Commercial Property Coverages

Property coverage provides first-party coverage on the insured's tangible assets from a variety of causes of loss. There are many forms and approaches starting with the general and moving to the specific. The range of options allows Towne Insurance advisors to work with you to develop the approach that is right for you.

Building
If you own or are contractually required to insure a commercial building, it is recommended you insure buildings 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.

When determining building coverage, consider the replacement cost of: 

• Completed additions
• Fixtures
• Permanently installed machinery and equipment
• Personal property that is used to service or maintain the building or premises

Business Personal Property
Business personal property insurance may cover property at a specified location such as: 

• Furniture
• Fixtures
• Equipment 
• Inventory
• Machinery
• Stock
• All other personal property owned by the insured and used for business
• Any improvements and betterments made by or acquired by the insured (when a tenant)
• Leased personal property the insured has a contractual responsibility for

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 extra expenses if you need to temporarily relocate your business, pay ordinary payroll, or advertise when you're open for business.  Towne Insurance strongly recommends that all businesses acquire this coverage.

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.

Equipment Breakdown or Boiler and Machinery
This coverage has four separate parts:

• Damage from an accident to the items covered
• Damage to the insured’s other property caused by an accident to the items covered
• Loss of income due to damage to the item and/or damage to the other insured property
• Damage to property of others and bodily injury to others caused by an accident to the items covered