No matter where you base your business operations, there are always risks beyond your control. From natural disasters to accidents and human nature, you’ll quickly realize that damage and loss are inevitable sometimes, which means mitigation measures are essential to your financial strategy.
If you haven’t yet purchased a commercial property insurance policy, it may be time to rethink your procrastination. Below are the most frequently submitted damage claims and how coverage can help your organization rebound from these incidents quickly:
1. Water Damage
When your building has a malfunctioning sprinkler system or pipes freeze and explode in poorly insulated areas of your warehouse, damage occurs quickly and in a wide area. From inventory loss to structural damages and mold, the ensuing repairs are costly, time-consuming, and disruptive to your business operations. Therefore, commercial property coverage is essential to recover and rebuild and often covers much of the following:
- Foundation damage
- Ruined appliances and furniture
- Pest infestations
- Mold and mildew
- Structural damage
- Decor repairs due to discoloration and warping
- Ceiling, wall, and floor repairs
2. Wind and Hail
A recent study by The Hartford found that commercial property damage involving wind and hail accounted for 15% of claims and would continue to do so in the coming decade. This expectation highlights how mitigation through anchoring furniture, trees, and advanced building technologies can only go so far in the face of Nature’s wrath.
However, companies with commercial property protection have a solid foundation for recovery in the face of expensive repair costs.
3. Fire Damage
Your company probably takes fire risk very seriously and minimizes this risk by implementing fire drills, sprinklers, and consistent alarm testing. However, even the most dedicated emergency preparedness strategies can’t prevent a nearby fire from setting your facilities alight, causing devastating damages that could potentially shut down your operations permanently.
Therefore, commercial property insurance is essential to protecting the ongoing success of your business dream and your employees and stock from irreparable loss.
4. Theft and Vandalism
Over the last two years of the pandemic and heightened civil unrest across the U.S., over $800,000 in loss due to theft and vandalism has left some companies unable to reopen their doors. Unfortunately, these incidents aren’t just frightening for business owners and their employees and financially devastating.
Much like storm damage, there is only so much you can do to prevent these incidents from occurring. Instead, it’s essential to take an aggressive approach toward protecting your commercial property from this threat, including comprehensive insurance coverage.
5. Damage to Your Roof and Windows
When you think about roof and window damages, you may focus only on weather events like hurricanes and tornadoes. However, outside factors, like your lawn care service accidentally kicking up rocks or a leaky shingle, can also contribute to this loss. When severe hot weather warps the seals around these areas of your business structure, the harm caused to onsite inventory can take months to reverse.
Without insurance, you could also face high re-investment costs that could impact your bottom line for years.
6. Falling Trees and Branches
Severe weather can blow over the healthiest of oaks, but so can pest infestations, ground instability, rot, and root encroachment. Take a moment to visualize what directions a tree could fall on your property. What would it look like if it hit your building? What about in your parking lot or recreation areas? Imagine the disruption caused if heavy branches break off and strike your power lines.
The resulting damages your business could suffer from a downed tree or branch crashing down from heavy ice can affect everyone on your property, including third parties like clients and vendors.
How Business Insurance Can Mitigate Perils Beyond Your Control
Whether you’re a new startup or just relocated your business, commercial property insurance cost is well worth the investment. It acts as the cornerstone of your risk management strategy and provides three core benefits your company will rely on to financially survive unpreventable perils:
Improved Liability Protection
While your general liability policy insures your company against third-party damage claims, it doesn’t cover commercial property damage to your facilities. Therefore, adding protection specifically designed to ensure against harm to your workplace, onsite equipment, and inventory is a wise investment.
Reliable Financial Loss Recovery
With everything that can go wrong, knowing you will be able to afford the recovery costs after unexpected events damage your place of business is vital. This is especially important for new companies that don’t have enough capital nor access to additional credit to afford financial loss after a natural disaster brings operations to a screeching halt.
Improved Reputation with Stakeholders and Consumers
As an entrepreneur, you rely on your investors, partners, and customers to keep your business running. Having adequate insurance to ensure your ability to meet their expectations is critical in creating a reputation of reliability and financial stability.