Commercial Property Insurance

Building

Do you own a commercial building? If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Give Pavese-McCormick a call today at 732-247-9800, and we’ll help you determine if you have enough commercial property insurance for your business.

Flood

Most commercial property policies exclude flood as a covered cause of loss. A separate policy must be purchased to protect you from resulting damage. Check your current property insurance policy to be sure you are covered. If you’re unsure, just ask Pavese-McCormick to review your coverage, and we’ll help you find the best solution.

Business Personal Property

Business personal property insurance covers property at a specified location for furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an inland marine policy (equipment or installation floater).

Business Income (Business Interruption Coverage)

This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed. It applies while the premises are being restored because of damage from an event, such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. Pavese-McCormick strongly recommends that all businesses acquire this coverage.

Ordinance Or Law Coverage

The standard building and personal property coverage form excludes coverage for any costs associated with the operations of building laws or ordinances. This coverage can be purchased to provide coverage for the increased costs and effects due to building laws that had previously been grandfathered but that are activated because of a significant loss. Coverage “A” applies when laws require that a building not meeting current building codes be torn down following a significant loss so that it can either be constructed to meet current standards or that the owner must move to another location. Coverage “A” covers the value of the undamaged portion of the building that must be destroyed. Coverage “B” pays for the cost to demolish the undamaged portion of the building. Coverage “C” covers the increased cost of construction required to meet current building codes.

TIME ELEMENT – Off Premise Utility Services

Most businesses depend on utilities that provide water, electricity, heat, air conditioning, and communication services to conduct their operations. Many experience a major indirect loss of income or incur substantial extra expenses to continue operations in different ways or at other locations when any of these critical utility services is interrupted.

Many businesses incur extra expenses to resume operations quickly in an attempt to reduce the amount of their business income loss. They may change to an auxiliary power source or physically move to a temporary location to continue operations or provide services.

Time element coverage forms do not insure these indirect (and often costly) exposures to loss when the interruption of power is due to a cause of loss that occurs off premises. However, coverage can be added.

Note: Overhead transmission lines are included only if checked as covered on the endorsement schedule.

Electronic Data Processing (EDP)

This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.