Commercial Property Insurance in Vermont

What is commercial property insurance?

Purchasing commercial property of any type is a major investment, and that investment ought to be protected. Commercial property insurance can place a crucial role in protecting properties that are located in Vermont.

Commercial property insurance generally offers robust protections for business-owned properties. Most policies cover buildings, other structures, and items on the property.

What businesses in Vermont should be carrying business property insurance?

Any business that owns commercial real estate in Vermont probably should have business property insurance. Businesses that have major assets or extensive inventory may get the insurance, too.

Policies are readily available for commercial buildings, including multifamily, real estate, industrial, office, specialized and other buildings. Policies normally can also be purchased for raw land, and even equipment, tools, inventory, supplies and finished goods. In short, you should be able to find a policy for almost any type of property your business might own.

If no property policy is in place and something happens to a building (or other asset), the consequences could be financially devastating for a business.

What coverages are typically included in business property insurance?

Business property insurance usually encompasses several types of coverage, each of which offers distinct protection. Some common coverages include:

• Building Coverage: May offer protection for the primary building on a property, and potentially any secondary structures as well.
• Contents Coverage: May offer protection for items stored at the insured property. Could cover machinery, equipment, appliances, furniture, electronics, inventory, finished goods and more.
• Tenant Improvements Coverage: May offer protection for any build-out alterations or enhancements made by a tenant to their leased area. Sometimes called tenant betterment coverage.
• Exterior Signs Coverage: May offer protection for attached or detached signage that advertises the business or property. Signs might be covered under building coverage, or exterior signs coverage may be needed.

An insurance agent who specializes in business property can help make sure all of your business’s assets are properly protected.

Do business property policies include liability coverage?

Typically, liability coverage is not included in business property insurance. As each business faces unique liability risks, it’s more effective to address liability risks through separate liability policies such as general liability, professional liability or product liability insurance.

Do commercial property policies cover off-premises items?

Most commercial property policies are designed to cover property situated at the insured premises only. 

Some policies may offer limited coverage for off-premises items, but for businesses needing extensive protection for property in transit or located elsewhere, additional insurance coverages should be considered. 

Inland marine insurance or builders risk insurance might be relevant. The former normally covers goods being moved, and the latter might cover items at a worksite. Both coverages can likely be combined with commercial property in a package policy.

A knowledgeable insurance agent can help make sure that your business’s items are protected wherever they might be. 

Can a commercial property policy cover multiple properties?

Yes, commercial property policies can often be configured to cover multiple properties. This, too, is something a knowledgeable agent can help with.

How much does insuring a commercial property cost?

The cost of insuring a commercial property can vary significantly, and is influenced by several factors. The property’s location, size, usage, value and construction materials are just a few of the factors that impact policy premiums. 

To accurately determine the cost of insuring a specific property, business owners are encouraged to consult with an independent insurance agent who can gather quotes from various insurance companies.