Insights 101 | How much is commercial insurance for a business building?
Price matters. This is why we are often asked about the specific costs associated with the many commercial insurance products and services we offer. In fact, “How much is Commercial insurance for a business building?” is a common question that our expert commercial insurance brokers are frequently asked. And this is why we’ve written this useful article.
You might currently have commercial insurance for your business building. Or you may be looking for the best commercial insurance for a business building. Or perhaps you are considering buying a business building and would just like understand the cost of insuring it. As commercial insurance experts, ALIGNED insurance brokers are happy to help!
Our ALIGNED insurance brokers help clients across Canada with commercial insurance for a business building. Our insurance brokers in Vancouver, Calgary, and Toronto are supported by our National Operations headquarters in Cambridge, Ontario.
Regardless of the size and occupancy of your business building, ALIGNED can help you secure multiple commercial insurance quotes. We work with more than 65 of Canada’s top insurance companies and are completely independent insurance brokers who represent you and your business.
Want a FREE commercial insurance quote for your business building in Canada? Use our form to get started now.
Commercial Insurance For A Business Building Explained
To determine how much is commercial insurance for a business building in Canada is needed, a number of things need to be considered.
Types of commercial insurance for a business building:
There are 3 primary and individual business insurance products that make up commercial insurance for business building which are:
- Commercial property insurance which pays to repair or replace property that was damaged or destroyed by perils like fire, flood etc.
- Commercial general liability insurance which primarily is slip and fall insurance is designed to cover the building owner from allegations of negligence resulting in injury.
- Machinery breakdown insurance which is a specialized insurance coverage which effectively provides HVAC insurance and electronic equipment insurance for a unique set of perils like electrical arcing, power surges etc.
Each of the above commercial insurance products for a business building are priced separately and on different parameters which are further explained below.
How these insurance products are priced
Commercial property insurance pricing and machinery breakdown pricing are primarily based on the total insured value of the commercial property being insured. This includes everything from the building to the improvements and betterment’s to contents. The amount of rental income is also a considerable pricing factor for commercial property insurance if building business owner chooses to insure it.
Meanwhile, commercial general liability insurance is priced primarily on the revenue generated by the business operations, but factors such as number of locations, type of business building (i.e. strip mall vs. multi-storey) are also relevant.
In depth | Understanding Canadian property insurance terms and coverage options
Providing relevant insights is just one of the ways we deliver a different experience to our clients across the country. Below, please find excerpts from three of our informative Business Insurance Products webpages that we’ve created about specific risks associated with business buildings.
ONE | Property Insurance 101: Replacement Cost Value vs. Actual Cost Value
A typical property insurance policy will provide the replacement cost value for your building and the actual cash value for your business property. Here’s what these terms mean:
- Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation.
- Actual cost value is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.
The coinsurance clause requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. Keep reading about property insurance.
TWO | Why is general liability insurance so important?
Commercial General Liability Insurance (CGL) protects against liability claims for bodily injury and property damage related to your premises, operations, products, completed operations as well as advertising and personal injury liability. A few examples:
- A customer slips in your retail store and breaks their hip.
- A contractor accidentally damages the building next to the one they are working on.
- A plumber installs a new toilet that leaks and damages the contents of the room below.
- Keep reading about general liability insurance.
THREE | What is boiler and machinery insurance?
The International Risk Management Institute (IRMI) notes that an object is
“a boiler and machinery (BM) insurance term for equipment or machinery. BM coverage applies to losses or damages resulting from an accident (such as a breakdown or explosion) to a covered object.” 1ALIGNED Insurance: Equipment Breakdown Insurance: Boiler and Machinery
There are several examples of an object that could be covered under a boiler and machinery or equipment/machinery breakdown insurance policy. Some objects include a roof top HVAC unit, manufacturing equipment, a pressure vessel or the actual boiler itself. Keep reading about boiler and machinery insurance.
ALIGNED brokers understand the nuances of commercial insurance coverages and can help you make informed decisions about your business insurance options. Bookmark our insurance info blog to keep current with Canadian insurance insights.
Let’s talk about commercial insurance for your business building
We understand that price matters when you are looking for commercial insurance for a business property. Our ALIGNED Insurance brokers know the marketplace and can find the best options, value and price for your commercial property insurance. We are here to help you get the business building coverage that best aligns with your specific needs.
Need commercial property insurance? Get a FREE quote started now.
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