How Does Commercial Insurance Work?

3/22/2019 (Permalink)

Your insurance policy will cover certain perils, which are causes of damage such as fire or theft. Coverages included in your policy are called inclusions, whereas perils not covered in your policy are called exclusions. It’s important to know what is covered in your policy and what is not covered.

Here are some of the primary items covered in a commercial property insurance policy due to loss from a covered peril:

• The building, owned or leased
• Business equipment loss
• Damage or loss due to wind, hail, fire or theft
• Accidental damage of property
• Business Interruption (lost business income)
• Electronic data
• Interruption of computer operations
• Valuable papers and records
• Forgery or alteration
• Accounts receivable

Of the covered items in a commercial property insurance policy, the most important items to cover are the building and the business’ assets contained within it. Business interruption, which covers a loss of income when your business is forced to suspend operations due to a covered event, is also necessary coverage in the property insurance policy.

For more information, reach out to your local insurance provider.