80% of Commercial Properties ‘Undervalued’
A common mistake many business owners make is scrimping on commercial property insurance – a fact made clear by recent research from the RICS Building Cost Information Service. Its figures showed that 80 per cent of commercial properties are underinsured. This is an alarmingly high number and a fact that could threaten business owners’ futures.
Some common commercial property policies are liability insurance, property insurance and workers’ compensation insurance. Liability insurance protects you from damages that your company inflicts on any third parties. It covers the cost of personal injury or property damage lawsuits and injuries customers incur at your place of business.
Property insurance covers damages to property within your place of business, such as fire or flood damage.
Workers’ compensation insurance protects you in case employees are injured on the job. It also prevents employees from filing negligence lawsuits against you for any injuries they sustain during work.
There are additional forms of coverage under each of these broad categories that can protect you from business-specific liability.
Given the current state of the economy, it is easy to see why business owners may be tempted to opt for a cheaper insurance deal, but by doing this they are forgetting the bigger picture when it comes to long-term safety.
When purchasing commercial contents insurance it is essential that you accurately assess the value of your property, if you fail to do this or opt for a policy that does not provide an appropriate level of cover you could face big costs in the future.
If a disaster happens to a commercial property, what are the consequences? A business owner must be prepared for all eventualities and even though property prices have decreased in many areas, still building material costs and many supplies remain at a premium price. Replacing these in the event of fire, flooding or theft can break the back of even the most solid of businesses.
It’s best to work with an insurance agent who has extensive experience in commercial coverage such as LittleNLarge.com. The agent will discuss specific losses that are common within your trade and present a proposal for coverage options based on your business.
Make sure to ask questions about anything that you are uncertain about including terms and conditions.
A good agent will have its finger on the pulse when it comes to managing commercial property insurance. They will regularly review what is happening in the insurance market to keep standards as high as possible when protecting your property.