Commercial Building policies are meant for lesser risk businesses such as warehouses, apartment complexes, offices, and strip malls. These policies are generally meant for buildings leased out to tenants, the owner of the building buys this type of policy. These policies include liability coverage and building coverage.
Liability covers accidents like slip and falls. Anyone injured on the premise whether it be your tenant, your tenant’s customer, a neighboring business, is covered under the General Liability portion of the policy. The building coverage covers losses from fires, windstorms, vandalism, burst pipes, and other covered disasters.
The premiums differ according to the types of tenants. 24 hour, childcare, and liquor related businesses are all inherently riskier and will result in higher premiums. Policyowners should call their brokers to update the tenant list to ensure proper coverage. The construction and material of the building can also affect premiums, the greater the fire resistance rating of the building, the cheaper the premium. Location is also important, buildings in places with volatile weather will also be more expensive to insure. The owner of the commercial building buys this type of policy, while the business owners who lease out the space buy Business Owner policies.