Commercial property policies aren’t standardized in Texas. This means coverages and policy terms will vary by insurance company and by policy. If a policy doesn’t provide all the coverage you need, you can usually buy endorsements to add or increase coverage. Endorsements usually raise your premium.
The following are some typical commercial property coverages:
Building occupied by the insured – coverage insures a building that you regularly use but don’t own. This coverage can be important if you lease or borrow a building.
Newly acquired or constructed buildings – coverage insures a new building if you add it to your policy within a certain amount of time. If you don’t tell your insurance company within the time period — usually 30 days — your policy won’t cover the new building. Commercial property policies usually only cover buildings named in the policy.
Employees’ personal property – coverage insures your employees’ personal property if the property is on your premises. Generally, you must buy this coverage as an endorsement if you need more than a limited amount.
Off-premises property – coverage covers your property located off site. If a policy doesn’t cover off-premises property, or provides only limited coverage, you might need an endorsement or a separate policy to cover it.
Business interruption – coverage pays for the income you’d lose if your business is damaged and you can’t perform your normal business operations.
Extra expense – coverage pays any additional costs to return your business to normal after it’s damaged.
Valuable papers – coverage provides limited coverage for your business records and other valuable papers. You might be able to increase the coverage amount with an endorsement.
Ordinance or law – coverage pays additional costs to repair or rebuild a facility to current building codes after it’s damaged. Many policies provide limited ordinance coverage, but you can increase the coverage with an endorsement.
Boiler and machinery – coverage covers boilers, air conditioning units, compressors, steam cookers, electric water heaters, and similar machinery. Coverage is usually only for machinery listed in the policy and to losses caused by malfunctions of boilers or machinery, such as when a boiler explosion or water heater leak causes damage to other property. You can buy this coverage as an endorsement or a separate policy.
Inland marine – coverage insures goods in transit by land, air, or inland waterways. It also covers projects under construction and transportation and communications structures, such as bridges, tunnels, and communications towers.