Florida comm property insurance provides specific coverage against losses in 3 types of forms, Basic, Broad, and Special forms.
All the policies unless excluded, protect against common type of perils which include fire, windstorms, lightning storms, or damage caused by vehicles and civil unrest.
Basic form policies usually cover these common types of perils.
Broad form policies usually cover the common perils in addition to water damage, structural collapse, sprinkler leakage, and damage caused by ice, sleet, or weight of snow.
Special form policies cover all types of perils except those the policy specifically excludes. Common exclusions include damages from flood, earth movement, war, terrorism, nuclear disaster, wear and tear, and insects and vermin infestation.
You need to read and choose your policy carefully to make sure you have all the adequate protection in case of a loss. You may need to buy additional coverage’s or specialized policies such as flood, windstorm, or crime coverage to have full property protection.
Commercial Property coverage can also be provided through a stand-alone (monoline) policy or written as part of a package policy providing the various types of coverage. The most common package policies providing commercial property coverage are the Commercial Package Policy (CPP) and the Business-Owners Policy (BOP) which includes liability coverage.
Other additional important type of coverage’s that can be added to a commercial policy are Business Interruption coverage, which pays for the income you'd lose if your business is damaged and you can't perform your normal business operations. And extra expense coverage pays any additional costs to return your business to normal after it's damaged. Also Rent Loss will cover a landlords rental income for a certain amount of time when a property is uninhabitable.
Some of the factors which determine the amount of premium charged include the properties Construction Materials, building Age, Location & Exposure, Buildings Use, Fire Protection Measures, Property size or units, Gross Income, and past amount of losses.^Top/Close
Liability insurance, also called Commercial General Liability (CGL), covers these categories of events for which you could be held responsible: Bodily injury; physical damage to a person other than an employee at your place of business and injuries caused by you or an employee at a client’s home or work place. Personal injury, including slander and libel, copyright infringement, invasion of property or privacy, wrongful eviction, false arrest and similar acts that cause damage to a person’s reputation or rights. Advertising injury from false or misleading Advertising. Also Property Damage when damage is caused by you or an employee to someone else’s property. And Legal Defense and Judgments; costs to defend against real and frivolous suits and judgments up to the limit of your coverage. Note this generally does not include punitive damages for negligence or willful misconduct. CGL coverage pays for the injured party’s medical expenses. It excludes your employees, who are covered by workers’ compensation.
Bear in mind that even trespassers can sue you if they fall and get hurt on your business premises.
There are three types of legal damages people may sue you for that are typically covered by a CGL policy: Compensatory damages: financial losses suffered by the injured party and future losses they may suffer resulting from an injury they claim in the lawsuit. General damages: non-monetary losses suffered by the injured party, such as pain and suffering or mental anguish. Punitive damages: additional penalties and charges the defendant must pay.
Liability does not protect you from claims from sexual harassment, wrongful termination of employees, failure to employ or promote, or race and gender lawsuits.
Claims related to operating an automobile or truck. If you own vehicles for your business.
Professional Liability insurance, or Errors and Omissions insurance. Is coverage for wrongful practices by professional service providers like realtors, lawyers, doctors, etc.
Liability insurance premiums are rated on a business sales and payroll estimates provided prior to policy inception. Also by the type of business it needs to cover and the amount of past claims. .
Liability policies have two important factors to understand when purchasing a policy. A Claims Made policy will provide coverage from claims from the retroactive date. Which means that if a loss occurred before the policies effective date started but the policy retroactive date was not requested with an earlier date before the effective date to cover any possible claims, then no claim will be paid. An occurrence policy is the more common type issued. This simply means it will only cover claims during the policy period regardless when claims are made. And must be reported before the policy expires.
Other important optional coverage’s to add-on to a CGL policy are Liquor Liability, for those who either sell, distribute, serve, or furnish alcoholic beverages in their business.
Hired Auto and Non-owned Auto coverage can either supplement or replace a car rental agency's liability only coverage. It protects only your company, not the employee driving the rented vehicle.
The employee is still personally liable for any injuries or property damage to third parties.
And Non-Owned Auto coverage protects your company should it be sued due to an auto accident while one of your employees is on company business in a personal vehicle.
Terrorism Risk and Insurance Rider or TRIA, will provide additional protection from the threat of terrorist attacks which could be catatrophic.
Flood insurance policies cover physical damage to your property and possessions from the risk of water damage caused by storms, sewer backups, and broken water mains.
Coverage for Flood Insurance in Florida is mainly afforded through FEMA, as they seem to be the only insurer willing to take Flood risks.
If your property or business is in a High Flood area which is typically in areas other than “X”, then you need to obtain a Flood Elevation Certificate. This can be found from either the previous owner or association and if it’s not available surveyors or building inspection companies can provide this service for a low cost to create a new certificate.
The rate is mainly determined by the Base Flood elevation compared to the difference of the properties lowest floor. Older properties may have a higher rate as past building codes required lower levels for structure to be erected upon.
Here is what a Flood policy can cover.
For Building Property
The insured building and its foundation
Electrical and plumbing systems
Central air conditioning equipment, furnaces, and water heaters
Refrigerators, cooking stoves, and built-in appliances such as dishwashers
Permanently installed carpeting over unfinished flooring
installed paneling, wallboard, bookcases, and cabinets
Detached garages (up to 10 percent of Building Property coverage) Detached buildings (other than garages) require a separate Building Property policy
Personal Contents Property
Personal belongings, such as clothing, furniture, and electronic equipment
Portable and window air conditioners
Portable microwave ovens and portable dishwashers
Carpets that are not included in building coverage
Clothing washers and dryers
Food freezers and the food in them
Certain valuable items such as original artwork and furs (up to $2,500)
What's Not Covered:
Damage caused by moisture, mildew, or mold that could have been avoided by the property owner
Currency, precious metals, and valuable papers such as stock certificates
Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
Living expenses such as temporary housing
Financial losses caused by business interruption or loss of use of insured property
Most self-propelled vehicles such as cars, including their parts
After you receive a quote, 2 recent picture of the building are required.
1- is the entire fron view of the building
2-the entire view of the back of the building
Premium payments can be paid by credit card or check.
If the property is not a new purchase or being required by the lender, than there will be a 30-day waiting period before coverage begins.