Understanding the Basics
Commercial property coverage consists of building, business personal property, and property of others coverage.
This provides coverage for the building/facility, you owned or leased. Building coverage also includes separate structure, additions, fixtures, permanently installed equipment, and property used to maintain the building.
Business Personal Property
Personal properties including furniture, machinery, beds, computers, or any leased contractual personal property located in the building or structure listed on the declaration pages used in your business operations.
Property of Others
Property of others includes the personal properties’ of your residents or clients that you are in care, custody, control that are located in the building, or structure listed on the declaration pages.
Crime Coverage (Optional)
This coverage provides a loss from an employee’s dishonesty, computer fraud transfer, robbery, burglary, forgery, embezzlement or theft from an outside party. Crime definition and coverage limits can vary from one insurance carrier to another depending on what is provided and what you have selected. Crime coverage usually does not include criminal acts by your or your business partners, accounting errors on your, and other exclusions.
Additional Coverage on Building
In a care facility, the following coverages are important for your building. Make sure to review the policy definitions and limits on your policy to verify the coverage:
- Emergency Vacating Expenses
- Ordinance and Law on Building
- Debris Removal
- Preservation of Property
- Fire department Service Charge
- Pollutant Clean-up and Removal
- Electronic Data
Business Income and Extra Expenses
Care Facilities generate their revenues from payments of residents or consumers. When a building that is occupying the residents or consumers is damaged or destroyed, the residents or consumers will be released, removed or relocated by the request of licensing. Depending on the arrangement, your facility may lose that revenue immediately, thus suffer a major financial setback. To protect this loss of revenue, insurance carriers have created “Business Income and Extra Expenses” coverage.