Get your commercial property insured

Get your commercial property insuredImage Credit: Supplied

One of the most important aspects when considering setting up any business is to have a reliable insurance coverage for all the immovable properties and the personnel associated with it.

Commercial property insurance protects business interests and safeguards the business from operational losses caused by unexpected and unavoidable mishaps. Whether it is a small retail outlet, a professional company, a hotel, a shopping mall or a manufacturing unit, it is advisable for businesses to have proper insurance coverage.

The main categories of items that are normally covered under commercial property insurance include machinery, warehouses/buildings, fixtures, fittings and furniture, electronic equipment, rent and profit.

The type of insurance coverage depends on the type of business and what is required to be covered under the insurance. Insurance companies decide the premium to be paid by business owners depending on business needs.

Insurance coverage comes in different types. One is the actual cost coverage which considers the depreciation charges, i.e. the value of the property item is determined by considering its age and usage. With the replacement cost coverage, the client gets the original amount of the property and does not take into account its appreciation or depreciation. Loss of profit insurance, also termed consequential insurance, is provided for businesses that suffer loss due to damage of property. The insurance company is liable to support such companies by paying the insured amount, which is actually the insured gross profit.

Insurance companies provide various options to customers based on their needs, necessities and the risks involved which include theft, natural calamities, and others. Other factors deciding premium amount are tenure for insurance coverage and payment mode.

Handy Hints
• Insurance firms offer various options based on requirements
• Insurance coverage depends on the type of business and needs
• Conduct due diligence when choosing an insurance company

Click on Insure your home for more property guides

Source: Mrudvi Bakshi, Special to Properties
The writer is a freelancer

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