Sometimes referred to as commercial building insurance, business building protection is purchased to protect your investment is a business property. Similar to homeowners insurance, lenders usually require business owners to get building coverage as part of a financing agreement. This is a very important component of a complete business property insurance plan, which also includes content and liability protection. Having your business property destroyed with no financial protection would mean financial ruin for many small business owners.Your business insurance has coverage that takes care of specific needs. If you own the building or if you are a tenant, it should be classified correctly. When reviewing your business insurance for your restaurant, bar, deli or bakery, specifying correctly your building coverage’s and your tenant in betterment makes a world of difference when it comes to a claim.

Changes, typically to restaurants, deli’s, bakeries or bars, to accommodate specific needs of a tenant. TIB’s include installation or relocation of interior walls or partitions, carpeting or other floor covering, shelves, windows, toilets, etc. These are fixtures that will permanently attached and can’t be removed. If the structure or building has been changed, added to or remodeled by the tenant, it is a tenant in betterment. These changes need to be rated correctly on your policy to make sure if there is a partial or total loss that there won’t be a gap in coverage. When a claim happens, and they do,  you don’t want to find about possible gaps in protection.

Some carriers will lump all this coverage together, but if your broker or agent isn’t aware of this, you could be paying too much for the same coverage. The rate for building coverage is more expensive than tenant in betterment protection. If this coverage is written incorrectly on your policy, it can cost you, the business owner up to 15% more for the same protection when written correctly.

If you have any questions or concerns dealing with this exposure, please email me.

Author Stratton

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