Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/536709
Commercial Investment Real Estate IS SUE S BUSINE S S a by Mary Stark-Hood, JD, CFP Property Casualty Insurance As a business owner, you know the importance of protecting your business from fi nancial loss. Some risks may be acceptable, but many are not. Insurance to cover those risks is a business expense worth considering. JGI/Glow Images You want to be assured that you have coverage for your current exposures. You may have moved to a larger location, added employees, or expanded business lines that are not insured under your existing policies. Property casualty insurance can be pur- chased as monoline policies that cover a single line of insurance or package policies that combine several types of coverage into one policy form. Package policies or business owner's policies bundle property and liability coverage into one policy. T ey also can be tailored to f t the specif c needs of a business owner and industry. Coverage Types Whether you are thinking of buying mul- tiple monoline policies or a package policy, consider the following lines of insurance. Property. Protecting against fire, theft, and other perils, property insurance should cover your place of business at the level needed to replace or rebuild the property. T ere are many types and levels of coverage along with limitations or exclusions. Consulting with an independent insurance professional may be of value, particularly when determining replace- ment cost, actual cash value, agreed amount, and functional replacement cost. Casualty. T is is liability insurance that protects your assets in case you or your employees are negligent and cause bodily injury or property damage to someone else. It covers the cost of lawsuits from accidents on your property that cause bodily injury and claims involving libel, slander, and false advertising. Most policies pay the cost of damages and your defense, which includes attorney fees and other expenses. Also con- sider an excess or umbrella policy that pro- vides limits of liability above the limits in your primary policy. Business interruption. This insurance covers lost business income during the time your business is not operational. T is means net income (net prof t or loss before income taxes) that would have been earned. It also covers normal operating expenses incurred such as taxes, utilities, and payroll. Commercial auto. You should carry this coverage for any vehicle owned by your busi- ness. You also may need non-owned automo- bile coverage if you or your employees use personal vehicles on company business. A non-owned automobile policy will cover the business's liability for any claims that may result from such usage. Workers compensation. The require- ments for workers compensation are dictated by state law and cover workers against job- related accidents or diseases. It pays medical bills, disability income benef ts, and death 10 July | August | 2015