Commercial Property Insurance in Vermont
What is Commercial Property Insurance?
Many Vermont businesses own land and buildings, and they’ve made substantial investments in these properties. Those investments ought to be protected from potential risks, which is what commercial property insurance helps businesses do.
Commercial property insurance is a specialized form of property insurance that’s intended for properties owned by businesses rather than those that individuals own. Whereas there are points of commonality between commercial property and personal property policies, there also are places where the two forms of property insurance diverge.
What Businesses in Vermont Should Consider Business Property Insurance?
Most businesses that own land or buildings in Vermont should consider purchasing business property insurance, for few businesses could afford to rebuild or replace their property if it was destroyed in a disaster.
Moreover, many businesses that have financed their property purchases may be required by the terms of their loan to carry minimum levels of coverage until the loan is paid off. Lenders frequently include such requirements in their loans to make sure their interest in properties is protected against common potential disasters.
Do Businesses That Lease Space Need Business Property Insurance?
Businesses that lease commercial or industrial spaces generally aren’t required to insure the buildings they’re in, since those buildings are owned by another company. These businesses might still want business property insurance, though.
In addition to covering buildings and land, some business property policies also cover equipment, supplies and inventory. These are the protections that can be beneficial to businesses which lease the space they use.
Do Home-Based Businesses Need Business Property Insurance?
Home-based businesses might also want coverage for equipment, supplies and inventory if a lot has been invested in these assets. Whether a separate business property policy is needed to insure these items depends on their value and what -- if any -- protections are afforded a business by the owner’s homeowners insurance policy.
Many homeowners insurance policies don’t cover business-owned assets, but some do provide limited protection for equipment, inventory and supplies used by a home-based business. An insurance agent who specializes in business property policies can help owners of home businesses review their situation and homeowners policy to determine whether a business property policy is needed.
What Coverages Are Available Through Business Property Policies?
Business property policies commonly make two main coverages available:
- Building Coverage, which usually covers an insured building and secondary structures
- Contents Coverage, which usually covers equipment, inventory and supplies
Business owners who are familiar with homeowners insurance policies will notice that liability protection is missing from the two main coverages. Whereas homeowners and other personal property policies often come with at least some liability coverage, this protection is frequently omitted from business property policies. Instead, the liability protections that a business needs are typically obtained through liability-specific policies.
Do Business Property Policies Cover Earthquakes and Floods?
Business property policies generally exclude earthquake and flood damage from their covered perils. Businesses that need or want either of these protections should talk with an agent about getting a separate earthquake policy and/or flood policy to complement their main business property policy.
Are Business Property Policies Available Through Package Policies?
Business property policies are widely available both as stand-alone policies and through package policies. The coverage is often included in business owners policies, which combine several protections suitable for most small businesses, and it normally can also be included in more robust commercial package policies.
How Can Vermont Businesses Get Commercial Property Insurance?
For help insuring property that your Vermont business owns, contact the independent insurance agents at T.S. Peck Insurance. Our agents have helped many businesses secure commercial property insurance for their assets, and we have the expertise and independence necessary to help you find a great policy.
