Commercial Property Insurance in San Diego

With more than 5 decades of California market presence and countless policies issued, H&M is recognized as one of as San Diego’s insurance companies for commercial property. We are authorized to sell products from major national carriers like Travelers, Progressive, Hartford, and Safeco. This gives us an opportunity to shop around for the most suitable policy for your business at competitive price.

Common Risks & Perils

Commercial property insurance protects you against specific events, also referred to as risks or perils. They denote the possibilities of loss, while perils also have a connotation of imminent danger. It’s important to remember that even small losses can be very pricey to replace and can impact your business operations. In addition, covered losses differ depending on the provider.

In order to avoid financial hardships, make sure you invest into your coverage wisely. Below you can find several common perils that are typically included in majority of commercial property insurance packages.

• Fire – Its’ a known fact that fire poses greatest risk. Please note that damage caused by intentionally set fires (such as fireplace) are not covered.
• Burst pipes – Damage caused by sudden and accidental water pipe burst.
• Windstorm & hail – Natural disasters such as tornadoes, hurricanes, storm, and cyclones.
• Lightning – Damages caused by atmospheric discharges or lightning bolts.
• Vandalism – Intentional and malicious destruction or damage of business property.
• Aircraft & vehicle perils – Loses caused by accidents involving vehicles, spacecrafts, aircrafts, or self-propelled missiles.
• Explosion – Combustion or furnace explosions caused by sudden gas or fuel ignition.
• Malfunctioning equipment – Complete or partial failure of equipment caused by sudden mechanical breakdown, electrical failure, or steam explosion.
• Falling trees – Damages caused by trees that have fallen due to weather conditions or accidents.

Additional Coverages For Commercial Space

Commercial property is critical for any entrepreneur who runs a business from a building. But, as with other types of policies, there is no one-size-fits-all plan. You have to work with an agent who will assess your circumstances and recommend the best package for you.

Depending on your business, a basic policy may be enough to cover all your needs, although basic policies do differ among different insurance suppliers. As an independent agency, Herriott & Mijailovic will use its expertise to help you establish which coverage is most suitable for you.

Apart from elementary coverages, you could also add extra plans, such as:

How Much Commercial Property Insurance in California Cost?

If you’re worried about the cost of this insurance, don’t be. Our agents shop around for the best price with multiple suppliers and finally present you with offers that are scalable so you can pick the suitable one and be in control of the costs.

The cost of policy is based on many different factors such as:

• Coverage limits and deductibles – Higher deductibles reduce the premium, but don’t forget to choose a deductible you are comfortable with.
• Business size & number of employees – The more real estate and assets you have, the higher the premium will be.
• Claims history – Your claims history will also affect the amount you have to pay annually.
• Location – The location of your commercial property determines the price, too. For instance, some neighborhoods are considered riskier than others. Real estate value could also affect the cost.
• Industry & risk factors – Higher risk industries (construction, real estate, sports & fitness) tend to have higher premiums. If you are working with toxic materials, or perform dangerous activities like mining, you can also expect higher prices.
• Protection from fire – If you have easy access to fire hydrants and a fire station, your insurance will cost you less.
• Building and equipment age – If the building and equipment is older, it will cost more to insure them.

Frequently Asked Questions

1.      Do I need to purchase commercial property insurance even if I don’t own the property?

Even if you do not own commercial real estate you should still purchase this coverage as an added layer of protection. Plus, many landlords may require you to have this coverage, so make sure you check the details in your lease to find out how much coverage you need.

2.      What is the difference between a Business owner’s policy (BOP) and Commercial property insurance?

Business owner’s policy combines General liability and Commercial property into one package, meaning you don’t have to apply for two separate policies.

3.      Is it possible to add another person to my policy?

Yes. As a business owner, you have the possibility to add another person or company to your policy. This individual is referred to as ‘additional insured’ and their name will be listed on your certificate of insurance.

4.      What is the difference between a normal peril and open peril?

Named perils are explicitly listed within the policy, and they are common ones are fire, theft, and vandalism. Policy with open perils has a wider range and includes everything except what’s explicitly excluded, which is why it usually costs more than named perils policy.

5.      What happens if I have other people’s property on my premises?

If you own a company who often has customers’ property on your premises as part of your usual  business operations, such as electronic repair shop, auto repair shop, or jewelry shop, where your business is responsible for consumers’ belongings, you have to ensure you have adequate coverage for the property in your care. In most cases, you need extra policy to cover third-party property. For instance, if your company assumes possession of third party’s vehicle, you need to purchase Garage keepers insurance. Although certain policies already include some coverage for third party property in your care, other policies do not, so it is important to check coverage with your insurance agent.

6.      What is Electronic data processing (EDP) insurance?

If your business relies on technology, it would be a good idea to obtain this type of coverage, since the majority of commercial policies have limited coverage for computer equipment. EDP insurance covers all electronic data-processing equipment, including hardware, data, software, and media. EDP insures you against losses such as power surges, cyber-attacks, short circuits, mechanical breakdowns, computer viruses, and certain natural disasters. This coverage is typically purchased as endorsement to Business owner’s policy or Commercial package policy (CPP).