Commercial Property Insurance

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Commercial Property Insurance

From startups to family-run farms and large manufacturing plants, businesses are the foundation of our economy. As a business owner, you work hard every day to keep your business running and your employees and customers happy. 

But one calamity can change everything in an instant. It can mean loss of income for you and your employees as well as lost customers while you rebuild. That's why commercial property insurance is so important.

Commercial property insurance, also known as business property insurance, ensures the future of your company after a misfortune. That could mean repairing your building or replacing inventory, equipment, or other business personal property. 

At Keller-Brown, we are often asked questions such as: What can you tell me about commercial insurance in PA? What do I need to know about MD commercial insurance? And do I need commercial property insurance in Maryland? 

What is commercial property insurance?

Commercial property insurance is a type of policy that pays to repair or replace your business's physical assets. In the event of a loss, a business property insurance policy covers items that belong to the business. 

The types of damages that are covered by a commercial property insurance policy include: 

• Broken windows 

• Electrical fires 

• Burst pipes  

Working collaboratively with your agent to establish the right amount of commercial property insurance coverage is a smart business move. That's because having adequate insurance helps ensure your entity has the funds to make necessary repairs after damage or disaster.

Who should purchase commercial property insurance?

When you're in business, you want to stay protected, even when the unexpected happens. Commercial property insurance protects inventory, furnishings, equipment, and buildings, no matter the size of your business. 

Even if you are a home-based business, it's likely you have computers, electronics, tools, and inventory essential to running your business. You don't want to take a financial hit if something happens to your equipment. Not to mention, your customers would be disappointed if you didn't have the finances to repurchase the lost items quickly. 

Businesses of all sizes can use business property insurance, including: 

• Sole proprietorships

• Limited liability companies 

• Partnerships 

• Corporations 

At Keller-Brown, we insure businesses of all types and sizes throughout Pennsylvania and Maryland with commercial property insurance.

Most common commercial property insurance claims

As a business owner, you are probably more focused on growing your business than worrying about what can go wrong. Forty percent of small businesses are likely to experience a property or general liability claim within 10 years of opening. 

The most common commercial property insurance claims are: 

• Burglary and theft

• Water and freezing damage 

• Wind and hail damage

• Fire

• Equipment malfunction

It's also important to understand what commercial property insurance does not cover. Typical exclusions include: 

• Floods 

• Earthquakes

• Employee dishonesty 

• Normal wear and tear 

Here's something more to be aware of: commercial property insurance covers property at your primary business location. When you take the business property off-site, it is not covered. These coverage gaps can negatively impact your business. Our insurance agents will take an inventory of your commercial property insurance needs to talk about the coverage that's right for you.

What does commercial property insurance cost in PA and MD?

Whether you are looking for Maryland or Pennsylvania commercial property insurance, the cost is based on a number of considerations including the type of coverage and the amount of coverage. That means the policy cost to provide coverage for a $50,000 building will be less than a $5 million building. 

Types of buildings covered include:

• Medical offices

• Professional office buildings

• Retail shopping centers 

• Industrial buildings

• Mixed-use buildings

It's important to note that newer buildings constructed with materials meant to prevent or minimize loss receive preferred rates.

Your industry will also affect the cost of commercial property insurance in Pennsylvania and Maryland. Businesses with the lowest premiums include business offices that provide a service such as: 

• Financial advisor

• Small retail businesses

• Home-based business selling products or services online

Buildings in poor repair, structures that haven't been maintained, and older buildings that haven't been renovated to modern safety and construction standards often receive higher rates, or are even uninsurable.

Additional considerations are:

• The location of your business 

• Property limits

• Contents limits

• Age of building

• Type of construction

• Safety features like sprinklers, central fire, and burglar alarms

• Year of most recent upgrades to the plumbing, wiring, heating, and roof

• Endorsements

• Type of business inside the building (for example, a restaurant will receive different rates than an auto repair garage or office building)

• Deductibles 

• Claims history

At Keller-Brown Insurance Services, we will customize your commercial property insurance policy to fit your needs. Because we are an independent insurance agency, we can help you find business property insurance coverage that works with your budget. 

Your commercial property insurance coverage doesn't just protect your building. Coverage also includes inventory and supplies, equipment and machinery, office furniture, computers, monitors, and printers. 

You can even include fixtures such as carpeting and lighting. Signs, storage sheds, outbuildings, and fences can also be protected. Perhaps you rent the building where you do business. It is likely that as the lessee you are still responsible for insuring the building. 

If you exercise the business interruption option, commercial property insurance can also replace lost income and pay suppliers. Just as property insurance protects your balance sheet, business income protects your income statement. Many of our Pennsylvania and Maryland clients chose this option because it provides coverage for revenues lost due to business closure because of a claim..  

For example, if you have a fire, property insurance will pay to replace what you lost. But your doors can be closed for months while repairs are made. How will you pay your employees, the mortgage, utilities, and all those other expenses that continue when your business is shut down? That's what business income insurance is for. It also provides expenses for operating from a temporary location. 

There are two ways you can insure your commercial property: replacement cost or actual cash value. Replacement cost (RC) is the cost to replace, repair or rebuild your property. For example, if your cash register is ruined in a fire and you opted for replacement cost, you could replace that cash register with a new or comparable model. 

Actual cash value (ACV) means you will receive the cash value of the cash register at the time it was ruined. Because most items depreciate with age, the older they are, the less they are worth.

Replacement cost (RC) is the cost to replace, repair or rebuild property. While this option will cost more, there is no additional out-of-pocket expense on your part after the deductible.

The amount of your deductible also affects the cost. The more you are willing to pay before the insurance kicks in, the lower your insurance cost.

Some perils such as earthquakes and floods are not usually covered by commercial property insurance. However, these coverages can be added to the policy by endorsement after speaking with your agent. 

Take the guesswork out of insuring your business property

Figuring out the right amount of coverage for your business can be confusing. Being over-insured means your premiums will be needlessly high. But being under-insured can leave your business and employees at risk. 

Keller-Brown Insurance Services represents several, top-rated commercial property insurance companies. We can review a number of options for your Pennsylvania or Maryland business with different coverage options, limits, and deductibles. 

Contact one of our commercial property agents today and start protecting your business with confidence. Depending on the nature of your business, we may ask you to describe your business, property, location, and more. We will ask you to describe your business, property, and provide your location. Then we will explain the levels of protection available and provide a customizable quote.

Once you've chosen your commercial property insurance policy, we like to review it with you once a year. We will discuss your business's growth, equipment, and other factors that determine your coverage needs. 

Do you have questions about Commercial Property Insurance?

Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about Commercial Property Insurance or for a free review and insurance quote for Commercial Property Insurance. And don't forget, as an independent insurance agency, we represent several top rated insurance companies. We have the flexibility to help you find coverage at competitive premiums for business, home, auto, and more.