There are a lot of costs that go into owning a business. You have to buy or rent a property, hire employees, get office supplies together and so on and so forth. Sometimes, it feels like one thing after another as far as expenses go. However, you don’t want to lose everything you’ve built because you didn’t go so far as to think about business property insurance. Sure, there are costs that go into any insurance you buy, but this coverage can help you with a myriad of things that could happen to your business. What are the rates like? Well, that depends.
The location of your business will play a part in the cost of the insurance as well. If the local crime rates are low, you will get a better premium cost than you would if they were high.
Safety And Security
Geography is one thing, but there are other things that secure a building. If your property has good locks, security systems, a security guard and other such elements, you will get a better rate than a building that does not. If there are hazardous materials nearby, on the other hand, you might have a higher rate.
Property Size And Age
Larger buildings are going to cost more than small office units. If you have several large apartment complexes, that’s going to cost more than one small warehouse. The age of the premises is also a factor. Older buildings are more susceptible to certain damages, so they cost more to insure than buildings that are new and have met current codes.
Go Over Your Risks
If you are searching for commercial property insurance, keep in mind that the more risks you have for something happening, the higher the price will be on the insurance you want. There may be some updates and upgrades you can make to your building or buildings before you get insurance so you can get a lower price. You can also go back to your policy holder later for breaks in the premium when you can prove those updates have been made.
Combating Rising Rates
It might seem hard to get the insurance you need due to rising rates. Below are ways to reduce your commercial property premiums:
- Consider raising deductible. Most policies are usually issued with a $1,000 deductible. If you can afford to raise deductible to $5,000, you will see a savings in your premium.
- Improve the security/safety of your property. Insurance companies will offer discounts if your property is equipped with hard wire smoke detectors, fire & burglar alarms and/or a sprinkler system.
Business Property Insurance
If you’re ready to move forward with business property insurance, make sure you are comparing apples to apples. Not every policy will have the same inclusions and exclusions so you should compare policies to ensure you get the right coverage for your business. If you have questions about business property insurance or would like a free consultation, contact Nickerson Insurance Services for help.