About Commercial Buildings
Commercial buildings are structures built for public use and utilized to generate profits. Commercial buildings include a wide variety of building structures such as office complexes, medical centers, clinics, hospitals, schools, colleges, hostels, council offices, universities, police stations, churches, cathedrals, warehouses, hotels, restaurants, libraries, shops, shopping malls and numerous other similar structures.
Differences Between Commercial Buildings and Properties
There is not much difference between commercial buildings and properties. Both are used by commercial insurers, however, commercial properties often refer to large scale architectural projects such as industrial warehouses, consumer goods manufacturing units, oil and gas industrial units and the like.
Commercial Building Insurance
Insurance that is purchased to protect buildings and properties from any kind of loss or damage such as fire, theft, burglary attempts, electrical breakdowns, etc. Commercial building insurance has a higher premium compared to other types of insurance.
Types of Coverage in Commercial Building Insurance
There are several different types of commercial building insurance policies available in. Some of these are :
- Building and Contents : A commercial building and its contents can be given coverage for fire, explosion of gas cylinders and electrical incidents. Damage due to natural disasters may also be covered.
- Engineering Failure :This is insurance against electrical failure or mechanical crash of electrical equipment, computer systems, lifts, lifting equipment and boilers.
- Theft : Coverage of the contents within the premises against theft (provided someone has entered or departed the premises forcibly) is known as theft coverage. If the contents have been stolen by the company’s employees, theft insurance will not cover it.
- Money : This coverage is for all financial items in the building such as cash, checkbooks, stamps, etc.
- Personal Assault Coverage : This coverage gives reimbursement in case you or other employees are physically injured during burglary attempts from the building premises.
- Goods in Transit : This gives coverage to goods that get damaged or misplaced as they are transported. “Goods in Transit” insurance is dependent on the number of vehicles or consignments.
- Business Interruption : Any type of damage to your building premises that leads to any interruption of your business resulting in a loss of earnings and incurrence of extra costs is covered under business interruption insurance.
- Legal Expenses : A situation involves your building premises may arise and you will need to go to court will give rise to legal expenses. These legal expenses include lawyers’ fees, barrister costs, witnesses, court expenses, etc. and are covered with this type of insurance.
- Frozen Food : Shops and stores that contain frozen food in deep freezers can purchase frozen food insurance to protect from freezer breakdown and power failures.