Organizations and businesses purchase commercial insurance in the same way that individuals or families purchase homeowners insurance. The difference between commercial and personal insurance is basic to property-casualty insurers. Commercial property insurance policies are specifically for protecting commercial buildings and the contents within those buildings against damage or loss from windstorm, fire, and many more causes of loss or hazards.
Determining Rates for Commercial Insurance
Commercial property insurance rates are determined using several considerations:
- The Insurance's Limit: The cap of insurance relevant to the coverage.
- Coverage Causes of Loss: The hazards covered are indicated by the selected covered causes of loss. These can span from very basic to vast.
- Choosing Coinsurance Percentage Rates: An 80 percent coinsurance rate is typical for many policies. If a higher amount is chosen, the premium will be lower. If a lower amount is selected, the rate becomes higher.
Considerations for Commercial Insurance
- Ensure your business has proper coverage! When you file a claim from a replacement cost policy, you could be penalized if you don't have the proper amount of insurance. Keep inventory accurate and up-to-date. Notify your insurance agent when/if there are any fluctuations.
- Take time to examine your policy carefully. Read exclusions, because policies cannot cover everything. Look to see what types of limitations there are on your property. Discuss additional coverage with your agent, as needed.
- Always maintain a copy of your most important documents in a different place. No one expects a disaster like a fire, flood, or tornado. But these events can happen. If your documents were destroyed, you would have a copy of your most critical documents in a safe place. This may include receipts that you might need to use in a claim with your insurance company.
Don't feel overwhelmed by commercial insurance. It’s easy to find the best coverage for your business and your budget by comparing quotes with South Lake Insurance Inc. within minutes online.