COMMERCIAL PROPERTY INSURANCE

 

Liberty Mutual Insurance is an award-winning, reputable provider of commercial property insurance in Europe, Asia, Middle East and Africa and across Canada. We specialize in putting together customized insurance plans for businesses and professionals from all kinds of industries. Commercial property insurance is just one of our many diverse insurance products we offer – we’ve got you covered for all your insurance needs!

 

Commercial property insurance is a must-have for any business that has an office, workspace, storage space, or brick-and-mortar store that they rely on. Such business premises are valuable assets because of the following uses:

 

Storing valuable equipment and documents needed for day-to-day operations

Storing physical products that the business sells or materials that the business uses

Receiving customers or meeting with clients

Considering all the above functions, any untoward incident concerning commercial property can lead to either: (1) direct financial loss in case equipment, documents, products, or materials are damaged and/or (2) business interruption in the case that the store, office, or workplace becomes inaccessible to employees and customers.

 

This is where commercial property insurance comes into play.

 

Looking up at towering commercial property buildings

 

WHAT IS COMMERCIAL PROPERTY INSURANCE?

Commercial property insurance provides financial coverage for any damages or losses to the workplace, office, storage space, or store that a business uses. This insurance also covers all the valuable assets inside that could be stolen or damaged in connection with an untoward external incident. Such incidents include:

 

Vandalism

Robbery

Fire

Natural calamities, such as hurricanes, earthquakes, or floods.

Signing up for commercial property insurance in Europe, Asia, Middle East and Africa is highly recommended for a variety of companies and entrepreneurs seeking to protect their significant financial investments that were dedicated to purchasing or leasing properties and machinery crucial to operating their businesses.

 

Whether you are a multimillion dollar corporation, a tech startup, or a small restaurant owner, investing in commercial property insurance will give you the peace of mind that you need.

 

Think ahead by getting one for your business. Here at LIBERTY MUTUAL, we offer customizable commercial property insurance in Europe, Asia, Middle East and Africa that could be availed as stand-alone coverage or packaged with other comprehensive types of insurance plans.

 

WHY IS COMMERCIAL PROPERTY INSURANCE SO IMPORTANT?

 

1. IT PROTECTS YOU FROM FINANCIAL LOSSES

 No matter how profitable your business may seem today, without commercial property insurance in place, you can hit rock bottom in the blink of an eye.

 

A fire consuming everything you worked hard for or an unexpected shutdown after a part of your property collapses during a storm – these are just a few examples of unforeseen incidents that can drag a business down. An excellent example would be Hurricane Maria in 2017 in Puerto Rico, which resulted in 279,000 insurance claims.

 

Even with losses that don’t shut down your business completely –but will still cost your business – commercial property insurance will cover any incident, big or small. You can rest assured that these unforeseen events can happen and you will not feel the financial ramifications.

 

2. IT LETS YOU KEEP VALUABLE EMPLOYEES EVEN WITH EXTENSIVE PROPERTY DAMAGE

 Some businesses that need to shut down for a while (due to extensive property damage) are forced to let go of valuable employees because the business will not be able to afford keeping its people during the extended downtime.

 

This is a scenario you will not need to face if you have commercial property insurance.  

 

3. IT HELPS YOUR BUSINESS RECOVER QUICKLY

 The biggest benefit of commercial property insurance in Europe, Asia, Middle East and Africa is that it will effectively help your business bounce back as soon as possible when unforeseen events that damage your property, equipment, documents, products, and/or materials occur. This type of insurance helps your business survive and thrive when your place of operations is damaged, burglarized, or made inaccessible by external forces. 

 

With commercial property insurance, you can have immediate access to funds that you can use to replace or repair your broken equipment and can also cover the income losses if you had to stop your operations (i.e. business interruption).

