Commercial Property Insurance - Florida
What is Commercial Property Insurance in Florida?
Commercial property insurance, or business personal property, is a type of business insurance coverage that protects your commercial property if it’s damaged from a covered unexpected event. It also protects equipment and tools that you use for your business operations. Events that may call for a commercial property insurance claim include Fire, windstorm, hail, theft, and vandalism. Depending on your commercial property insurance policy, more perils could be covered. Commercial property insurance protects the foundation of your business- its property- against many risks, so you can focus on growing confidently.
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Why Do Commercial Property Owners in Florida Need Insurance?
Who Needs Commercial Property Insurance?
If your business operates physically, you will most likely benefit from having commercial property insurance as part of your small business insurance. Key beneficiaries include property owners, tenants, and businesses with physical assets. Additionally, home-based businesses need commercial property insurance, as personal home insurance doesn’t cover business-related assets. Your business property insurance policy protects your business property and its contents from many financial burdens.
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Get a QuoteWhat Doesn’t Property Insurance for Commercial Buildings Cover?
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Flood and earthquakes: A standard policy doesn’t include flooding and earthquakes. If your location is prone to these natural disasters, consider additional coverage options.
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Wear and tear: Damage from normal wear and tear, gradual deterioration, or lack of maintenance is not covered in any insurance policy.
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Pollution: Property insurance doesn’t cover loss or damage caused by pollution or contamination. For such risks, the business is recommended to get environmental liability coverage.
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Acts of war and terrorism: Losses or damages due to war, military operations, or terrorism aren’t covered. You may need specialized policies or endorsements for these perils.
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Employee theft: Theft is only covered when the perpetrator is an outsider. There is specialized crime insurance for employee dishonesty.
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Intentional acts: Like all insurance types, commercial property insurance doesn’t cover deliberate actions; it only covers unexpected events.
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Which Commercial Property Insurance Form Lists Covered and Excluded Perils?
The form that specifies which perils are covered and which are excluded is called a Causes of Loss Form. There are three main types of this form.
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Basic Form: Includes a list of the covered perils. Anything not listed isn’t covered.
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Broad Form: Contains the list of covered perils, plus additional coverage, such as falling objects, weight of snow, ice, or sleet, and water damage from accidental discharge.
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Special Form: Contains all risks except for a few that are mentioned as exclusions.
Other Types of Business Insurance Coverages to Protect Your Business
Business insurance companies in Florida also provide these types of insurance coverages.
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General liability coverage in Florida: Covers bodily injury, property damage, and advertising injury to clients or third parties.
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Business interruption insurance in Florida: Covers lost income if the business property is damaged, forcing the business operations to stop.
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Commercial hurricane insurance in Florida: A specialized type of coverage that protects the property from hurricane damage.
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Commercial wind insurance in Florida: An additional coverage that protects the property from windstorm damage.
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Business owner’s policy in Florida: A business insurance package that combines general liability insurance and commercial property insurance under one policy.
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Builder’s risk insurance in Florida: An essential coverage if your property is under construction.
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How Much Does Insurance for Commercial Property Insurance Cost in Florida?
On average, businesses are expected to pay between $500 and $2000 per year. That being said, a small business might pay as little as $250, while a corporation might pay up to $10000 per year. Insurance premiums aren’t fixed, each business pays a different amount, depending on its size and type, the value of its assets, its location, and specific coverage needs. Below is a breakdown of commercial property insurance rates.
How to Calculate Commercial Property Insurance Rates
Commercial insurance companies calculate insurance rates by multiplying the value of the property and its contents by the level of risk. That means that if two properties have the same market value, one of them might get a higher insurance rate if it faces more risks of damage or loss.
Other Factors that Determine the Insurance Rates:
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Claims history: A history of frequent or severe claims can result in higher premiums, as it indicates a higher risk profile.
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Construction type: The materials and the building’s age affect its susceptibility to damage. Properties built with sturdier materials get a lower insurance rate.
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Policy details: The deductibles and coverage limits affect the insurance costs. Higher coverage equals a higher price but increasing the deductible decreases the cost of premiums.
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Occupancy: Some business types have higher risk levels. For example, a restaurant is more prone to risks of damage than an office.
