Florida is great for entrepreneurs looking to launch their own business due to the good weather and outdoor activities. With its many tourist attractions and beaches, businesses frequently move to Florida to take advantage of the lucrative opportunities. However, there are some risks to opening a business in Florida due to its risks of hurricanes and other extreme weather. If you’re interested in opening up a business in Florida, it’s essential to understand what is commercial property insurance and what commercial property insurance covers. Keep reading to learn everything you need to know about commercial property insurance in Florida.
What is Commercial Property Insurance?
It is a policy that covers your business and protects it from any losses regarding the structure, contents, and other assets that your company owns. If any unexpected event happens that damages your business’ property, buildings, or its contents, commercial property insurance covers these losses.
What Does Commercial Property Insurance Cover?
While it’s possible to purchase commercial property insurance in Florida individually, it is common for businesses to bundle it together with other necessary coverages. The two main types of bundles are:
- Commercial Package Policy (CPP): Bigger companies purchase CPP insurance. CPP insurance is more flexible and covers the same property and liability insurances as BOP. You can also add other coverages like personal liability, employment practices liability, and more.
- Business Owners Policy (BOP): This type of insurance covers small businesses better than larger ones as it packages property and liability insurance into one policy. It includes contents coverage, property insurance, general liability and business interruption insurance.
If your business transports produce, items, or equipment, you may want to consider investing in inland marine insurance. This policy will provide compensation if possessions or equipment are damaged during transport. If you think your business may also face lawsuits, you may want to add an umbrella insurance policy for when your business’s liability insurance reaches its maximum.
How much does it cost?
Many factors come into play when working out Florida’s commercial property insurance cost. Besides the location of your business, the following factors are important when determining how much you have to pay:
- Claims history
- Industry
- Age of the company
- Coverage limits and types
- Vehicle types and weight (for commercial auto insurance)
Typically, a BOP insurance policy plan costs around $1,200 a year. As a CPP insurance policy bundle can be much more flexible, it’s tough to give a figure on how much you can expect to pay. It’s best to speak to an experienced insurance services provider who can discuss what coverage your business needs.
If you’re interested in creating a bespoke commercial property insurance bundle for your business, it’s best to speak to professionals. At Dunham Insurance, no matter what type of insurance coverage you need, we take the extra time to make sure that you completely understand your coverage and that it fits your needs perfectly. As an independent insurance agency, we can provide our customers with bespoke packages. Our objective is to reduce our clients’ insurance costs by providing quality business, home, auto/marine, commercial and personal umbrella policies. Get in touch today to discuss your specific needs.