Commercial property policies are designed to pay for the repair or replacement of a company’s physical assets after unexpected losses (e.g., fire, windstorms, theft, and vandalism). These policies cover real property as well as other physical assets (e.g., furniture, computer equipment, supplies, fixtures, and inventory). Commercial property insurance does not cover damage to commercial property sustained while the property is in transit (i.e., equipment loaded on a truck and taken to a worksite), damage to customer property, employee theft, or malfunctioning business equipment. In addition, commercial property insurance policies often exclude losses sustained from natural disasters or power surges. Most commercial property insurance policies also provide business interruption coverage, which protects the insured against financial loss resulting from the interruption of its business operations following a covered loss.
Commercial property insurance coverage can be costly, and policyholders rightfully expect their claims to be paid fully and promptly. However, many commercial property policyholders may find their claims denied after a loss, whether due to an overlooked gap in coverage, a problem with tendering the claim, or other complications. The insurance coverage attorneys at Payne & Fears have decades of experience navigating the insurance claims process and are adept at negotiating with insurers. We know the ins and outs of commercial property policies and are tenacious in our advocacy for policyholder clients. We help clients confirm they have adequate coverage for their commercial properties and assist in preventing problems with claims before they are tendered. We strive to obtain swift and favorable results for policyholder clients. However, when insurance litigation becomes necessary, we can draw upon our years of institutional knowledge to help our clients.
Who Needs Commercial Property Policies?
Any enterprise with significant physical assets exposed to potential damage should consider maintaining property insurance. Whether businesses own or rent their workspace, they probably need a commercial property policy. Many landlords insist upon having proof of insurance before renting out their commercial properties because a building owner’s commercial property insurance does not extend to damages sustained to a tenant’s property stored inside a covered building.
What Kinds of Problems Occur When Making Commercial Property Policy Claims?
As with any insurance claim, the process is laden with landmines. Policyholders often struggle with insurance companies’ demands for information that can seem arbitrary and unnecessary. Insurance adjusters are overworked and may not be adequately trained in the nuances of coverage under the policy. Business interruption losses present unique accounting and forensic challenges. And even when the insurer acknowledges coverage, there may be significant disagreement about how to measure the loss. Knowing how to navigate these challenges can forestall many problems. The insurance coverage attorneys at Payne & Fears are skilled at representing commercial property insurance policyholders. We are familiar with the terms and conditions of different commercial property forms and can help businesses with procuring and renewing insurance policies and when disputes arise, we draw from our extensive experience to help with our client’s recovery.