?

Commercial property insurance can cover different types of business property depending upon the policy and coverage selected.

The U.S. Small Business Administration describes commercial property insurance as protection for company property against covered losses such as fire, smoke, wind, hail, vandalism, and similar events. Exact protection depends on the individual policy.

Start by Identifying What Your Business Owns

One of the first steps in reviewing commercial property insurance is understanding what your business would have to replace after a serious loss.

Consider property such as:

• buildings
• office furniture
• computers and electronics
• machinery
• tools and equipment
• inventory
• raw materials
• finished products
• fixtures
• signage
• supplies
• tenant improvements

The value of business property can increase gradually, making it easy for an insurance limit established several years ago to become outdated.

An accurate inventory of important business property can help when determining appropriate insurance limits and can also be valuable if a claim occurs.

The Building and the Contents Are Different Exposures

A company may need to insure both the physical building and the property inside it.

A business that owns its building may need protection for the structure as well as equipment, inventory, and other contents.

A tenant may not be responsible for insuring the entire building but can still have substantial financial exposure involving:

• business contents
• equipment
• inventory
• furniture
• fixtures
• improvements made to leased space

The lease agreement can also affect what a tenant is responsible for insuring.

Understanding those responsibilities before arranging coverage can help reduce the possibility of discovering a gap after a loss.

Covered Causes of Loss Matter

Commercial property insurance does not protect against every possible type of damage.

Policies differ in the causes of loss they cover, their exclusions, deductibles, limitations, and optional endorsements.

When comparing policies, businesses should consider not only the premium but also what events the policy is designed to cover.

Broader protection can affect premium, and the actual coverage is determined by the policy contract.

Our role is to help you understand those differences rather than simply compare prices.

Replacement Cost and Property Values

The amount shown on an insurance policy should reflect the property the business actually needs to protect.

For a building, that may involve the cost of repairing or reconstructing the property rather than simply its real-estate market value.

For equipment, furniture, inventory, and other contents, businesses should consider what it would cost to replace important property after a serious covered loss.

Insurance policies can use different methods for valuing damaged property, so it is important to understand how a particular policy will determine the amount payable after a covered loss.

Business Income Can Be Just as Important as the Building

Physical damage can cause more than repair costs.

A fire, storm, or other covered property loss can temporarily prevent a company from operating even while many of its ongoing expenses continue.

Business income or business interruption coverage can help address certain financial losses when business operations are suspended because of covered physical property damage.

Depending upon the policy, this type of protection may help with lost income and certain continuing expenses while damaged property is being repaired or replaced.

Because the terms, waiting periods, limits, and covered causes of loss can vary, business-income protection should be reviewed as part of the overall property-insurance discussion.

Extra Expense Coverage

Some businesses cannot simply remain closed while repairs are completed.

Depending upon the policy, extra-expense coverage can help with certain additional costs incurred to continue operating after a covered property loss.

For example, a business may need temporary space, rented equipment, or other temporary arrangements.

The importance of this protection depends heavily on the type of operation and how quickly the company must resume serving its customers.

Commercial Property and Flood Insurance

A particularly important distinction is flood coverage.

Standard commercial property insurance does not typically cover damage caused by flooding. Flood protection generally requires separate coverage.

The National Flood Insurance Program offers commercial flood insurance for eligible business buildings and business contents. Building and contents coverage are separate, and the specific policy determines what is and is not insured.

Crapo Insurance can assist businesses with flood insurance through the National Flood Insurance Program.

For a business with property that could be affected by flooding, flood exposure should therefore be evaluated separately rather than assumed to be part of the standard commercial property policy.

Equipment and Property Away From Your Location

Not all business property stays inside the building.

Contractors, service companies, installers, and other businesses may regularly move tools, equipment, materials, or customer property between locations.

Standard commercial property coverage may not provide the protection needed for property while it is in transit or away from the insured premises.

Depending upon the business, commercial inland marine coverage or another specialized policy may be appropriate for movable property or equipment.

This is an area where accurately describing how the business uses its property is particularly important.

Commercial Property and General Liability Serve Different Purposes

Commercial property insurance and general liability insurance are related, but they protect against different types of risk.

Many businesses need both.

For eligible businesses, property and liability protection may sometimes be combined in a Business Owner's Policy (BOP) or another commercial package.

Coverage After a Previous Property Claim

A recent insurance claim does not necessarily mean a business should stop looking for coverage.

Crapo Insurance works with commercial property customers who have had recent claims.

Eligibility, pricing, deductibles, and available coverage will depend upon the circumstances and the insurance company, but an independent agency can help review available options.

When Should You Review Commercial Property Coverage?

A commercial property policy should change as the business changes.

A review may be appropriate when you:

• purchase or renovate a building
• move to a new location
• expand existing space
• purchase significant equipment
• increase inventory
• add a warehouse or storage location
• make substantial leasehold improvements
• change the way the premises are used
• add new business operations
• experience significant increases in construction or replacement costs

Build Coverage Around the Actual Business

A retail store, professional office, contractor, warehouse operation, service company, and manufacturer can all have very different property exposures.

A meaningful commercial property review should therefore consider:

• what property you own
• whether you own or lease the building
• the value of equipment and inventory
• where property is located
• whether equipment travels between locations
• how quickly operations must resume after a loss
• the risks associated with your particular operation
• contractual or lender insurance requirements

The objective is not simply to purchase a commercial property policy. It is to build coverage around the property and operations the business actually depends upon.

Flexible Payment Options

Crapo Insurance currently offers several payment arrangements depending upon the insurer and policy, including:

• Monthly
• Quarterly
• Semi-annual
• Annual

Available payment methods may include debit card, credit card, electronic check, or check by phone, depending upon the insurance company and policy.

Talk With a Local Independent Agent

If you own or operate a business in Terre Haute or the surrounding Wabash Valley, Crapo Insurance Agency can help you review the property your business depends upon and compare available commercial insurance options.