What’s the Difference Between Commercial Property and Commercial Equipment Coverage?

What’s the Difference Between Commercial Property and Commercial Equipment Coverage?
For many property owners, the need to carry insurance to protect their land and everything on it is a standard and vital need. Property owners should evaluate what needs to be protected and then re-evaluate on a regular basis to ensure overall integrity.

But the decision to protect everything from heavy equipment to the garages, per se, that house them can bring some confusion. Ultimately, it’s imperative for business owners to invest in the right coverage to protect what is theirs, and educating oneself in regards to finding the right policy or policies needs to be at the beginning.

When a transportation company fires up a new big rig, they reach for dependable truck insurance. So why shouldn’t a business that operates with machinery or houses such equipment find coverage? Let’s take a look at the different between commercial property insurance and commercial equipment insurance:

Commercial Property Coverage

Depending on your company’s location, you may not be required by law to obtain commercial property insurance. However, a business may be required to do so by their lender. Most business owners make a choice to purchase this kind of insurance policy because of the wide range of protection that it provides.

Property that is being leased can also be insured under this policy as well as property that is owned by somebody else. Commercial property coverage provides insurance for any number of buildings, finished additions,  and other business personal property that are part of a business operation.

Specifically, this coverage applies protection for various types of commercial property. You can equate this to coverage for buildings and personal property  in a business. What’s more, if a business suffers a loss, commercial property insurance can provide coverage for lost income and extra expenses. Make sure to assess everything that needs to be covered or have an insurance broker determine what and how much needs to be put under a personalized policy.

Commercial Equipment Coverage

Commercial equipment coverage is also referred to as contractor’s equipment coverage. This policy provides protection for various equipment and machinery from physical damage. This policy goes a step further beyond commercial property insurance by covering what is not designed to be protected under the policy above.

Consider this: Does your business use heavy equipment such as tractors, backhoes, and forklifts? Then this coverage is tailor-made to protect against damage of those items. More often than not a business’s assets are tied up in heavy equipment, making this kind of protection a high priority.

Most people think that a policy like this only refers to physical damages, but it also includes loss due to theft. Stolen heavy equipment numbers are on the rise and commercial businesses need to do what they can to protect against such loss. Depending on where you are at in the country, your heavy equipment may be at a higher risk of being damaged or stolen.

Be sure to work with an insurance broker to understand what your business needs in terms of coverage and what needs the most protection.

About Western Truck Insurance Services

Western Truck Insurance Services is much more than a commercial truck insurance agency. Since 1954, we have provided our clients with unparalleled service for truck insurance quotes, customer service, coverage charges, insurance certificates, and more. We are committed to providing our clients with the service to keep their costs to the minimum and their opportunities to the maximum. For more information about our products and services, give us a call at (800) 937-8785 to speak with one of our experts.