Home > Commercial Insurance This type of insurance protects these types of businesses: Retail, Wholesale, Industry, Service, Home Based, Professional, Office Building, Rental Property, Trade Contractor, Church, and other businesses. Structure of Commercial Insurance The coverage acts to protect in several different ways: Propery Damage - Comes in Basic, Broad, and Special forms. This coverage serves to replace or repair any damage to commercial property due to perils such as crime, storm, theft, destruction and vandalism, fire, forgery, and other risks. Includes buildings, property, and associated structures. Liability - This serves to offer financial protection in the event that the business is the subject of a lawsuit or legal action. Loss of Income / Business Interruption - Compensates a business when it is unable to operate by replacing the income that would normally have been gained during the downtime. This lost income may be determined through the examination of financial records which indicate past profit trends. Contents of Buildings and Employee Personal Property - Covers all building contents and personal property of the employees who work there. Business Auto - This is normally offered as an option to standard commercial insurance and covers cars, pickups, vans, and SUVs operated by the business. This works in the same manner that individual auto insurance protects against property damage and liability. Also insurable in this way are tractor trailers, flat beds, dumptrucks, and other heavy commercial vehicles. The Determination of Commercial Insurance Rates The potential risks are taken into consideration when insurance premium rates are being determined for a business. Probably the most important factor in this price determination is the fire risk of a commercial establishment. A complex formula called a fire rating is used to expose the risk, with many factors such as the presence of fire hazards and the organization of the structure playing a role in the establishment of premium rates. A state licensed fire inspector performs the actual inspection of a commercial property during times of insurance underwriting, and is normally hired by an insurance company to do this. The main criteria used in an inspection are: Fire Protection Measures - Sprinklers, extinguishers, fire alarms, fire hydrants, etc. Location - Either in a city with good fire protection, or in a rural area with less fire protection. Building Use / Contents - The relative risk due to the nature of use plays an important determining factor. Building Materials - The construction materials can be specified as either combustible or fire-resistant. Exposure - External / Internal risks such as closely located external hazards and internal hazards such as clutter and disorganization. Commercial Multi Peril Policies - CMPs These policies combine multiple coverage areas like liability, property, commercial auto, and crime, in order to conveniently maintain a single insurance policy for a business. Commercial Liability Umbrella Policies These policies offer an increased level of protection in the event that a business sustains a lawsuit or civil court judgement. Policies are normally available for amounts exceeding one million dollars.