Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Business property insurance

Every business needs business property insurance. This type of coverage insures the place of business as well as everything inside. If anything were to happen to the place of business that makes it impossible to run, business owners would not be able to produce their income.

Business property insurance is what will make it possible for business owners to return the business to what it was before the disaster happened.

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How Much Does Business Property Insurance Cost?

The insurance agents will need several pieces of information before they can determine how much property business insurance will cost each individual business. Some of the features that will be taken into consideration are:

  • The size of the business
  • The industry the business is in
  • How many years the business has been operating
  • Where the business is located
  • The business’s credit history
  • How well the building has been constructed
  • How many people occupy the building
  • Who the neighbors are

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How Premiums Are Set

Once the insurance agents know the information that has been listed above, they can do calculations that will help them set a business’s premiums. Insurance agents determine the value of the building and the contents inside.

With the information listed above, they determine that a business is a high, medium or a low risk and give it a monetary value. After multiplying these two numbers, they have an amount to charge for the premiums and your business will have a price for business insurance.

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If the business owners don’t like the numbers they are quoted, they don’t have to purchase their property business insurance from that company. They may seek a quote from several companies in order to find the best price.While one insurance company may decide that a business is a high risk, it’s very possible that there is a company that will consider them to be a low risk and quote a much lower price.

What Lowers a Business’s Risk?

A new building that has been constructed to be fire resistant is going to be considered to be a lower risk for insurance companies. These are buildings that were constructed with bricks as well as those that have fire-resistant materials in the doors, walls and floors.

If the building is older, business owners can ensure that they are offered the lowest premiums by upgrading their wiring, plumbing, heating, ventilation and air conditioning systems. They may also install a sprinkler system that will lessen the damage that a fire will be able to do.

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Features Out of a Business Owners Control

Sometimes, a business has a feature that makes it a lower risk, but other business owners can’t necessarily do anything to make their businesses fall under these categories. One is being located close to a fire station. If the fire station is right across the street, the damage will be minimized if there is ever the need for fire personnel to come to the aid of the business.

Business owners can’t do anything about who their neighbors will be if they are tenants sharing a common building. If the business has a neighbor that presents a particularly high risk, the business next to it will suffer by having its risk level raised.

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The business may also have a large number of traffic coming in and out of the premises. One example of this type of establishment is a restaurant. This type of business would never want to decrease the number of people that come into their places of business, so they will be considered a higher risk.

It also may not be possible to move the business if it’s located in an area that has a high crime rate. If this is the case, the insurance agent sees this as a high risk and charges higher premiums.

Lower Premiums by Comparison Shopping

When people can’t do anything about the things that are making them high risks for property business insurance, they must find other ways to lower their premiums. It’s at these times that they need to compare the quotes they can receive from multiple insurance companies.

A business may be located in a high-crime area but if the business owners shop around for several quotes, they are bound to find some insurance companies that are willing to insure them for less expensive premiums. Looking into this doesn’t cost them a dime; it’s a completely free service and has the potential to save these business owners a lot of money.

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The Importance of  Business Property Insurance

Even if someone has a higher risk business to insure, it’s highly advantageous to business owners to purchase business property insurance. It’s precisely this reason that business owners need to seriously consider purchasing property business insurance; if they have a high risk of experiencing loss due to a fire, for example, they are the most likely people to need this type of insurance.

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What Business Property Insurance Covers

Property business insurance refers to the building or the building unit where the business operates. Everything inside, such as the telephones, computers and inventory, that make the business run are the contents inside the building. Both the building and the contents are covered under property business insurance.

Business owners have the choice of purchasing a policy that covers them for all different types of risks. If they would like to only insure for the most likely perils that may befall their particular businesses, they may do this by purchasing a policy to cover specific perils. When these disasters befall the business and destroy the building and the contents inside, the business property insurance pays to reconstruct the building and replace the contents.

Protect your Investments

Without property business insurance, a fire may destroy more than just the place where the business operates; the business owners and all of their employees also will lose their livelihoods. In order to protect their businesses from this type of disaster for the most affordable price, business owners only need to take advantage of this comparison website to find the lowest prices for property business insurance.

Save money and time by comparing business insurance quotes today. Enter your zip code below to get started!