How Will My Building Be Valued by Commercial Property Insurance?
There are three types of property valuations that are used in commercial property insurance:
• Replacement Cost
• Actual Cash Value
• Functional Replacement Cost
Why Do I Need Commercial Property Insurance?
Commercial property insurance is one aspect of a business’s insurance program and can help get a business back up and running if it suffers a loss, such as a fire, tornado, or even a power outage.
While you may not enjoy paying the bills for it, it’s much better to pay those bills now and know that your business can survive a major loss. Without insurance, your building and all of your business’s contents and equipment would be completely lost with no source of money to rebuy them.
Some of the most common consequences of not carrying commercial property insurance include:
• Bankruptcy & closure
• A ruined reputation
• Legal trouble
• Spoiled inventory