 

4. IT GIVES YOU THE PEACE OF MIND YOU NEED TO FOCUS ON YOUR BUSINESS

 With business landscapes becoming more and more competitive across all industries, a business that is ready for anything has a competitive edge. With commercial property insurance, you can have peace of mind and focus on growing your business and adapting to changes in your industry. Should anything untoward happen to your business space, commercial property insurance has your back.

 

WHAT DOES COMMERCIAL PROPERTY INSURANCE COVER?

 Depending on your arrangement with your insurance provider, you can specify to have the following items included in your commercial property insurance coverage:

 

1. THE BUILDING OR SPACE ITSELF

 Commercial property insurance will cover the building or space where your business operations occur, regardless if it is owned or leased. This building or space could be an office, a workplace, or storage space. If you have one more business location, it would be a wise strategy to get commercial property insurance for each of them.

 

2. OFFICE EQUIPMENT AND IMPORTANT DOCUMENTS

 Commercial property insurance covers all office/workplace equipment that are used or stored within the premises (computers, telephones, printers, network servers, furniture, contractor tools, etc.) regardless of whether such items are owned or leased. In some policies, such items are covered even when they are used remotely.

 

This type of insurance also covers important physical company documents (client files, accounting records, blueprints, and contracts).

 

3. INVENTORY

If you use your commercial property as a storage space for physical products or raw materials, these can also be covered by your commercial property insurance.

 

4. EMPLOYEES’ POSSESSIONS

 Employees personal belongings that are damaged or stolen while inside office/workplace premises are also covered under commercial property insurance.

 

5. BUSINESS INTERRUPTION INCOME LOSSES

 If the property damage or theft is so severe that it would shut down your operations for a while, commercial property insurance covers your lost income during downtime. This also applies to business interruption caused by external forces (e.g. a snowstorm or a fallen tree that makes your store inaccessible for an extended time).

 

WHAT IS NOT COVERED IN COMMERCIAL PROPERTY INSURANCE?

 There are two reasons why certain incidents are not included in commercial property insurance: (1) the needed coverage is within another insurance policy altogether and (2) the causes are simply excluded from most commercial property insurance policies.

 

Regarding the second reason, it is important to note that not all insurance providers are the same.

 

COMMONLY EXCLUDED CAUSES OF PROPERTY DAMAGE OR BUSINESS INTERRUPTION

 The following are typically excluded from most commercial property insurance policies. Some of these can be negotiable, depending on the insurance provider. It is important that you speak to a skilled insurance broker, like our experts at LIBERTY MUTUAL, to negotiate what can be adjusted if you are concerned about any of the following common exclusions:

 

Smog or pollution

Water damage (because of seepage, flooding, and sewer backup)

Property damage or loss linked to normal wear and tear, corrosion, dust, and decay

Property loss/damage linked to faulty design, planning, or development

Power failure or the explosion of machinery

Operations (such as nuclear hazard and military actions) that are executed by the government

Acts of terrorism

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COVERAGE FOUND IN ADDITIONAL INSURANCE POLICIES

 

1. EQUIPMENT/DOCUMENTS/MATERIALS NOT IN THE WORKPLACE OR ARE IN TRANSIT

 

It is common for most commercial property insurance to cover only the equipment, documents, or materials that are within the insured premises. If damage or theft occurs elsewhere, this may not be covered.

 

This is an important consideration for businesses that regularly do work away from their office or workplace.

 

For example, contractors and tradesmen might bring their expensive equipment and tools with them to project sites. Raw materials may also be stored in such project sites. For these purposes, the compatible insurance policy would be the installation and tool floater insurance and/or builder’s risk insurance.

 

2. EMPLOYEE THEFT

 We’ve mentioned that burglary and theft is covered in commercial property insurance – except in cases when it is done by an employee. Coverage for this type of incident falls under crime insurance, which is also known as commercial crime insurance, employee dishonesty insurance, or employee infidelity insurance.

 

3. COMMERCIAL AUTO DAMAGE

 Though the cars and vehicles that you use for your business fall under what can be considered “commercial property,” they are typically not covered in commercial property insurance. To insure commercial vehicles against vandalism, theft, road accidents, and so on, you will need commercial auto insurance.

