Articles

  • Functionally Valuing Older Business Property

    Businesses that have been successful for decades are usually ones that also consistently take care of their property. While maximizing the use of every asset, it also raises a coverage issue. Aging equipment may have reached the point where it:

  • Commercial Output Policy

    Many businesses protect themselves by purchasing a standard Commercial Property Policy which handles routine building and business property loss exposures. However, this type of coverage is not as useful to operations that involve the following:

    • heavy retail sales activity
    • active product transportation
    • above average processing/manufacturing, or
    • equipment installation and/or repair

    For such businesses, there is a coverage alternative, specifically the Commercial Output Policy (COP).

  • Vacancy Provision

    Under a commercial property policy, coverage is significantly different for buildings that are vacant for extended periods. Usually, certain types of coverage are completely eliminated during the vacancy. Insurance companies are interested in protecting ongoing businesses and premiums are based upon active occupancy. Continued, full coverage may be provided, but that is only at the insurance company’s discretion. If a vacant risk is accepted, it usually means paying more premium.

  • The Commercial Property Policy

    No matter the size or type of business, tangible property is a major asset. A national standard for insuring such property is the Insurance Services Office (ISO) Commercial Property Program (CPP). The CPP may be written as a single policy (covering only buildings and property) or as a package that provides property, liability and, other important protection for your business.

    The Parts of A CPP

    A Commercial Property Policy is flexible because it consists of several basic parts:

  • You Can Climb, But You Can’t Hide

    Tree houses are prime elements of childhood fun. They are clubhouses, hideaways, castles, war rooms, forts, spaceships, control centers, submarines; the list of what they can perform is limited only by imagination.

    Now let’s look at a tree house with an insurance company’s eyes….oh boy! Now we have a structure with a separate value that, just like a home, garage, shed, or pool; needs specific coverage. Worse, that coverage has to be for damage to the tree house as well as for protection against losses caused by owning a tree house.

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