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Commercial Property Damage

Commercial property is used for business purposes like offices, bars and restaurants, strip malls, restaurants, service stations, convenience stores, shopping malls, warehouses, hotels, farms, ranches, industrial, bowling alleys, movie theatres, car dealerships, and many more.  Commercial property insurance indemnifies policyholders for covered events like theft, fire, explosions, water-loss, vandalism, hurricanes, sinkhole activity, hailstorms, etc.

What type of Damage is Covered by my Commercial Property Insurance?

Commercial property policies generally cover the building, its contents, and exterior fixtures associated with the business such as signage and/or a fence. Contents, also known as business personal property, generally includes furniture, computers, business equipment, essential documents and records, and any inventory stored on the property. 


Although not a part of your basic Commercial Policy, many business owners purchase additional insurance coverage in the form of an endorsement. An endorsement is a change to your insurance policy that adjusts your coverage. With respect to commercial insurance policies, endorsements have specific application to the particular type of business being insured.  There are multitudes of endorsements available to commercial property owners.  Be sure to speak to your insurance agent or broker about what endorsements are available to you that may help protect your business.  

Here are a couple examples:    

Equipment Breakdown Coverage

In a typical Equipment Breakdown endorsement, the insurer promises to provide coverage for direct physical damage to covered property that is the direct result of an accident or electronic circuitry impairment.  One of the most valuable coverages in this endorsement relates to data restoration. The insurer promises to pay for the reasonable and necessary cost to research, replace and restore lost electronic data.  

Imagine after your business is damaged you discover that the computer system is inoperable.  Some, or all, of the stored data is inaccessible, corrupted, or irretrievably lost forever.  The cost of researching, replacing, and/or restoring the computer system and data can be significant.  Some commercial policy endorsements even cover off-premises equipment. Of course, the language in every policy is different, but you can easily see why a relatively small investment in such an endorsement could be beneficial to your business. 

Spoilage Endorsement

Picture a convenience store, restaurant, or grocery store that has been forced to close its doors because of a water pipe break, a hurricane, or a fire.  In addition to the damages to the building itself, more likely than not the inventory is damaged.  Business owners who engage with the general public in food and beverage sales generally have a considerable amount of money invested in their inventory. If the refrigeration system is inoperable for any period of time, it is inevitable that all the damaged inventory will have to be discarded for safety reasons.  A spoilage endorsement is offered to indemnify commercial policyholders for physical damage to perishable goods, as well as any necessary expenses incurred in order to reduce the amount of loss. 

Contact our Commercial Property Damage Attorneys Today 

Commercial insurance policies tend to be complex and full of exceptions and exclusions to coverage. Kubiak Law Group understands the law, your insurance policy, and the rules and regulations pertaining to commercial property damage cases.  We have the experience, knowledge, and resources required to fight insurance companies to protect your rights. 

We offer free consultations, the same day return of calls and emails, and 24/7/365 availability. Contact us today to schedule a free, no-obligation consultation and learn how we can help with your insurance claim.