Business Property

A fire in your workplace can be extremely costly. In addition to the costs associated with fixing the damages, there is also a good chance that your day-to-day business activities will be interrupted during the repairs. To avoid potential expenses related to workplace fires, it is important that you have adequate fire coverage, which is included as part of most property insurance policies for commercial buildings. It is important that you understand your policy to make sure it provides all the protection you need.

There are two primary factors that come into play when dealing with fire protection, Property and Casualty. Make sure your coverage incorporates them both to make sure you won’t be left holding the bill.

Commercial Property: This is the portion of your policy that covers the building itself and the equipment in it. When there is a loss to physical assets caused by a fire or other covered cause of damage, this is what pays for replacement and repair costs.

Commercial Casualty: In the aftermath of a fire, there may be a time period where you may not be able to conduct business, often due to a damaged workspace. This part of your policy will cover any loss of revenue during the recovery period of a covered claim, such as:

  • An electrical malfunction in your equipment sets flammable materials on fire, causing extensive smoke and burn damage before the sprinkler system can extinguish it.
  • A major hail storm damages your building’s roof, causing a leaking problem.
  • After closing one night, thieves break in and steal several kegs of beer, causing damage to the exterior doors while breaking in.