Commercial Property Insurance in Florida

Commercial property insurance in Florida is designed to protect businesses from financial losses due to damage or loss of their physical assets, such as buildings and equipment. This type of insurance covers costs associated with replacing the damaged items, repairing any damaged structures, and providing compensation for lost income due to business interruption. It also provides liability coverage for claims related to bodily injury or property damage that occur on the business premises.

When purchasing commercial property insurance in Florida, it is important to understand the different types of coverage and limits available. The most common policies provide coverage for buildings and equipment, general liability, workers' compensation, and umbrella liability protection. It’s also important to note that not all policies cover flood damage.

• Business Personal Property Coverage: This type of commercial insurance policy covers physical assets owned by the business, such as furniture and office equipment.
• Building or Structure Coverage: This coverage protects against losses caused by fire, windstorm, hail, lightning strikes, theft, vandalism, and explosions. It also covers any structural damage to the building due to accidents or natural disasters.
• Business Income Coverage: This policy protects if the business is forced to close due to damage or destruction caused by a covered loss. It covers lost income and pays for any additional operating expenses incurred while the business is closed.
• Equipment Breakdown Coverage: This type of coverage protects against losses from mechanical or electrical breakdowns, such as heating and cooling systems, elevators, and boilers.
• Valuable Papers and Records Coverage: This policy covers the replacement of documents that are destroyed or damaged in a covered event.
• Crime Coverage: Crime coverage protects from financial losses due to employee dishonesty, theft of money or securities, computer fraud, and forgery.
• Liability Coverage: Liability coverage protects the business from lawsuits resulting from bodily injury or property damage caused by the business’s operations.
  

In addition to the coverage, your policy may offer additional value-added benefits. For example, some policies may include:

1. Professional liability coverage:  Protects businesses from claims alleging negligence or error by an employee or contractor.
2. Contractor’s equipment coverage: Helps protect tools, machines, and other specialized equipment that contractors use.
3. Business interruption coverage: Reimburses lost profits due to an unforeseen event such as a natural disaster.
4. Rent reimbursement coverage: Helps cover the cost of renting an alternate space if the property is damaged and cannot be used.
5. Cyber liability coverage: Helps protect businesses from the costs associated with a data breach or cyber-attacks.
   

When purchasing commercial property insurance in Florida, there are a few other items to consider.

a) Deductibles

Deductibles are the portion of a loss you agree to pay out-of-pocket before the insurance company pays the rest of your claim. Limits of coverage refer to how much money the policy will cover in damages and related costs. Additional endorsements or riders may also be available for purchase, which can add extra protection for certain types of losses.

b) Exclusions

It’s also important to understand what your policy does not cover. Most policies exclude flooding or hurricane damage and make no provision for replacing lost income due to an extended power outage caused by a natural disaster. Discuss any potential exclusions with your agent before signing a policy.

c) Limits of Coverage 

Be sure to set limits appropriate for your business's size and scope. If you are underinsured, you could end up paying out-of-pocket if the value of your assets exceeds your coverage limit.

d) Additional Endorsements or Riders 

Additional endorsements or riders may be purchased, adding extra protection for certain losses. For example, you may be able to purchase additional liability coverage for claims related to libel, slander, or copyright infringement.

Florida commercial property insurance costs will vary based on the type and extent of coverage you need. The size of your business and the value of your assets will also play a role in determining the cost. On average, business property insurance costs between $500 and $2,000 annually. However, depending on the size and scope of your business, you could be paying as little as $250 or more than $10,000 a year for your coverage.

The best way to find out how much coverage you need and how much it will cost is to talk to a licensed Florida commercial property insurance agent. Agents can provide you with quotes from multiple carriers so that you can compare coverage and costs.

There are a few things you can do to lower the cost of your Florida commercial property insurance:

1. Increase Your Deductible: Increasing your deductible is one of the easiest ways to lower your premiums.
2. Bundle Policies: Bundling multiple policies such as general liability, worker's compensation, and commercial property insurance can save you money on your premiums.
3. Install Security Measures: Installing security measures such as burglar alarms and fire suppression systems can reduce the risk of a loss, which could result in lower premiums.
4. Update Your Building: Updating your building’s roof, plumbing, and electrical systems can reduce the risk of a covered loss, resulting in lower premiums.
5. Adopt Risk Management Practices: Developing and implementing risk management policies can reduce the chances of a covered loss, resulting in lower premiums.
6. Pay Your Premiums Annually: Paying your premiums annually instead of monthly can save you money by eliminating processing fees.
7. Shop Around: Compare quotes from multiple carriers to get the best rates on your coverage.

The most important step to lower insurance costs for your commercial property is to talk to a licensed commercial insurance agent who understands the Florida market and can help find the best coverage at the best price.

It depends on the type of claim and the details of your policy. Generally, your premiums will increase if you make a claim for an event covered by your policy. However, the increase may be limited based on the specifics of your policy, the type of claim, and in some cases the size of your deductible.

One of the best ways to ensure you are properly covered is to consult a licensed Florida commercial property insurance agent. Here are 10 ways an experienced agent can help:

• Find the most comprehensive coverage at the best rate: An independent commercial property agent working with multiple carriers can find you the most comprehensive coverage at the lowest rate.
• Provide detailed information: Agents are knowledgeable about commercial property insurance and can provide you with detailed information about the available policy and coverage options.
• Help identify potential exposures: With so many different types of coverage available, an agent can help you identify potential exposures that may not have occurred to you.
• Explain important terms: Agents can help explain important terms such as deductibles, exclusions, and endorsements so that you understand the implications of those concepts.
• Assist with filing claims: In the event of a claim, an agent can help you understand the process and make sure your claim is properly filed and processed.
• Advocate on your behalf: Agents can also provide an added layer of protection by advocating with the insurance company in case of a dispute.
• Provide ongoing support: As your needs evolve, an agent can provide ongoing support by helping you adjust your coverage, answer questions, and stay up-to-date on changes in the industry.
• Offer risk management advice: Discounts may be available if you take steps to reduce your risks, such as installing a sprinkler system or burglar alarms. An agent can advise on reducing your risks and taking advantage of discounts.

Ultimately, working with a knowledgeable and experienced commercial property insurance agent can help you get the right coverage at the best price so that when a disaster strikes, you can rest assured that you are properly covered.

In the event of a covered loss, most commercial property insurance policies will require you to follow certain steps to make a claim.

Here are the general steps to file a claim:

1. Notify your insurance company as soon as possible so that an adjuster can be sent to assess the damage.
2. Provide the insurance company with all the necessary documentation, such as receipts, photos, and other relevant information.
3. The insurance company will review the claim, determine coverage, and make a settlement offer based on the policy limits and coverage details.
4. You may negotiate with the insurance company if you feel the settlement is inadequate.
   

Bellken Insurance Group offers free commercial property insurance quotes from multiple carriers so that you can compare coverage and prices. Our experienced agents will work with you to select the best policy for your needs and budget. Contact us today to get started.