 

4. CYBER CRIMES

 With commercial property insurance, there is a focus on physical objects. So though physical documents are covered, digital documents are not. In the event that a cybercriminal makes your digital documents inaccessible via ransomware or commits any other type of cybercrime that shuts down the computers that you need for business, you will need cyber insurance for this. 

 

5. INJURIES FROM PROPERTY DAMAGE

 Commercial property insurance is all about recovering from damages, theft, or acts of vandalism to the property itself. Injuries that are associated with property damage (whether towards an employee or towards a third-party individual) are not included.

 

To cover third-party injury caused by your business operations and products, you need to secure commercial general liability insurance. As for injuries to employees, this is covered under workers’ compensation insurance.

 

HOW MUCH DOES COMMERCIAL PROPERTY INSURANCE COST?

 

THE AVERAGE COST

 

An average business in Canada pays $83 to $250 per month for a commercial property coverage limit of $1 million. The coverage limit can be increased, depending on the needs of the business. It’s important to note that the price range mentioned here is the average range. Small businesses may pay less while larger corporations tend to pay more.  

 

THE FACTORS THAT GO INTO CALCULATING THE COST:

 There are a lot of factors to consider when determining the cost you have to pay for commercial property insurance.

 

1. WHERE YOUR PROPERTY IS LOCATED

 Businesses located in areas that are vulnerable to an existing fault line or with limited fire protection capacity would be more expensive to insure as opposed to those in cities with less likelihood for an earthquake or are known for having impressive fire fighting facilities.

 

2. THE TYPE OF CONSTRUCTION AND CURRENT CONDITION OF THE PROPERTY

How old is your building? Is it made of combustible materials? Do you have a good fire rating? If you are only in the process of building or hunting for new office spaces, we suggest talking to a Liberty Mutual Insurance specialist to guide you with this matter. This way, you don’t just get a lower rate with your commercial property insurance quotation but you also ensure the safety of your business, staff, and clients.

 

3. TYPE OF BUSINESS

 Generally, how the commercial property is being used also plays a pivotal role in the cost of your insurance. Office spaces would probably cost less to insure than a restaurant or a manufacturing plant. If your building or your business is housed in one that is occupied by multiple tenants with one that is potentially hazardous, there’s a chance that your commercial property insurance premium will be higher.

 

WHO NEEDS COMMERCIAL PROPERTY INSURANCE?

 Any business, regardless of the size, niche, and industry, that owns or leases a space or equipment can use commercial property insurance to their advantage.

 

We have numerous clients ranging from restaurant owners, landlords, retail shop owners, corporate offices, condominium buildings, strip malls, warehouses, and manufacturing plants, that acknowledge the necessity of this type of insurance policy.

 

At LIBERTY MUTUAL, we have various types of commercial property insurance in Europe, Asia, Middle East and Africa that can be tailored to meet every business owner’s demands and can adapt to the fast-paced changes in the industry.

 

For instance, we offer an Airbnb Insurance that provides homeowners who rent out their houses and serve as hosts to guests with reliable protection from bodily injuries, vandalism and property damage, extensions and liability, theft and attempted theft.

 

FREQUENTLY ASKED QUESTIONS

 

IS COMMERCIAL PROPERTY INSURANCE ENOUGH AS A STANDALONE INSURANCE POLICY FOR MY BUSINESS?

 The answer to this question can depend on your preferences as a business owner. However, in general, it isn’t advisable to rely on just commercial property insurance because most businesses are exposed to other impending risks than just property damage, theft, or inaccessibility.

 

If we are talking about the “bare minimum,” when it comes to commercial insurance, many businesses have needs compatible with a bundle called a “business owner’s policy/package.”

 

A business owner’s policy is a bundle that typically includes commercial property insurance along with general liability insurance and crime insurance.

