Commercial Building Insurance: 4 Steps For Reliable Coverage

Commercial building insurance protects your business from the losses that can occur from theft and vandalism, as well as natural disasters like floods and earthquakes. This insurance can also protect you from the mistakes you might make that cost you your customers. It is important when shopping for commercial building insurance to make sure that you have the best protection at the best price. Follow these steps to ensure you obtain adequate coverage.

1. Determine the Coverage You Need

Familiarize yourself with the types of commercial insurance you may need. Even if you don't need all of the types of coverage that are available now, you may need them at some point in the future as your business grows and expands. By being familiar with the different provisions that are available, you will know which are most applicable to your business. At the very least, you will need a basic liability policy that protects your building from theft and damage and protects your customers in case they are injured while in your facility.

2. Work with a Trusted Insurance Agent

The most important choice you can make when shopping for commercial insurance is the agent and company. Because this company will often represent you and provide investigative support for you in the case of a claim or a lawsuit, it is vital that you choose an insurer whom you can trust. Be sure to provide your agent with detailed information about your business and your coverage needs and be willing to listen to your agent's advice about coverage and policy provisions. You can get a recommendation for a good insurance agent from a business associate if you don't already have one.

3. Get a Second Quote

Once you have ironed out the details of your coverage, you should obtain another quote. While cost should not be your only consideration, minimizing cost is responsible managing. Make sure when you are comparing quotes, however, that the commercial building insurance coverage quoted by each provider is as close to identical as possible.

4. Read the Binder Carefully

Before agreeing to a policy, your agent will provide you with an insurance binder that clearly specifies your coverage. It will also detail what is not covered. It is imperative that you read and understand the policy before paying and agreeing to the insurance.  Ask questions about confusing points and don't hesitate to have the agent provide you with a "what-if" scenario to help you understand the limits of your coverage. Don't sign off on the insurance until you are confident it contains the coverage you've requested.

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