Coverage Selctions

• Commercial property insurance contains specific coverage sections such as for building, business personal property and personal property of others. Building coverage on a policy includes all buildings and structures that are on an insured's property. Business personal property consists of property within the building, such as furniture and equipment owned by the business. Personal property of others includes property of a customer that is in a business's care, custody and control.
  
  

Cause of Loss

• Losses that are covered by commercial insurance depend on what has been included within the language of the policy. Causes of loss must be specified perils included in the policy, such as fire, theft and vandalism. Other causes of loss are known as open or broad perils, which include any loss that has not been specifically excluded on the policy. The causes of loss that are typically excluded from commercial property insurance include floods, earthquakes and other "acts of God."
  
  

Valuation Types

• Commercial property policies usually include a section that explains how losses are calculated to determine how much the policy will pay for the loss. Most insurers use the Actual Cash Value (ACV) calculation, which is typically considered fair-market value. Other valuation methods include agreed value and replacement cost. The agreed value will pay a stated amount for a loss. Replacement cost will pay to replace damaged property with new property that is the same or similar.
  
  

Endorsements

• Commercial property policies contain basic coverages that can be expanded by using endorsements added to the policy. One type of endorsement that can be added on a policy is called builder's risk. This coverage is provided to cover a new building, a building being renovated or a building that is under construction. Another type of endorsement that can be added is a building ordinance or law. This coverage is available when the enforcement of laws results in a loss to an undamaged portion of a building, for example, a forced demolition.
  
  

Inland Marine

• Inland marine can be provided on a commercial property insurance policy. This insurance, an outgrowth of ocean marine insurance, also provides liability coverage for a business's property that is being transported overland. Inland marine insurance also covers property that becomes damaged while in the care, custody and control of the business during transportation. Inland marine has similar causes of loss that apply, including fire, theft and collision.