Does Commercial Property Insurance Cover Foundations?

• Additional Covered Property: Additional covered property adds coverage to the property already included on the policy. This can provide coverage for otherwise excluded aspects of the property, such as the foundation. 

• Additional Building Property: Additional building property allows the policyholder to add buildings to the policy that could possibly be considered personal property.

Bundling Coverages 
Obviously, carrying these coverages can be complicated if purchased all as separate policies. Thankfully, insurance agencies often offer bundles for business owners. There are two main commercial policy bundles: business owners policies and commercial package policies. 

A business owners policy (BOP) combines property coverage and general liability insurance for small businesses. Commercial package policies combine the same coverage for larger businesses in high-risk industries. Both policies allow the policyholder to combine commercial coverages into one comprehensive policy that is often more affordable than purchasing coverage separately. 

What Happens if You Don’t Own the Building? 
In many cases, you may rent out a space for your business, such as renting offices. In this case, you may not need insurance for the physical building itself. Landlords should carry property insurance in order to provide compensation for structural damages to the building you are staying in. This doesn’t mean that the landlord’s insurance will cover everything, however. 

Your landlord’s insurance generally won’t cover your business’ belongings if they are damaged, nor will it cover the expenses involved if you must put operations on hold due to the building being unusable after a disaster.  

Even when your landlord does have insurance, it won’t necessarily mean you are off the hook. If your business does something to accidentally damage the structure, your landlord’s insurance may cover it, but the landlord can also look to you for compensation. 

Be sure to speak with your landlord and insurance agent to determine whose coverage is needed when it comes to the business’ physical structure and make sure you have the right policy for your business.