There are a number of different types of insurance policies that you may or may not need, but it never hurts to secure your commercial property and all the time and money you’ve invested in it.
We’ll break down the most common types of insurance policies for your CRE properties and which is best suited for your property type with a little help from our friends over at Insurance Noodle and Free Advice Legal.
Property Insurance:
- Property insurance covers your building and its contents from fire, theft, flood, and other natural disasters. This type of insurance is a given for all property types, whether you’ve invested in a multi-family property or an industrial property.
- Commercial property insurance rates can vary by state and property size/value, among a number of other factors. But according to a survey conducted by InsuranceTrak Services in 2015, found that on average rates were around $742 a year.
Liability Insurance:
- Liability insurance covers bodily injury and property damage sustained by third parties. This type of insurance in general protects you and your business from third party lawsuits regarding negligence.
- You would want to purchase liability insurance if your commercial property frequents customers, a restaurant or retail store for instance.
- Liability insurance rates again vary by state, but also vary depending on annual sales/payroll, number of employees, property size, etc, According to CostOwl, on average liability insurance policies run around $300-$1,300 a year depending on the policy amount.
Workers’ Compensation Insurance:
- Workers’ compensation insurance in most cases is a state-mandated type of insurance. This type protects you the employer from any costs associated from an employee’s work related injuries, sickness, medical builds, etc.
- If your property employs individuals to run everyday business, you’ll more likely than not be required by your state to purchase workers’ compensation insurance.
- According to Insureon, on average, workers’ compensation insurance rates run around $0.75 – $2.74 per $100 in employee wages.