Buying or building a property can cost your business quite a large amount of capital– making it vital to protect your investments against unforeseen circumstances.
While there is a lot you can do to protect your property – like installing CCTV cameras or hiring security – there’s not a lot that can be done in situations of fire, flood, earthquake etc – this is where a protecting solution like an insurance policy plays a critical role.
You may not be able to prevent natural calamities, fires, burglaries etc. but you can protect your business from the impact of unanticipated events. A property insurance cover reduces the financial impact caused by damage to your property and protects you from additional expenditure caused by said damage.
What is commercial property insurance?
In a nutshell, a commercial property insurance policy will help you manage the financial losses that might arise due to unanticipated damage in the occurrence of fire, natural calamities etc. As the size and revenue of an organization grows, its susceptibility to risk can considerably increase – this makes it important for organizations to mitigate possible risks that could potentially stop operations. Such risks could have a much deeper impact on the company’s financials because the implications are never temporary. A commercial property insurance policy can assist with business interruptions, losses occurring due to damage to electronic equipment or materials etc.
At Aditya Birla Insurance Brokers Limited, we don’t just offer general risk management solutions; we combine our in-depth knowledge and experience to provide you with risk management solutions that are ideally suited to your business’ needs, so that you can better mitigate and manage risks toward your property. We can help you take stock of potential property risks and get a property insurance quote to best cover risks that are likely to affect your business financially.
We take steps to ensure that your journey with us is smooth and hassle-free and give you the additional value of helping you understand how best you can safeguard your property because we believe that efficient and effective risk management is vital for a successful business.
Benefits of Property Insurance.
- Protection from interruption in operations
Any damage to machinery could result in operations being halted – a pause in business operation can hamper an organization’s progress and eventually lead to financial losses. A good commercial property insurance can cover losses occurred due to interruptions in business operations.
- Add on policies covering a wider spectrum of risks including fire, terrorism, flood etc.
Add-on policies will widen your net of protection against different kinds of risk. Additionally, an add-on policy will come in handy when dealing with losses occurring due to specific damage.
- Deeper understanding of possible risks
While you can go only so far to protect your commercial property, a good commercial property insurance can help you understand the kind of risks that are most likely to affect your business, thereby giving you a deeper understanding of risk and consecutively a better idea of preparing for such risks.
Factors to consider before buying property insurance
- Ensure that you own the property that is being insured.
It is important to own and have proof of ownership when you insure a commercial property. Documents proving ownership are one of the fundamental proofs that need to be submitted while claiming insurance. Also ensure that the insurer is given all the information they need including information on disputes, legal issues, if any, with reference to the property.
- Fixing the Sum Insured
Make sure you are aware of the factors that will lead to fixing a sum insured including market value, reinstatement value, whether you need add-on policies.
Factors effecting property insurance premiums
Several factors help determine your premium for property protection solutions including location of the property, liability exposure, overall maintenance and upkeep, credit history etc.
- Location of Property
Property located in high-risk areas, for instance, properties with greater proximity to rivers and other water bodies, earthquake prone zones, dense forest areas etc. will affect the premium rate for property insurance. Insurers also consider the distance of the property from available emergency sources like the fire department.
- Liability Exposure
Factors like age of the property, existing safety measures and overall maintenance and upkeep of the property can increase or decrease premium rates or altogether disqualify a candidate’s eligibility for property insurance. Insurers will determine the degree of exposure to potential liabilities before insuring a property.