Commercial property insurance is a must for your business. It is important to protect your property, equipment and supplies from potential hazards and loss. Most commercial property insurers also will help your company put loss-prevention guidelines in place. Requirements for commercial property insurance coverage vary by business and state. So knowing the commercial property insurance basics can make sure your business has the protection it needs.

Commercial property insurance protects your business assets, and in some cases personal and other property, from workplace loss. The commercial property insurance rate as well as policy terms will vary depending on the location of your business and many other variables, such as the amount of real estate and tangible property involved. To get a good grasp on commercial property insurance basics, take the following steps:

1. Gather information from commercial property insurers.

2. Consider your basic business property insurance situation.

3. Get commercial property insurance quotes.

Action Steps
The best contacts and resources to help you get it done

Collect basic commercial property insurance information

Most major insurance companies offer commercial property insurance. In addition, some companies specialize in business property insurance. Visit the websites of several commercial property insurance providers or order information to review the basic insurance information.

I recommend: As an introduction, review the commercial property and casualty insurance information at the iBank website. Together with the online information from AIG, it provides a quick summary of commercial property insurance basics.

Determine your commercial property insurance needs

Your commercial property includes buildings; equipment and machinery, including vehicles, computers and office equipment; supplies and real estate. Also factor in the physical settings of your property: is it prone to natural 'disasters' such as flooding or windstorms? Depending on the type of business, there could be many other circumstances to consider as you estimate your business property insurance needs.

I recommend: Use the categories identified by Nationwide Insurance to begin your analysis of your business's property insurance needs. Add what you've learned about business property insurance to the information offered by Insurance Services Group. Note that they represent several insurers.

Compare commercial property insurance rates

nsurance rates for commercial property will vary based on several factors. They might differ from company to company as well as for the coverages selected and other policy terms. As you review and compare commercial property insurance quotes, be sure you are comparing apples to apples with quotes for equal coverages from all insurers.

I recommend: Use USInsuranceOnline.com to collect several commercial property insurance quotes to compare. Be sure to signify "small business" and "commercial property" in your request for accuracy. In addition to a quote of rates from Liberty Mutual, read the recommendations about loss prevention and preparedness.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To fully protect your business, add commercial liability coverage to your commercial property insurance. Many insurers will combine them into a business insurance package.

If you have business property, commercial property insurance coverage is a necessity. You must protect your business and the items you need to run your business, as well as protect yourself against customers and employees who may get hurt while on the premises.

One sure-fire way to put your business in jeopardy is to ignore the importance of carrying insurance, or by not carrying enough commercial property insurance coverage in the event something beyond your control happens.

Three reasons why you must secure property insurance are:

1. If a fire destroys your inventory or a burglar steals your valuable assets, insurance would help you stay on your feet.
2. A customer or employee could injure themselves at your business and sue you for damages.
3. A natural disaster, such as an earthquake, tornado or flood could destroy your business. Business property insurance will help you rebuild.
   

Action Steps
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Cover your assets with business property insurance

When getting commercial property insurance quotes, make a checklist of everything that needs to be covered. Consider your buildings or any other structures, such as storage buildings, fences or signs. Include machinery, computers, equipment or automobiles, inventory and supplies.

I recommend: Get a business insurance checklist at 2insure4less to make sure you cover all of your assets. Commercial property insurers Farmers Insurance Group offers commercial property insurance information geared to specific businesses such as restaurants.

Keep costs low when getting commercial property insurance quotes

Before getting quotes from commercial property insurers, make simple changes that will help your rates go down. Consider installing an alarm system, fire extinguishers and smoke and fire detectors. Also, for a lower rate, consider packaging your personal and business insurance with the same company.

I recommend: Download the Five Steps to Risk Assessment so you can deal with health and safety risks in your business--and lower your insurance rates for commercial property.

Compare commercial property insurance rates

You want to keep your premiums low, but at the same time you don't want to be underinsured. The best way to compare commercial property insurance rates is to set the policies side-by-side and do an actual comparison. Several websites allow you to do just that. Remember, just because a rate is lower, doesn't mean you'll be getting the same coverage as one that is a little higher.

I recommend: Get multiple insurance quotes at Insure Zone and 2Insure4Less. Get customized quotes for your commercial property insurance at BuyerZone and NetQuote.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Compare apples to apples when getting your insurance quotes. Make sure that when you compare commercial property insurance rates, you are getting quotes on the same amount of coverage in each category.

Demonstrate your expertise and competence in providing commercial property insurance quotes and insurance rates for commercial property by participating in professional education courses and training. These additional qualifications will assure your clients that you can accurately compare commercial property insurance rates and strategically advise for the welfare of their personal and business interests.

There are a number of online and regional educational courses specializing in commercial property insurance, so make sure you find the appropriate program that meets your needs. Consider the following regarding commercial property insurance education and training:

1. Find commercial property insurance training courses online or in your geographic location to ensure you are up-to-date regarding commercial property insurance information.

