How Does Commercial Property Insurance Work?

If you own a business, you most likely have commercial property damage insurance. However, if your business has been damaged, you may find that your insurance company is trying to deny you the compensation you need. Here are some of the questions you may have about commercial property insurance:

What does commercial property insurance do?

Commercial property insurance is designed to help your business recover from damages. However, insurance policies will very often contain vague, nondescript language so that they can get out of making payouts when necessary. Your insurance policy may deal with the following:

  • An extended period of protection against damages
  • Loss of ingress or egress
  • Extra expenses
  • Physical property damage
  • Business interruptions
  • Interim payroll coverage
  • Loss of rents

What types of damages can commercial property insurance cover?

  • Theft/Vandalism: This is one of the most insulting and infuriating scenarios for a business owner. If your business was vandalized or robbed, you must have documentation of all valuable items that were stolen or defaced to prove they existed and were in your possession before they were stolen. Additionally, you must always be aware of the coverage limit to ensure your policy covers the value of your business’ property.
  • Fire: Fire damages can be tricky. For example, if your property is completely destroyed, the insurance companies may dispute the cause of the fire by accusing you of setting the fire for insurance money. Though this is completely unfair, insurance companies will oftentimes do whatever it takes to withhold the compensation you need. However, if your property has partial losses, the origin of the fire must be thoroughly examined.
  • Wind/Storms: Very often, water damage is not covered. However, if your property has been damaged by wind-driven rain or water through intrusion i.e. a broken window or a damaged roof/siding, you may receive insurance benefits.
  • Water/Flood: Some commercial property owners have to purchase additional flood insurance, while others do not. However, generally, water/flood insurance is not standard.
    What is business interruption coverage?

Your insurance policy may offer coverage if your company had to temporarily close down to recover from the damages sustained. However, to qualify, your business will have to meet certain requirements. They are as follows:

  • The “peril” must have interrupted your business
  • The loss must be directly caused by the shutdown
  • There has to be physical damage to the property
  • The property must be where the business takes place
  • The damage must be covered under “peril”

Contact our experienced New York firm

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered a property loss due to a fire, a flood, a severe storm or a robbery, please do not hesitate to contact our firm to schedule a free initial consultation. A knowledgeable attorney on your side in your time of need can make all the difference.