4 Factors to Consider Before Buying Commercial Insurance
Key Elements to Consider When Buying Commercial Insurance
A reliable insurance policy can save your Swannanoa, NC, business if a fire ever causes damage to it. Before you invest in insurance, however, it’s crucial to ensure that you know exactly what to expect from your policy. Here are some of the key elements that you should consider when you make the decision to buy commercial insurance.
1. Location of Your Business
The area in which your business is located is a big determining factor in how much your insurance will cost. In many cases, the size of the city or town is directly related to its level of fire protection. Buildings in bigger towns and cities tend to have better fire protection and therefore require business owners to pay less for insurance. Smaller areas may lead to higher insurance costs due to poorer protection.
The cost of insurance is also determined by the building’s level of safety. A high number of hazards in a building usually translates to higher insurance costs. These higher rates are primarily due to the overall fire rating of the business. A low rating indicates inadequate protection, which means business owners will be charged more for commercial insurance.
The structure of a commercial building also plays a significant role in its fire rating. The way in which the building was constructed determines how vulnerable it is to a fire and the resulting damage. Relevant aspects of a building’s structure include:
- Materials (combustible vs. fire-resistant)
- Recent additions/remodeling
- Interior elements (e.g. wood floors)
The aspects of a building’s structure contribute to its overall safety and are therefore considered by insurance companies.
4. Availability of Fire Equipment
Making all of the fire equipment in your business easily accessible is crucial to the safety of your building and employees. Be sure that your fire alarms, fire extinguishers and sprinklers are up-to-date and functioning properly. It’s also vital to have an emergency plan in place that everyone in your business is familiar with.
Having commercial insurance is only the first step towards protecting your business. If you’re facing any kind of fire damage, don’t hesitate to call an emergency restoration company for help.