Property insurance provides protection for insured perils against property damage.
Protecting the tangible assets of a business is relatively easy from an identification perspective. Building, stock, equipment, leaseholds and improvements, computers can be identified. When these property classes are insured on a broad form wording, Replacement cost basis, with a tolerable deductible level, the foundations of a good property insurance policy are in place.
It is important, as business acquisitions are fluid, that newly acquired assets are reported in a timely way. Also, and most critical, is proper valuation of assets. Securing limits that are 100% to value will avoid any coinsurance, which can be a policyholder’s unexpected and costly participation in a loss.
Commercial Property insurance covers physical damage to tangible assets only. Intellectual property such as copyrights, trade secrets, and patents fall outside scope of this policy.
*These coverage descriptions are for illustration purposes only. For full particulars, recourse must be made the actual policy wordings.
*Subject to policy wordings and exclusions