WHY EVERY TEXAS BUSINESS NEEDS PROPERTY

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If you run a business, you need commercial property insurance, no doubt about it. Whether you own your building, work from home, or lease your space, commercial property coverage is imperative. Small businesses especially need the coverage. They might not have the necessary cash flow to replace equipment, a location, or precious inventory if a fire or other unforeseen event causes damage.

Texas Commercial Property Insurance Explained

Commercial property insurance protects your businesses real assets against covered events like fire, explosion, burst pipes, storms, vandalism, and theft. Let's say you rent your space. While you don't need to have property coverage for the building, your landlord may ask that you take out general liability policy in case you cause damage to the space. However, you may not have added property coverage for your contents or inventory to that policy. Property coverage will protect your stuff. It can also protect any improvements you may have made to make your leased space your own. Some lease agreements will state that the tenant is responsible for any betterment or enhancements made to the area. It's essential that you know when entering into a rental agreement, what your responsibilities are.

Business Property Insurance

Obtaining property insurance for your business is as easy as starting any other policy. You may even add property coverage to an existing general liability policy. Or depending on the type of business you run, a business owner's policy will provide property coverage as well. Typically, commercial property offers the following coverage:

1) Your building. Usually, this means the structure, but it can include machinery, permanent fixtures, and equipment.
2) Things outside of the building. This may include any fencing, exterior signs, and landscaping or other equipment.
3) Contents of your building. Commonly, this will be items that can be quickly taken out, office equipment, like inventory, and other supplies.


Property of others. This section covers the property of others left in your care, custody, or control. For instance, a client might ask to use an outlet at your location to charge their phone or laptop. Once it's in your care, it could be your responsibility if it's damaged.

As with most policies, commercial property insurance has things it covers and stuff it doesn't cover. For example, most commercial property insurance pays when your stuff is damaged by common problems like fire, theft, or windstorm. However, many times, some events cause property damage that are excluded; the two major ones are earthquakes and floods.

Commercial Business Property Insurance

Why You Need Business Property Insurance in Texas

Chances are if you own your building, the lender you purchased it from asked that you carry property insurance as part of the terms of the loan. If you would like a review of that policy, we would be happy to help. For those that lease their space or work out of their home, commercial property insurance is essential.

If you work from home and a loss occurs damaging your entire inventory for your online sunglass store, for example, your homeowner's insurance may not cover it. You would be left with a massive hit to your bottom line.

Maybe you lease your space. Let's say you put in custom shelves and racks to display all your stock. However, a pipe in the ceiling burst and damaged not only your merchandise but the racks and shelving as well. If you don't have the right property insurance, replacing it could come out of your pocket. There is a good chance your bank account couldn't sustain a hit like that. Some other claim examples that plague business owners include:

Wind & Hail $26,000
Burglary & Theft $8,000
Fire $35,000
Water & Freezing Pipes $17,000
Final Thoughts
Running a business can be stressful. Don't add to it by leaving your business unprotected! To learn more about commercial property insurance contact the experts at www.TexasPnC.com or call (972) 293-2139 or (800)903-8690. Our licensed insurance experts will be happy to answer any questions that you may have.