Commercial Property Insurance: Insured Risks
overview
The furnishings and goods of a company usually represent a significant value that must be secured. As part of the “business content insurance,” the insurers offer extensive insurance protection, summarized below.
What damages are insured?
Damage due to fire, burglary theft, vandalism connected with a burglary, robbery, tap water, and storm are insured. Also included are business interruption losses that arise in connection with one of the aforementioned loss events. In this case, the insurer also pays the running costs and the lost profit up to the insurance sum amount. In some cases, broken glass can be included for a surcharge. Otherwise, it can be insured separately in each case, commercial property insurance guide.
Do I have to ensure everything?
First, when drafting the insurance contract, check whether you need all the insurance options offered. The business content insurance is offered in a modular concept. Before taking out insurance, ask yourself the following basic questions, types of commercial property insurance.
Do I have to take out insurance (for example, because there is a risk that could destroy my existence)?
Should I take out insurance (because it “hurts” in the event of a claim and the risk is existential)?
Can I do without insurance (for cost-benefit reasons, because I can also pay for it myself)?
To be able to assess this in detail, you must know the insured scope. So let's move on to the scope of insurance:
The fire insurance
Must / Should / Can Insurance ?: Definitely a “must” insurance.
Fire insurance is undoubtedly one of the most important lines of insurance because the risk of total destruction of the company by a fire, an explosion, a direct lightning strike, or the crash of an aircraft, its parts, or cargo is considerable, commercial property insurance 101
The anti-theft insurance
Must / Should / Can Insurance ?: Burglary theft insurance is regularly a “should” insurance, in some industries, a “must” insurance.
Burglary theft insurance is becoming increasingly important. Thousands of burglaries of all kinds are registered every day, the commercial property insurance cost.
The insurance covers, among other things, if a thief forcibly accesses your insurance rooms. Even if someone is hiding in your business premises and can be locked in after the store closes to clear out operations at night, insurance covers this. It is also covered if you are relieved of your belongings according to the motto "money or life," up to a certain amount even on the bank's transport, commercial property hazard insurance.
Shoplifting, however, is not insured. The devastation caused by unpleasant visitors under the motto "we always thought it looked too tidy here," while the shop was open, cannot be insured. On the other hand, with newer insurance contracts, there is usually insurance protection if your property is devastated in the event of a break-in, commercial property insurance average cost.
It is often the loss of material items that "hurts" to the victim and the cost of removing the devastation (vandalism) or repairing the damaged doors and windows, not to mention the cost of the Replace the lost business papers, records, and software.
The water damage insurance
Must / Should / Can insurance ?: Since there are no tap water pipes in some companies or parts of the company, you should first check whether your company rooms are at risk from tap water. Afterward, you can judge whether you are dealing with a “debit insurance” or a “can insurance.”
The dangers of tap water damage are mostly underestimated. Five-figure losses are the order of the day, understanding commercial property insurance.
The insurance covers, among other things, improperly escaping water from the permanently installed supply and discharge pipes, the other equipment permanently connected to the pipe system and the hot water and steam heating systems, commercial buildings insurance for landlords.
On the other hand, there is no insurance for water damage caused, among other things, by rainwater or the backflow of groundwater due to heavy rainfall.
The storm insurance
Must / debit/can insurance ?: It depends on the location of your business. Usually, it is a “can insurance.”
In the event of a claim that was caused by a storm with a wind force of at least 8, storm insurance applies. The insurance also includes damage caused by objects that the storm throws at your belongings (e.g., trees) and by openings that the storm creates. Damage caused by hail is also covered.
If your business is on the ground floor of a multi-story house, you are normally not bothered by a storm. On the other hand, if you run your business on the upper floor or in a one-story hall where the roof can be covered, you should consider taking out storm insurance.
It should also be mentioned that awnings, fluorescent tube systems, signs and banners, protective and partition walls, and roofs attached to the outside of the building are also insured if you bear the risk of this.
The hazard insurance
Must / target / Can insurance? The location of your company is also important here. The range goes from "optional insurance” to “mandatory insurance."
Damage caused by earthquakes, subsidence, landslides, avalanches, snow pressure, and floods is insured. The damage must have been caused by natural, i.e., not man-made causes. If, for example, the building of a company stands on a former mining shaft that suddenly collapses and the house and company are pulled down with it, there is no insured damage. It is the same with a storm surge.
The dangers must be insured in the package. Not only can the owner of a boutique on the Deutsches Eck in Koblenz insure himself against flooding, but he also has to insure himself against the relatively unlikely risk of snow pressure. The hut owner in the Bavarian Alps cannot only ensure himself against snow pressure but also protect himself against flood damage. If you live in a damaged area, you often do not get the insurance; otherwise, high deductibles apply in the event of a claim.
Agreement
Special conditions for the insurance of further natural hazards in case of commercial risks (BEG)
The glass insurance
Glass insurance is a “can insurance.”
One can argue for a long time about whether it makes sense to take out glass breakage insurance. If your company is equipped with many small outer and inner panes - certainly not. It looks different when there are large window panes that cost a lot of money.
Make a cost-benefit calculation.
What else do you have to think about it?
Leave the cash registers open outside business hours and lock cash in a desk or closet. Remember that there is only limited insurance coverage for cash in a locked desk (or a locked container secured against being taken away) (often only up to €511). Therefore, the safest way to keep money is in the bank. If you need to store more cash for operational reasons, get a safe with a minimum weight of 300 kg.
When you take out insurance, name all the rooms you use, including cellar rooms, for example.
Make sure you have adequate anti-theft devices. Be sure to use all existing safeguards that have been agreed with the insurer. Otherwise, the insurance cover is at risk.
If there are companies with an increased fire risk on your property or in the immediate vicinity (e.g., carpentry or a restaurant), you must report this. Otherwise, the insurance cover is at risk. You have to notify this “increase in risk” even if such businesses move in later.
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