October 21, 2017

Commercial Insurance Claims

Commercial property insurance protects your business from a minor hiccup to a major financial loss.

Whether you own your building, lease your workspace or work at home, it’s important to protect your business’ physical assets. If disaster strikes your business, does your commercial property insurance have coverage for:

  • A fire that could destroy your building and the contents inside
  • A burst water pipe could damage your documents, drawings or other valuable papers
  • A storm could damage your outdoor sign

That’s why business property insurance is one of the most important investments ensuring the future of your business. You should obtain coverage if you have commercial or rental building property to protect:

•    Your building
•    Your outdoor sign
•    Your furniture and equipment
•    Your inventory
•    Your fence and landscaping
•    Others’ property

Basic property insurance usually covers losses caused by fires or explosions, theft, damage from vehicles or airplanes, or acts of vandalism. Additional coverage can be added for earthquakes and breakage of glass.

The essential items to insure in a business property insurance plan include your building, office equipment, inventory and outdoor items on the premises.

A typical ingress/egress provision will provide coverage for economic losses sustained when access to your property is impaired.  Under most policies, the insured property does not need to sustain direct physical loss or damage for the insured to recover income losses which were the proximate result of inaccessibility during a disaster such as a hurricane.

Commercial property insurance plans pay for losses based on the replacement cost of the item, or its actual cash value.  After a disaster when recovery efforts take place, commercial public adjusters will look for structural or physical loss at a property and consider important commercial coverages, such as service interruption and ingress/egress that are often triggered without requiring “direct physical loss or damage” at the insured property.

Replacement cost refers to the amount necessary to repair, replace or rebuild property on the same premises, with comparable materials and quality without deducting any amount for depreciation. Actual cash value is the cost to replace it with new property of similar style and quality, less depreciation.

Research conducted by the Gartner Group found that approximately 40% of companies that experience a disaster will be out of business within five years.

With these dire predictions, business should spare no expense in having a business continuity plan and risk planning strategies to soften the blow of a catastrophic loss, pending the outcome of any insurance claims.

American Property Loss Services understands how important getting your business back up and running is to you.  Our goal is to maximize your settlement as quickly and efficiently as possible.

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