SWG PROPERTY: Insuring Commercial Property

July 21, 2021

Commercial properties offer business owners high visibility and easy access as two of their biggest advantages. Commercial properties, which tend to be spacious and conveniently located, allow retailers and other companies more freedom to design their facades and interior spaces than those within large buildings like shopping malls. These benefits come at the expense of increased security and safety measures, and present unique risks to property owners.

What is a Commercial Property?

A commercial property is generally any property that is not solely residential. As such, even a mixed-use property that is intended for residential and commercial purposes can still be considered commercial. It can include buildings ranging from a large shopping mall to a small standalone office. Even community buildings like churches or schools are considered commercial, though they are considered special-purpose buildings.

A free-standing commercial property is a commercial property that exists as a separate structure. This is unlike places found within other structures like a mall, shopping centre, or a medical office complex.

Liability Risks

A business must make sure the commercial property it operates from and everything inside are protected from loss.

Here are some common risks every commercial property needs to consider:

Business interruption: Loss of income due to being shut down temporarily, where the shutdown itself is a covered peril. This could happen for any number of reasons including repairs or rebuilding. This is critical coverage to ensure business continuity and making sure the business can continue to pay for expenses or payroll.

Loss from crime, theft or vandalism, or employee dishonesty

Repair or replacement costs for equipment, inventory, furniture, computers and other electronics, or other things on the property that have broken down or need replacement and are covered.

Loss from earthquakes, floods, or sewer backups

Loss from fire, explosions, burst pipes, storms

Nearby or adjacent hazards, such as a storage tank with flammable liquids.

SWG Property - Commercial Property

SWG PROPERTY – Commercial Property Liability is designed to cover hard-to-place property accounts. We can accommodate most realty-type risks, from stand-alone rentals and vacant dwellings, to large commercial risks, with an in-house capacity of up to $6,000,000.

Coverage highlights:

Broad Form or Named Perils

Replacement Cost

ACV

Dependent on individual risk, age, construction, occupancy and town grade

Other Coverages Include:

Business Interruption, Rental Income

Flood, Quake, Sewer Backup

Crime – including Employee Dishonesty & Broad Form Money & Securities

Mechanical Breakdown

Extension Packages:

Personal Property of Officers and Employees

Growing Plants, Trees, Shrubs or Flowers in the Open; Limited to $1,000 per plant

Accounts Receivable

Stock Spoilage

Building By-Laws

Inflation Protection

Exhibition Coverage

Automatic Fire Suppression System Recharge Expense

Brands and Labels

Fire Fighting Expenses

New Acquired Locations (30 Days)

Building

Equipment and Stock (Contents)

Debris Removal

Peak Season Increase

Contents Off Premises in the custody of Sales Representatives

Land and Water Pollution Clean Up Expense (Annual Aggregate)

Building Damage by Theft

Extra Expense

Valuable Papers

Off Premises Services Interruption

Electronic Data Processing Equipment and Media

Systems Breakdown Coverage

Fine Arts

Maximum value any one item; Any One Occurrence

Installation Floater

Professional Fees

Exterior Building Glass

Signs

Master Key

Liability:

Most realty type risks are written on a “Premises” type form but full CGLs including Tenant’s Legal Liability are available.

For more information, visit our product page: https://swgins.com/product/swg-property.html.

Content is current as of the date of broadcast and is subject to change without notice.