Common Commercial Property Insurance Claims and How to Avoid Them

Commercial property insurance can be a vital safeguard for businesses, helping to mitigate financial losses from unexpected events. Understanding what this coverage may include and how to reduce the likelihood of claims can help businesses operate more confidently and efficiently.

What Can Commercial Property Insurance Cover?

Commercial property insurance, also known as business property insurance, may help financially protect various physical assets from many kinds of risks. Exact coverage can vary by policy, but it commonly includes the following incidents:

• Fire and smoke damage are among the most common claims and may be especially prevalent in manufacturing or restaurant settings.
• Water damage from burst pipes or roof leaks can be covered, although flood coverage may require a separate policy.
• Theft and vandalism claims may be particularly common for retail and warehouse operations.
• Storm damage claims may cover damage caused by wind, hail and lightning strikes.

How Can My Business Avoid Incidents and Limit Losses?

While insurance can help with recovery, the following proactive steps may reduce the likelihood of needing to file a claim:

• Conduct regular inspections. Check roofing, plumbing and electrical systems for wear or damage, and make sure fire extinguishers and alarms are functional and up to code.
• Implement strong security measures. Use surveillance cameras, alarm systems and secure locks. Additionally, train staff on theft prevention and emergency protocols.
• Maintain clear documentation. Keep records of property maintenance, upgrades and safety checks. Photograph assets and store receipts for major purchases.
• Prepare for weather events. Reinforce windows and doors when inclement weather is expected. Develop a storm response plan and train employees accordingly.
• Maintain the workplace. Commit to diligent maintenance and repair schedules to keep equipment in good condition and limit the risk of related accidents.

By understanding what commercial property insurance can cover and taking preventive measures, businesses may reduce risk and improve resilience against common disruptions.

We’re Here to Help

Contact JJ Insurance today to learn more about commercial property insurance and how it can address many common incidents.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.