Yes, you can insure the buildings you operate your business from very cheaply, if you wish. There are two ways to do this:
Jump on the first offer of cheap commercial buildings insurance you come across, promising extremely low premiums and huge payments in case of claims. Don’t bother reading the fine print listing the mile-long list of exceptions which effectively void any claim you might make, just go for it!
You will have your cheap commercial insurance – until the day comes when something goes wrong and you actually need the coverage. Well, it was good while it lasted, right?
The other way is not quite as easy, and may not be quite as cheap. It requires you to be aware of the risks involved with running your business, identifying any problems you have and acting to rectify them. The riskier an acquaintance you are to an insurance company, the more they will charge for giving you the coverage you need. In some cases, they won’t even touch you with a ten-foot pole. You should take that as a hint that you and your business have some serious work to do, if you want to survive in the future.
What should you look at especially, to reduce risk to buildings used in your business? Starting with your core-activities (what you actually do for a living), you can look at whether your facilities are even suited for the sort of work going on in them. Running a steel-foundry in an old wooden warehouse may work out fine for you, but your insurance agent will have a fit, the likes of which he will never recover from. Less extreme cases should be scrutinized equally diligently. How well are you prepared against the event of fire on your building? Does everyone know where the fire-fighting equipment is located? Or how to use it? What about chemicals? Anything worth taking a second look at there?
Of great importance also, is building maintenance and repair. Do you have a plan for maintaining your building – and are you following it? Neglecting to clean the gutters or fix roof leaks could cause serious deterioration of any building, greatly reducing its value and functionality. It would also matter some whether you could be said to be located in a high-risk area. Does your office sit right above the San Andreas fault-line? Better find someplace else – or make sure it is earthquake-proof. Don’t situate yourself with an office in a plastic shed in Tornado Alley either – unless you really, really have to, to make money. I am putting it bluntly here obviously, so take this advice with you to the – hopefully more normal – situation you and your business are in, and apply it. Turn yourself into the dream-candidate for cheap commercial insurance, and you will stand a very good chance of getting it.
By Alyssa Faber