How Much Is Commercial Property Insurance? 5 Variables That Impact Cost

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How Much Is Commercial Property Insurance? 5
Variables That Impact Cost
Are you a business owner? Do you have commercial
property insurance coverage? Owning a business
comes with risk. And operating a business without
insurance coverage is even more of a risk.
If you are a business owner, a commercial
insurance policy is a must. You need the
assurance that your company can stay afloat no
matter what challenges come your way. This type
of protection can save you from many headaches
down the road. While the need for commercial
insurance might be apparent, calculating the cost
of a policy is a more complicated matter. A quick
online search asking the question, how much is
commercial property insurance, yields all sorts
of answers. Why? 

• Commercial property insurance is not the same as
  commercial general liability insurance

Before we dive into the makings of commercial
property insurance, it is important to know the
difference between commercial property insurance
and commercial general liability insurance. One
type of policy does not replace the other. They
serve different purposes and work together to
provide separate coverages. 
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• Commercial Property Insurance

Commercial property insurance is also referred to
as commercial building insurance. If you are a
business owner that owns a building, this is the
policy for you. 
When formulating your policy coverage, it is
critical to remember these real-life scenarios.
Tragic events that result in property damage can
do harm to the business. But you can prepare for
these events by having the proper coverage in
place BEFORE anything happens. 
Lets say you bought a whole life policy thats
accrued cash value.
Youve contacted an agent for help selecting a
cheaper policy that still protects your family.
When formulating your policy coverage, it is
critical to remember these real-life scenarios.
Tragic events that result in property damage can
do harm to the business. But you can prepare for
these events by having the proper coverage in
place BEFORE anything happens.  All policies are
not made equal. Coverage varies, so our goal is
to identify the right kind of commercial building
insurance policy that protects your
specific business needs and physical assets. 
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Commercial General Liability Insurance
While commercial building insurance covers
property, commercial general liability insurance
coverage helps you maneuver through a liability
lawsuit. For example, if an individual is hurt
while on your property and decides to sue your
business for bodily injury, a commercial general
liability insurance policy would cover that type
of claim.  Business liability coverage also
falls under a commercial general liability
policy. This sort of coverage protects you
against slander, libel, copyright infringement,
invasion of privacy, and misappropriation of
advertising ideas when it comes to advertising
your goods or services. 

• How much is commercial property insurance when
  you own a business

Now that weve defined the difference between
commercial property insurance and commercial
general liability insurance, lets break down
what goes into the price of property
insurance.  Typically, high-risk properties will
have higher insurance rates compared to low-risk
properties. Your premium amount will be based
upon several factors, including
1 CONSTRUCTION TYPE/BUILDING MATERIALS What
is the overall condition of the building? What
the building is made of can have a drastic impact
on the price of your property insurance policy.
Another factor is if the buildings materials are
fireproof. What about the interior materials,
such as the floors, doors, and walls? Do those
consist of fire-retardant materials? If not you
may find yourself paying more than you
anticipated.
2 LOCATION/GEOGRAPHY Is your building
located in a high-crime area known for its
criminal activity? What about the chance of
natural disasters? If you find yourself in either
situation, it could result in a more expensive
property insurance policy. If the value of your
building is based upon its location, this could
also impact the cost of an insurance policy.
Surprisingly enough, if a neighboring business is
a potential risk to your property that could be
another variable capable of raising your price
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3 EQUIPMENT/MACHINERY Will you be operating
large or heavy equipment? The type of machinery
you rely on for daily tasks is a factor that will
certainly play a role in how much you pay for a
commercial insurance policy.
4 INDUSTRY/PROPERTY USAGE The type of work
you do in the building you occupy is another
important factor when it comes to determining how
much a commercial property insurance policy will
cost you. For instance, if you do work that deals
with hazardous or toxic materials you will likely
wind up paying more than someone who occupies an
office space with no harmful or dangerous
materials present.
5 AGE/UPDATES When was the building
constructed? The age and condition of the
building are also vitally important when figuring
out how much a commercial property insurance
policy will cost. Thats because buildings that
have been recently updated or renovated are not
considered as much of a risk compared to those
that arent.
6 FACILITY SYSTEMS/AMENITIES Building
amenities also have an impact on the price of a
commercial property insurance policy. Thats
because buildings can have features that add
additional safety and security features. These
features can include sprinklers and alarm
systems that are likely to reduce the amount of
irreparable damage from circumstances beyond your
control. Being located near Fire and Police
stations can also be helpful in that regard.
7 SIZE/STORAGE As you can imagine, the size
of the building is another factor that will
affect how much you pay for a commercial property
insurance policy. Larger buildings with extensive
warehouses and storage facilities will likely
result in more costly policies.
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Finding the right kind of coverage for your
business needs is critical to your livelihood

• Are you wondering how much commercial property
  insurance will cost for your business? 
• We can help!
• We have the expertise and knowledge to help you
  determine what kind of coverage you need at a
  price that fits your budget. 
• We pay attention to the little details that end
  up being significant details in the event of a
  major disaster. 
• We take the time to answer your questions and
  address your concerns. 
• We research different coverage options to ensure
  you receive the best type of policy for your
  business, yet save money too. 
• We make your business needs our top priority.

The peace of mind that comes with commercial
property insurance coverage is irreplaceable.
You  wont regret the decision to protect the
livelihood of your company.  Give us a call at
480-981-6338 to get started. If you want to chat
online or meet in person, either way, that works
great for us. You can also contact our office by
filling out a short online form.
Contact Us Insurance Professionals of
Arizona 3521 E Brown Rd 101, Mesa, AZ 85213,
United States Website www.insuranceproaz.com Cont
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