Essential Insurance Coverages for Commercial Building Owners

As a commercial building owner, your properties can provide dependable and lucrative sources of income. However, owning, maintaining and renting a commercial property requires diligent planning and risk assessment. Without implementing appropriate risk management and loss control practices, your properties could quickly become a financial liability, and you may face significant losses. Fortunately, you can establish a financial safety net with insurance.

What Types of Insurance Do Owners Need?

Many types of insurance can address commercial property owners’ coverage needs. Although every property and building owner may have unique characteristics that shape exact insurance needs, the following insurance products are often advisable investments:

• Commercial property insurance—This is a versatile and common policy that may offer financial protection for structures and their contents, including furniture, electronics and electric and plumbing systems. Fires, burglary, vandalism and some types of severe weather are typically included as covered perils.

• Commercial landlord insurance—This insurance product may bundle several types of financial protection for building owners. These policies typically entail many property-related features as commercial property insurance but can also cover liabilities, such as if a tenant is injured or experiences property damage for which you’re at fault. Additionally, your coverage may compensate you for lost income if a property cannot be rented due to a covered incident.

• Workers’ compensation insurance—Commercial buildings often require staff to operate and maintain. For example, you may employ security guards, janitors or other maintenance employees. In such situations, workers’ compensation insurance may be required by law. Even if not formally mandated, this coverage should be a top priority, as it can financially protect you from lawsuits and ensure employees who are injured or become ill on the job can receive the care and assistance needed to recover.

• Commercial auto insurance—If you use motor vehicles to help maintain or operate your buildings, commercial auto insurance is likely required. The right policy can ensure you recoup losses from accidents or other incidents involving maintenance vans or other automobiles.

• Commercial umbrella insurance—As a building owner, you may be held liable for the losses of your tenants should you be at fault for an incident. Fires started by faulty wiring or water damage due to burst pipes can be considered your responsibility, and financial consequences could exceed the limits of other policies. Fortunately, umbrella coverage can provide additional aid in these situations.

Learn More

Contact Action Insurance Company to get a free quote and ensure you have the right coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.