It is a very need for every business to get commercial property insurance – whether you are the owner of the building or the property is at a lease. It will help to protect your commercial building, its contents, and the exterior fixtures, like an outdoor sign or any hurdles. A commercial property insurance Ontario will facilitate to protect the physical assets of your business from any kind of explosions, fire, storms, burst piper, theft and vandalism. Though floods and earthquakes aren’t covered by any property insurance policy unless those perils are specifically included in the policy.
What Are Covered Under Commercial Property Insurance Policy?
A commercial property insurance will most importantly cover your commercial space or building, whether it is rented, leased, or owned. The policy will surely cover everything present in it and its exterior, including-
Furniture and Equipment
Important Data or Files
Exterior Signs or Banners
Fence and Landscaping
However, the factors it will cover will totally count on the type of insurance policy you have chosen as per your business needs.
What is the Cost of Commercial Property Insurance in Ontario?
The value of your business assets will determine how much you need to pay as premiums to cover your commercial property, including the building and liquid assets. Other factors that will ascertain your premium cost will be based on the risk, which is as follow-
- Location: The insurer will check if the area is highly prone to natural disasters or storms, accordingly will decide the premium cost.
- Occupancy: The type of business will influence the premium cost of a commercial property insurance policy. In case your business has high-foot traffic or many headcounts, you need to pay high-premium, as more occupancy involves higher risks.
- Construction: It will evaluate if your commercial building is made with fireproof materials or not and also its existing condition. If your office building is equipped with fire-retardant materials and updated HVAC systems, the cost of your insurance premiums will be low.
- Risk: The policy provider will consider the overall risk for the business type and building ahead of issuing any premium cost. All variables are determined before any policy deed is provided.
- Protection: Things like sprinkler and alarms systems will help to lessen the insurance premiums. It is added benefits to have fire-hydrant featured in your commercial space.
What Are Different Types of Coverage?
A commercial property insurance Ontario will cover everything related to the commercial space intended for the business. The elements, building, fencing, certain landscaping, and more are covered under this deed. In general, there are three types of commercial property insurance coverage, which are-
1. Basic Form Policy: This policy will cover standard natural disasters, smoke, fires, theft, and vandalism, which is enough for small to medium-size businesses.
2. Special Form Policy: This policy will cover everything that isn’t certainly excluded from the deed.
3. Broad Form Policy: This policy will cover everything that basic form policy delivers along with protection from falling objects, water damages, snow or ice weight, and collapsing structures as well.
What Are Not Covered Under Commercial Property Insurance Policy?
This type of insurance is extensive in nature but are limited in coverage. The standard policy will not cover personal assets, commercial vehicles, employee salaries, and the following-
- Certain Fire Damages
- Certain Smokes
- Other Natural Calamities or Act of God
In short, commercial property insurance policy is important for any business with high-valued physical assets. In case you want to include some of the exclusions in your policy, you can do it by paying a higher premium. Hence, circumstantially go through the policy wordings, if needed, avail added covers to remain certain that your business might not suffer a great loss during emergencies.