How Much Does A Commercial Property Policy Cost?
For business owners or those who own and lease out commercial property, ensuring that you have the proper commercial property policy is critical. Should something happen beyond your control, having a commercial property policy will make sure your business is protected. However, many business owners might be wary of investing in such insurance coverage for fear of how much a commercial property policy will cost them. As with most types of insurance policies, this type of coverage will provide you with peace of mind and a security net.
First things first, a commercial property policy will provide coverage for the building that houses a business, as well as all related equipment and inventory inside the location, regardless of whether the property is owned or leased by the business owner. These insurance policies will cover the replacement costs for the building and everything in it, should there be fire, vandalism, and other acts out of the owner’s control, subject to the exact terms of the policy.
The main areas of loss that are typically covered by commercial property policies are the building itself, both the body of the building and the associated components, such as electrical and HVAC systems, the building contents, other people’s property that might be housed within the building, and exterior signs/marquees.
What are the Costs?
As with any insurance, the exact cost of coverage will vary based on several factors. The insurance company you choose, the total amount of coverage required, the deductible elected, the building location, the type of business, and more will all have immense impacts on the final premium costs you pay on your commercial property coverage.
On average, across the United States, a commercial property policy will run business owners between $500 and $1,000 each year for small businesses, with rates extending into the range of hundreds of thousands of dollars for larger corporations. On average, the policy will be in the $700 to $800 range, with a good rule of thumb being that policies will run $1,000 to $3,000 per every million dollars of commercial property policy coverage you want. Policies also typically require a certain deductible to be paid by the policy owner in the event of a claim, usually in the $500 to $1,000 range.
Schechner Lifson Corporation can offer you help in weighing the costs and benefits of commercial property policies. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.