If you have a new or existing business you want to make sure you have all the coverage you need to operate your business. The main way to insure your business is with Commercial Property Insurance. This kind of insurance helps business owners protect themselves from unforeseen disasters to their property, buildings and all the items that are involved in the business.

Natural disasters such as fire, theft and wind damage are some just to name a few that can destroy your business. Do you know what Commercial Property Insurance includes and what it doesn’t. Below are five things you should know about this type of Business Insurance.

1-Businesses with a higher risk factor will end up paying more money for these types of policies. If you have a business located in a busy weather area or just the nature of the business is risky expect to pay more. Another thing to consider is how expensive your business equipment is and the costs to replace it if something were to damage it.

2-Commercial Property Insurance provides security for the stuff in your building. By having the proper amount of insurance to cover all your physical items in your business it can provide peace of mind. Making sure you know everything that is covered and the cost of replacing it in the future can lead to a safe and secure business down the road. Make sure to have the Insurance and coverage amounts always in order.

3-Commercial Property Insurance helps to cover not only the physical aspects of your business but your customers as well. This business insurance will help protect you and them with public liability insurance that is included in this type of insurance. This is a good bargain for being covered in the case of an emergency and protecting your customers is key to your success. Property protection and liability insurance are usually packaged together making it very affordable.

4-Flood coverage is not covered in Commercial property Insurance. Even though this insurance covers most disasters, flood insurance is not one of them. Flood Insurance has to be purchased separately and may be a very needed addition to your property insurance. Flood Insurance can be purchased from the Federal Government. Purchasing this kind of insurance is highly recommended in high risk areas and if your business is flooded your chances of your business surviving are very good with flood insurance.

5-Replacement costs vs. actual cash value is another thing to consider when purchasing a Commercial Property Insurance policy. This is an important part of your policy and can save you lots of money if a disaster hits your business. The cost to replace your assets might end up costing more than the actual cash value of an asset. Make sure to read your Commercial Property Insurance Policy and see what method will be used to figure the amount to replace your assets.

When purchasing Commercial Property Insurance these five tips can help you make a better decision when you go to purchase your policy. Knowing what your policy covers and the relative cost can help you decide on what is right for you.