Property Coverages

Protecting the assets of a company is one of the primary functions of insurance. In this section we will examine the most common types of policies and coverages a business carries to protect its property.

Commercial Property (including earthquake, flood, and wind exposures)

Commercial property insurance protects the physical assets of a business from covered causes of loss. Physical assets of a business include buildings (and fixtures), business personal property such as inventory, raw materials, equipment, furniture, computers, and cash.

Business Income and Extra Expense

Business income and extra expense reimburses a business for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. It can also cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises.

Equipment Breakdown / Boiler and Machinery

Equipment breakdown insurance covers boilers, air conditioning, heating, electrical, telephone, and computer systems from mechanical breakdown, artificially generated electric current, explosion of steam equipment, loss or damage to steam equipment, and loss or damage to water heating equipment.

Inland Marine / Cargo Insurance

This broad type of coverage was developed for shipments that do not involve ocean transport. Covers articles in transit by all forms of land and air transportation as well as bridges, tunnels and other means of transportation and communication. Floaters that cover scheduled items such as tools and construction equipment are also included in this category.

Builders Risk

Builders risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction. Builders risk insurance is coverage that protects a person’s or organization’s insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.