2. Continue your professional education by enrolling in a program that specializes in commercial property insurance.

3. Enroll in online or specialized courses for commercial property insurance providers.

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Enroll in commercial property insurance coverage courses and training

Whether you are a commercial property insurer who is just starting out or an agent who has been in the business for awhile, taking educational courses will be beneficial. You can earn additional certifications or partake in professional development programs to remain on the forefront of the commercial property industry. There are a number of educational associations that provide online information and registration to make the process easier for you.

I recommend: Take a look at the Insurance Educational Association, which offers insurance agent training through semester courses, including commercial training. Visit the Agent Broker Training Center and select state-specific certification and professional development courses in the topic areas of Associate in Commercial Underwriting, Commercial Lines Coverage Specialist or Commercial Property/Casualty.

Enlist in a continuing education program specializing in insurance for commercial property

Add to your resume as a commercial property insurance provider by continuing your education with a specialized course or courses. With the wider knowledge base you will receive from additional schooling you will be able to ensure clients that you have the skills necessary to further their personal and business interests as well as provide an accurate commercial property insurance quote. Browse through web listings of classes to find the right program or course for you.

I recommend: Visit the Agency Management Resource Group, select the commercial listings, click "Go" and peruse the offered courses to find one that meets your needs. Scroll through the Continuing Education Group web page to find the INS 23 Commercial Insurance course and sign up if interested.

Participate in online or specialized courses for commercial property insurers

Further your commercial property insurance competence and expertise by enrolling in online and specialty programs. Upon completion you will demonstrate to clients your knowledge of business property insurance and commercial property insurance rates. Many of these programs allow for the ordering and registration process to be completed online.

I recommend: Order the 14-module commercial property insurance course provided by the American Institute for CPCU and Insurance Institute of America. Visit the National Alliance for Insurance Education and Research to enroll in their Commercial Property Institute and earn the Certified Insurance Counselor designation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  While some clients may only be interested in obtaining a commercial property insurance rate, many will seek a more specialized and customized experience. For those clients your educational background will prove beneficial and demonstrate your capability as an insurance provider. Drawing on your additional education and training will not only please your current clientele but ensure their future business and generate new leads.

If you own commercial property, it's a good idea to insure it. Whether your commercial property is a building, machinery, vehicles or appliances, a solid insurance policy will protect you against devastating losses if the property is damaged or stolen.

Shopping for the right policy can be a confusing and frustrating task. It's important to learn the commonly used commercial property insurance key terms in order to purchase the best policy for your business.

Action Steps
The best contacts and resources to help you get it done

Admitted and non-admitted insurance companies

When shopping for commercial insurance, you will encounter the terms 'admitted companies' and 'non-admitted companies.' Admitted companies are regulated by the state insurance board. Non-admitted companies are not licensed by the state and may be able to offer certain lines of coverage that aren't provided by admitted companies. Insurance providers that operate on a national scale can be categorized as non-admitted even though they may have several admitted branches in various states.

I recommend: Robert E. Underdown, AIC, ARM explains the differences between admitted and non-admitted insurance companies. To learn more about the pros and cons of both admitted and non-admitted companies, visit the Hoffman Brown Company.

Basic named perils

Business owners have the option of purchasing coverage only for specific damages. The covered damages outlined in the insurance contract are known as basic named perils, and may include fire, explosion, vandalism and hail. Because the coverage is limited to specific events, the insurance premium may be lower than a broad coverage policy.

I recommend: See how a basic named peril insurance policy stacks up against other policies at the Maine Bureau of Insurance.

Combined single limit

When purchasing commercial property insurance, you will be required to select insurance limits. For example, if a customer is injured on the property, the insurance company will make a bodily injury payment. If a customer damages the building, the insurance company will make a property damage payment. If you do not want to set limitations on the specific types of payments, you can purchase a policy with a combined single limit, which will allocate payments however necessary until a total amount is reached.

I recommend: For a detailed explanation of combined single limits, visit Progressive Commercial.

Off-premises coverage

Off-premises coverage provides protection for commercial property that isn't stored at the place of business. Off-premises coverage may also cover company vehicles and deposits that are en route to the bank.

I recommend: Read about the different forms of off-premises coverage at Insurance Services Group.

Declaration page

A declaration page, often referred to as a dec page, outlines the important details of the insurance contract between the provider and the customer. A copy of the declaration page is often considered acceptable proof of insurance.

I recommend: Read about what is included in a typical commercial vehicle declaration page at the Falls Insurance Center. The Bridle Trails Insurance Agency offers additional information about declaration pages.

Cancellation

The cancellation of an insurance policy can fall under the category of flat, pro rata or short rate. With a flat cancellation, the insurance provider returns the full premium to the customer. Pro rata cancellations result in a partial return of the premium, and short-rate cancellation requires the customer to pay an early-termination fee.

I recommend: The International Risk Management Institute offers detailed definitions of the various types of insurance cancellations.