Virtually all businesses need property insurance to cover the real and business property. Commercial property insurance provides funds to pay for repair or replacement of the insured's buildings, equipment, supplies, inventory, and other property when it is physically damaged or destroyed. To assure that the organization will receive the funds that it expects and needs in the event of a loss, the direct damage coverage must be properly written. It is particularly important to be sure that the policy covers the locations and types of property for which coverage is needed, that it covers all or most of the possible causes of loss to the property, that the property is valued appropriately, and that adequate limits of insurance have been purchased.
Construction, Occupancy, Protection and Exposure (“COPE”) are the four basic elements of underwriting data that real property underwriters have been using for many decades. Each of these four basic data points plays an important part in the commercial property underwriting process.
Construction: The first priority is to determine the property construction class (1-6). Property and building size, age, and material also play a role in underwriting process. Sometimes mixed-construction properties need special inspection and underwriting.
Occupancy: The type of occupancy and business that the property will be operated under will determine the risk factor of the property. Each particular insured’s hazards associated with the occupancy need to be carefully assessed and calculated.
Protection: Sprinkler systems, fire extinguishers, alarm systems, fire doors and fire walls and public fire protection are the primary protection mechanisms evaluated by underwriters.
Exposure: Exposure is the external factors that affect the insured property. Neighborhood location, planning zone, surrounding structures and occupancy, traffic pattern and volume, etc, these are all exposure factors.
The coverage forms and endorsements developed for the Commercial Property Program may be used in a monoline Commercial Property-Only Policy or as a part of a Commercial Package Policy (CPP) that includes other coverage parts, such as General Liability and Auto. Whether the Commercial Property insurance is issued as a monoline policy or as part of a commercial package policy (CPP) the policy must include seven basic parts or forms and other endorsement forms to add coverage and restrictions.
Please contact us for your eligibility and the insurance policy that fits your business needs best.