If you are interested in running a business in Florida, you may be wondering what types of insurance you will need if you plan on having physical premises to carry out your business. In this article, we’ll have a closer look at commercial property insurance in Florida, commercial property insurance cost, and what commercial property insurance coverage you can expect if you do purchase insurance. Keep reading to learn more!
What is Commercial Property Insurance?
No matter what area of business you may be interested in launching a new company in, it will likely benefit you to have commercial property insurance. In essence, commercial property insurance in Florida protects your business from such issues as theft, fire, or natural disaster. Whether you’re starting a new business in retail, manufacturing, or non-for-profit, commercial property insurance is typically bundled in with the other insurances necessary for you to operate your business.
Understanding Commercial Property Insurance Coverage
Like many forms of insurance, commercial property insurance coverage is affected by a variety of different factors. For example, manufacturers or railroad business tend to pay more for their insurance as their businesses use very expensive and sophisticated machinery which would usually cost a lot to replace. However, even if you do pay high commercial property insurance premiums, business can usually deduct the cost of their insurance premiums as expenses. Be aware though that commercial property insurance does not typically cover losses arising from tenants using the building.
Commercial Property Insurance Cost
As stated above, commercial property insurance coverage and commercial property insurance cost are usually linked to four key factors of your business’ building
- Occupancy – A building’s use can affect its fire rating. For example, an office building will usually rate better (safer) than a restaurant or auto repair shop as there is less likely to be an accident caused by fire. Even if you are a service provider, but your business is in a building with high-risk occupants, your premiums are likely to be higher because of that increased risk.
- Construction – The more fire-resistant the building you are in is, the lower your premiums are likely to be. You could even earn a discount for your commercial property insurance cost if your building is made of fire-resistant materials. Be aware that additions to the existing structure of the building could also affect its fire rating, so be sure to discuss with your insurance agent before remodeling. Internal structure also affects your building’s fire rating.
- Location – If your building is in a city or town with excellent fire protection services, you can expect your premium to be less than a building outside a city or in an area with limited fire protection.
- Fire and theft protection – Does your business have a security system or sprinkler system? How far is the nearest fire hydrant to your business? Things like this will affect your commercial property insurance cost.
If you’re interested in learning more about the type of commercial property insurance that is right for you, it’s best to speak to the professionals. At Dunham Insurance, no matter what type of insurance coverage you need, we take the extra time to ensure that you completely understand your coverage and that it fits your needs perfectly. Get in touch today to discuss your specific insurance needs.