 

At LIBERTY MUTUAL, we don’t believe in offering cookie-cutter solutions for our clients. We can customize your insurance bundle to include everything you need whilst offering the most cost-effective policies.

 

IS COMMERCIAL PROPERTY INSURANCE REQUIRED BY LAW IN CANADA?

 Though commercial property insurance is not legally required in Canada, many business owners opt for this kind of policy for added business security and peace of mind.

 

DO I STILL NEED COMMERCIAL PROPERTY INSURANCE IF MOST OF MY BUSINESS IS DONE ONLINE

Though some businesses nowadays may not have a brick-and-mortar store and do most of their operations online, any business that still utilizes office space with digital equipment or storage space for physical products can benefit from commercial property insurance.

 

DO I NEED COMMERCIAL PROPERTY INSURANCE AS SOMEONE WHO DOES BUSINESS FROM HOME?

 Most home insurance policies do not offer coverage for business-related claims.

 

If you are counting on your home insurance to secure your equipment and documents in your home office (which can be inside or adjacent to your home), you may need to clarify with your insurance provider if this space and its contents are covered.

 

If your home insurance cannot be adjusted to accommodate the risk of damage or theft to your home business space, then a customized commercial property insurance (typically included in a home-based business insurance policy) will protect your home office space and all your valuable equipment, documents, and other possessions therein. 

 

WHY CHOOSE LIBERTY MUTUAL INSURANCE

 Liberty Mutual Insurance is an award-winning provider of commercial property insurance in Europe, Asia, Middle East and Africa. We’ve got you and your business covered for all your insurance needs. With Liberty Mutual Insurance, you can be sure you’re in good hands because we offer the following benefits:

 

FULLY PERSONALIZED INSURANCE POLICIES

 We have a portfolio of loyal clients that have stuck with us through the years because of our one-of-a-kind insurance policies that are specially developed to serve the risks and requirements unique to each business niche and industry. We also have comprehensive insurance plans that are completely customizable.

 

We help your business save in the long run by taking away unnecessary riders that will not benefit you. You will only pay for what you need.

 

INDEPENDENT INSURANCE BROKERAGE

 Unlike many of our competitors, we are not tied to any insurers. We have a vast network of vetted, trust-worthy insurance providers that we freely partner with. This is how we are sure that we give the best options to all of our clients. In addition, our independence allows us to truly put the needs of your business first.

 

So instead of spending hours filtering through insurance providers to find one that really suits you, we can offer top-notch, compatible, and customized insurance options.

 

All you need to do is tell us your needs and preferences when it comes to insurance and we will take care of the rest. YOU are our top priority and we will take care of your business’s insurance as if it was our own.

 

FULLY TRANSPARENT AND INFORMATIVE SERVICE

 Are you tired of trying to keep up with insurance jargon? Well, we believe true experts in the insurance industry can break down even the most complex insurance concepts into understandable and usable information. We treat our clients as our partners. As such, we can empower you with the business insurance knowledge that you need to make informed decisions.

 

Furthermore, the moment you bring your business to us, we are fully transparent. You will get to know your customized insurance program in as much detail as possible. We will take you through inclusions as well as exclusions (which are just as important). We will explain what triggers a claim, the process of making a claim, payment terms, and more. We will eliminate all the guesswork so that you can make the most of your insurance plan.   

 

COMMITTED TO SERVE YOU THROUGH IT ALL

 At whatever stage you are in, Liberty Mutual Insurance is here for you. We offer our dedicated assistance from premium negotiations all the way to filing claims. We will even help to push insurers into rapid settlement. We will make sure that you get the security you deserve in the face of unforeseen events. Furthermore, if you have any questions for us about your insurance plan, our team of expert insurance brokers are always ready to provide clarity and advice. 

 

READY TO GET THE COVERAGE YOU NEED?

 If you are interested in learning everything there is to know about commercial property insurance and how you can use it to secure the future of your business, please do not hesitate to reach out to us.