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Protection measures: Having security systems, like fire alarms, burglar alarms, and sprinkler systems can reduce insurance premiums.
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Location: Areas where natural disasters are common get higher insurance rates.
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How to Save Money on Commercial Property Insurance
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Compare multiple quotes: Check with different insurers to get the most competitive rates. The commercial property insurance market in Florida is diverse, and prices may vary greatly from one provider to another.
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Bundle policies: Consider purchasing a Business Owner’s Policy (BOP), which combines general liability and property insurance, often at a discounted rate.
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Work with an independent agent: Our agents would love to help recommend the best commercial property solutions.
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Increase your deductibles: Choosing a higher deductible may decrease your premium rate. It’s still wise to ensure the deductible amount is manageable at any point.
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Enhance property safety: Reduce risks by installing a security system to get a lower premium rate.
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Get a QuoteGet Essential Coverage with the Business Owner’s Policy Bundle (BOP)
Business Owner’s Policy, or BOP, is a business insurance package with multiple essential insurance coverages in one policy. It is designed for small to mid-sized businesses as one convenient and cost-effective solution. BOP includes general liability and commercial property insurance with business interruption insurance as an optional addition. While we can help you get commercial property insurance as a standalone policy, we also provide BOP to help you kickstart your business insurance plan. Contact us for more information.
Tips for Selecting the Right Commercial Property Insurance Policy
- Assess your business needs to determine the amount of coverage your business requires.
- Compare multiple quotes to get the best deal.
- Evaluate policy limits and deductibles.
- Ask your insurance provider about discounts.
- Check the insurer’s reputation.
- Seek professional advice from insurance agents.
- Review your policy regularly and make adjustments as your business grows.
Claims Process for Commercial Property Insurance in Florida
When an accident happens, you might get overwhelmed and unsure of what to do. The next steps you take are crucial in helping you get reimbursed for property damage or loss. Here’s what to do:
1- Document the incident with photos and videos.
2- Take the necessary steps to prevent additional damage.
3- Notify your insurer or insurance agent of the accident.
4- Complete the claims form to submit the claim.
5- Schedule an inspection with an insurance adjuster.
6- Cooperate with the insurance company by responding to their requests.
7- Review the settlement and approve it or negotiate.
8- Use the settlement funds to repair or replace the damaged property.
9- Submit receipts for reimbursement if required.
10- Stay in touch with the insurance company to ensure the claim is resolved timely and smoothly.
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Get a QuoteFlorida Commercial Property Insurance FAQs
Property insurance is expensive in Florida because of the high risk of damage from natural disasters and the increasing claims rate. High claim rates in Florida mean insurance companies face high payouts and must increase insurance premiums to cover these expenses.
There are two categories of commercial insurance: property insurance and liability insurance. Property insurance covers damage to the business property, while liability insurance covers the legal claims that the business faces. Liability insurance includes general liability, product liability, and professional liability insurance.
Any space that a business occupies to make a profit is considered commercial property. Examples include offices, retail centers, and industrial parks, which are considered commercial real estate because business occupants pay the landlords to occupy them.
Commercial property insurance protects the business property and its physical assets from:
- Theft
- Vandalism
- Burst pipes
- Explosions
- storms
- Fires
Both types of property insurance protect the business from damage to the property building and its contents. The difference between them lies in the risk factors. Commercial properties face more risks, so they need additional policy endorsements that a residential property might not need.
You need commercial property insurance if you own, lease, or rent a business property. If you don’t have coverage, you will pay to fix or replace the damaged business property out-of-pocket. The expenses might become an obstacle in running your business operations. On the other hand, if you have insurance, the insurance company would pay for the replacement cost value, actual cash value, or market value of the property.
Follow these steps to reduce risk exposure:
- Install security systems, like sprinklers, fire alarms, and burglar alarms.
- Regularly check your alarms to make sure they’re working correctly.
- Conduct safety training for employees.
- Implement a risk management strategy.
Yes. Even if you lease or rent your commercial property, you need commercial property insurance to protect it. Not to mention that some landlords add commercial property insurance as a requirement in lease agreements.
There’s no standard deductible amount for everyone; it may range from hundreds to thousands of dollars. When you review your insurance policy, you can pick the deductible amount as you see fit. A high deductible results in a low insurance premium.
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