The owner of a commercial building needs to insure his property. The specifics of the necessary insurance can vary according to the type of building. Hospitals, apartment buildings, department stores and office high rises all have different coverage requirements.
Named Peril
Some commercial insurance only covers structure; other insurance covers the inventory inside. More extensive policies cover for personal injury or death and injury within the premises.
A “named peril” policy covers only those risks named in the contract. It might cover only fire and theft but exclude all other risks.
All Risk Policy
An “all risk” policy, on the other hand, covers all hazards except those specifically excluded. When purchasing commercial insurance, it is important to understand what loss is covered.
Apartment Buildings
An apartment building needs coverage for the building’s structure, but the owner will want liability coverage for injury to tenants and their guests. The owner may be responsible for damage to an attached parking lot, as well.
Retail Premises
The owner of a strip mall needs to be concerned about more than simple building damage. There are the common areas to consider. What happens if a store sign falls on a customer? Who is responsible in the event of a fight between customers? Is special glass insurance necessary to cover damage to the windows of store fronts?
Hospitals
Hospitals have special insurance needs. In addition to damage to building and expensive equipment, any policy must provide for liability in the event of a malpractice suit or injury to a patient or visitor and accidents involving the hospital’s ambulances while off-premises.
Office Buildings
The owner of an office building has concerns that go beyond structural damage and general liability. He might consider accounts receivable insurance coverage, which provides coverage in the event records are destroyed and the company cannot collect on its bills. Crime insurance offers protection against loss from a burglary.
Vacant Property
While a vacant building does not appear to require more than basic coverage, the opposite is the case. Vacant buildings can become the site of criminal activity, and the owner is responsible for physical injuries sustained on the premises, including injuries to unauthorized intruders. Vacant buildings also represent a high fire risk. An average of 15,000 fires occur each year in vacant buildings.
Regardless of the type of building, adequate commercial insurance protection can help avoid financial disaster.
