Best Commercial Property Insurance in California
Commercial property insurance is generally part of a Business Owners Policy (BOP). No matter if you are an apartment complex owner, starting your own business, or have a well-established business running for years—knowing the intricacies of commercial property insurance can help you choose the best carrier in the market.
What is a Commercial Property Insurance?
Commercial property insurance (aka commercial property and casualty insurance) protects business properties and contents against loss or damage, like fire, theft, storm, or other physical destructions. These policies may also protect against loss of income or higher business expenses that might arise from damages.
What does your Business Property Insurance cover?
The most basic form of policy covers the building of your commercial property and all the contents inside the property like computers, documents, inventory, supplies, etc. It also covers any exterior fixtures like fences, lights, landscaping, or even patio furniture—as long as they are associated with your business. Property insurance for a business can also help cover the costs of repairing or replacing damaged or stolen property or equipment that isn’t yours but is in your care and custody. However, damages caused by floods or earthquakes are not covered by commercial property insurance. Also, a property insurance policy does not cover all legal risks to your business.
How much does Commercial Property Insurance costs?
The premium of commercial property insurance depends on several factors like the risks associated with your business, your property’s value, the nature of your assets, and your company’s size. However, your premium might be more or less depending on your situational factors and key elements.
- Construction: The age and the condition of your building can impact your premium. A good state of electrical or plumbing system can lower your insurance premium.
- Location: This refers to your physical surrounding. A business property located in a wildfire-prone area will have costly premiums compared to a business located inland.
- Occupancy: This factor links to the footfall and size of your workforce in the property. Insurance carrier considers a company with high occupancy into a high-risk profile and charges the premium accordingly.
- Protection: This factors in any mitigation or preventive arrangements that are present at your business property. Smart security systems, fire alarms or sprinkler system pulls your premium towards the south.
- RCV or ACV: A policy offering Replacement Cost (RCV) pays for repairing property with similar materials and quality. However, the Actual Cash Value (ACV) policy pays out the cost to replace the damaged property with a new property of similar style and quality, less depreciation. Typically, the premiums for ACV policies are lower because a lower limit is used due to the depreciation deduction.
Best California Commercial Property Insurance
Every insurance provider has its advantages and disadvantages. What is best suitable for a business might not be the best option for other companies? While selecting a business property insurance, one should look for the comprehensiveness and customizability of the insurance policy and financial stability of the provider. We evaluated a few insurance providers regarding their financial stability, underwriting process, key offerings, bundling opportunities, and customer reviews. At Don Williams & Associates, we work with all three of these carriers and many more to make sure you are getting the best rate possible.
The Hartford:
A+ (Superior) rating from A.M. Best
It offers comprehensive property insurance as part of BOP or standalone. They provide numerous customizations like Green Upgrades (replace or repair using eco-friendly options), Perishable (covers perishable goods), Off-premise utilities (covers sewer mains or pumping station), and legislations (covers against ordinances or laws). Their website hosts many educational materials like business insurance checkups, risk-mitigation strategies, or suggested additional protections. Hartford policies are generally best for franchise retailers as it includes coverage to help pay additional costs a franchise may incur to upgrade damaged property to franchise standards.
Liberty Mutual:
A (Excellent) rating from A.M. Best
Liberty Mutual is more suited for small business or mom-and-pop shops. They offer various add-ons manufacturers like protection against professional liability, equipment breakdown, and product recalls. Their policies provide industry-specific solutions for specific risks, inland marine insurance policies, and protection against the real-estate portfolio.
Nationwide:
A+ (Superior) rating from A.M. Best
Nationwide is one of the top insurance providers for property and casualty insurance across the country, offering excellent contractor equipment protection along with a full array of business insurance policies. They have exceptional national coverage and provide online material for prevention and loss-control measures. The Nationwide policies deal with real estate development risk of all sizes, from a small strip mall to a major complex. Their website has features like online claim reporting, premium payments, and policy management.
Take-Away
Don’t assume things. Ensure that your business policy correctly considers your actual risks and covers them specifically so that you can minimize any potential losses. It’s always better to get an expert opinion and seek out a qualified, experienced agent who fully understands your circumstances so you can have the right coverage whenever you experience a loss or damage.
Reach out to one of our insurance experts today at 408-402-3646 or fill out a form here to see how we can help protect your business!