Does Commercial Property Insurance Cover Fire Damage?
Commercial Fire Damage Insurance Coverage
Commercial property insurance can cover any structure zoned for commercial use. Depending on the level of coverage and any additional endorsements, this insurance should pay for damage resulting from burst pipes, fire, explosions, storms, or theft and vandalism. Commercial insurance can shield businesses from bearing the extensive costs of fire damage alone.
The pricing of these policies depends on several factors.
- Fire protection levels: The cost of a business insurance policy that covers fire may vary depending on the distance of the closest fire station. You may pay higher premiums if you are far from assistance or do not have suitable fire suppression safety equipment in your place of business.
- Building materials: The materials used to build a commercial property may also play a major role in determining how much commercial insurance for your business will cost. Is the building built out of fire-resistant materials or combustibles like wood? Do newer structural features or updates maintain the same level or a higher level of fire safety than the rest of the building? Insurers will factor in any additions and modifications as well as the original structure, which may either raise or lower premiums.
- The type of business: When it comes to buying property insurance or policies that compensate for business interruptions, offices are generally considered to be safer commercial properties than restaurants or businesses that work with potentially hazardous substances.
Fire is a common risk covered by commercial property insurance no matter where your business is located. Some policies may require endorsements for other less common disasters such as earthquakes or floods. If you are considering purchasing commercial insurance for your property in Chicago, IL, you should carefully assess the fire risks of your property and determine the best policy for your needs. If a fire does occur, this coverage may offset the cost of fire damage mitigation.