Business Property Insurance
Most small companies own more than they think. Business property insurance pays to repair or replace the physical things your company depends on after a fire, a theft, or a burst pipe. Viva Insurance Services writes business property insurance for shops, offices, salons, and light industrial tenants in Schaumburg, IL.
What the Policy Covers
A property policy divides your assets into categories, and each one gets its own limit on the declarations page.
The building itself is covered when you own it. Owners of a small commercial building insure the structure, the roof, the plumbing, and the permanent fixtures inside.
Business personal property covers everything that is not the building. Desks, computers, tools, kitchen equipment, salon chairs, display racks, and stock all fall here.
Inventory gets special attention when the value swings through the year. A retailer heading into the holiday season should tell the agent, because a limit set in March may be short in November.
Tenant improvements cover what you paid to build out a leased space. New flooring, a partition wall, a hood system, and custom lighting belong to the landlord once installed. Your lease usually makes you responsible for insuring them.
Coverage for a Leased Space
Most small businesses in this area lease. The landlord insures the shell of the building, and the tenant insures everything inside it.
Read the insurance clause in your lease before you buy. Commercial leases here name three requirements: a stated property limit, a waiver of subrogation, and the landlord added as an additional insured.
Ask the landlord which parts of the space they insure. Gaps show up around HVAC units, storefront glass, and signage, and the answer differs from one lease to the next.
How Losses Get Paid
Two settlement methods appear on property policies. Replacement cost pays what a new item of like kind costs today. The depreciated value method subtracts wear and age from the payment, which produces a smaller check on older equipment.
Replacement cost is worth the premium difference on kitchen equipment, computers, machinery, and salon fixtures. Ask the agent which method your quote uses before you compare prices.
Business income coverage belongs in this conversation as well. A property claim that closes your doors for a month costs you rent and payroll on top of the repairs.
Most Owners Should Price a Package Instead
Standalone property coverage fits a company with an unusual risk or a high value schedule. It also fits a tenant whose landlord demands terms the packaged form will not write.
Everyone else does better with a business owners policy. The package puts property coverage and liability coverage on one contract, one renewal date, and usually one lower premium.
Viva quotes both ways and shows you the two numbers. The application is the same either way, so the comparison costs you nothing.
Business Property Insurance in Schaumburg, IL
Viva Insurance Services is an independent agency at 1901 North Roselle Road, Suite 800, north of the Interstate 90 interchange. The office is open Monday through Friday from 10 AM to 7 PM, and Saturday from 10 AM to 3 PM.
Bring a list of your equipment with rough values, your square footage, your lease, and the year the building was built. Those four items produce a usable quote on the first visit.
Call (847) 238-3861 or get a free quote for business property insurance. The full commercial lineup appears on the business insurance page.
Frequently Asked Questions
Does my landlord’s insurance cover my equipment?
No. The landlord insures the building shell. Your equipment, inventory, signage, and build out are your responsibility under almost every commercial lease.
Is flood damage covered by a business property policy?
No. Flood is excluded and needs a separate policy. Sewer and drain backup is available as an endorsement on many forms.
How do I value my inventory for the application?
Use your highest expected value during the year, not your average. Carriers can add a peak season endorsement for retailers.
Should I buy property coverage on its own or in a package?
Most small businesses save money with a business owners policy. A standalone property policy fits companies with high value schedules or unusual risks.