While the basic coverage offered by commercial property policies includes coverage for damage/loss to the structure and liability insurance, the following are a few of the common add-on’s (forms and endorsements) that may be available in a commercial property policy.
- Builder’s Risk – Specifically to cover new construction or additions, this is added to a policy for a minimum of one-year. A reporting or renovations form modifies the coverage amount according to the stage of the project.
- Improvements and Betterments – This covers all permanently installed improvements and betterments that will not be removed when a tenant vacates the building and is typically added by a lienholder.
- Legal Liability or Fire Legal Liability – In the event of negligent acts and/or omissions made by the business that results in a covered peril, this covers legal liability for accidental loss or damage to real and personal property of others. Typically for tenants in commercial buildings.
- Glass – Specified peril coverage for damage involving broken glass (as a result of vandalism) that results in damage or loss to other property.
- Peak Season – This is an endorsement that offers higher coverage during a specified period of time. For example, this might offer higher inventory coverage during a peak season when the business has a greater amount of inventory that usual.
- Inflation Guard – This will automatically adjust coverage amounts according to the rates of inflation.
These are just a few of the additional options available for business coverage. As each business is unique, so are their coverage needs when it comes to adequate and appropriate property insurance that will properly reduce risks specific to their unique situation. Contact an agent with questions related to the specific needs of your business!
