Commercial Insurance Is Not a One-Size-Fits-All Product

1/10/2019 (Permalink)

Contact your insurance agent in Scottsdale, AZ to see if you are covered

Commercial Insurance Is Not a One-Size-Fits-All Product

The worst time to discover that a business in Scottsdale,AZ, has inadequate property insurance is after a fire. The person responsible for purchasing insurance coverage can expect difficult questions from the partners or directors.

A commercial policy includes coverage for multiple types of property. It describes covered items and specifies the maximum amount the insurer will pay. These coverages include:

• Building
  
• Factory equipment
  
• Inventory
  
• Office equipment
  
• Furnishings
  
• Business interruption
  
• Lost revenue
  
• Business relocation
  
• Theft
  

Determine the Types and Amounts of Coverage Needed
It’s never a bad idea to revisit a commercial insurance policy. Circumstances change, and insurance coverage should change with them. Company executives and the insurance agent should meet and discuss the current coverage. Some areas may require adjustment and a revised quote. Comparison shopping between insurance companies might also be in order at this time.

The Premium Amount Is More Than the Business Can Afford
A significant number of factors go into the determination of an insurance premium. Reduce the risk associated with these factors, and the savings could be substantial. These factors include:

• Tenancy: Buildings with welding or other shops are a higher fire risk than office spaces.
  
• Structure: Wooden structures incur more fire damage than those constructed of fireproof materials.
  
• Location: Fires in buildings close to fire stations receive better fire response than remote areas.
  
• Sprinklers: Buildings with sprinklers experience less fire damage than those without them.
  

If the premium still seems too high, review the types and limits of coverage. Perhaps they can be cut back. However, being underinsured can significantly delay recovery after a fire. It can also leave the business with financial hardship.

Commercial Insurance Is There When You Need It
When a business is fully insured, recovery after a fire is a straightforward process. After contacting the insurer, a local team of fire restoration specialists will speed the recovery.