Shopping Center And Strip Mall Insurance Policy Information
Shopping Center And Strip Mall Insurance. A shopping center is a building or group of buildings with parking facilities in which space is rented to stores, professional offices, services, and eating establishments. The center can have as few as five tenants or may be a large mall with hundreds of tenants.
While the lease agreement spells out who is liable for losses, the shopping center is generally responsible for common areas, including parking lots, sidewalks and all maintenance; tenants are responsible for the specific unit that they lease. Vacancies can indicate a financial problem.
Being the owner of a shopping center or a mall can be an excellent investment. Consumers are always looking to purchase products, and businesses are always looking for spaces where they can easily supply their consumers with the products that they seek.
However, owning a shopping center or a strip mall is more than just an investment; it's also a responsibility. Your tenants rely on you to provide them with a safe space where they can conduct their business, and shoppers count on you to offer them a safe and secure space where they can buy the items they want and need.
Shopping centers lease space to retail and service tenants. The leases can be offered on a short-term basis or extend through a number of years. Shopping centers can be of the strip mall type with as few as five tenants or may be large mall-type mega centers.
There are certain risks that come along with the responsibility of owning a shopping center or mall. Damaged property, fires, injuries; these are just some of the risks that you face. Shoppers and tenants alike could file lawsuits against you, which could result in serious financial distress. Plus, legal action could put your reputation at risk, which will only cause further financial hardship.
How can you protect yourself from the risks that are associated with owning a mall or shopping center? - By making sure that you have the right shopping center and strip mall insurance coverage.
Shopping center and strip mall insurance protects your property from damage & lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked strip mall and shopping center insurance questions:
- What Is Shopping Center And Strip Mall Insurance Insurance?
- How Much Does Shopping Center And Strip Mall Insurance Cost?
- Why Do Shopping Centers And Strip Malls Need Insurance?
- What Type Of Insurance Do Shopping Centers And Strip Malls Need?
What Is Shopping Center And Strip Mall Insurance Insurance?
Shopping center and strip mall insurance is a type of commercial property insurance that is specifically designed to protect the owners and operators of shopping centers and strip malls.
This type of insurance typically covers the buildings, signage, and other structures on the property, as well as the business personal property (such as inventory, equipment, and furniture) located inside the buildings. It also provides liability coverage to protect against claims of bodily injury or property damage that occur on the property.
The coverage may also include protection against lost income if the property is damaged and unable to be occupied during repairs.
How Much Does Shopping Center And Strip Mall Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small shopping centers and strip malls ranges from $77 to $159 per month based on location, number of units, payroll, sales and experience.
Why Do Shopping Centers And Strip Malls Need Insurance?
Shopping centers and strip malls are large commercial properties that house many different businesses, as well as attract a large number of customers and visitors on a daily basis. Given the size and complexity of these properties, it is important that they have comprehensive insurance coverage to protect against a variety of potential risks and liabilities.
One reason why shopping centers and strip malls need insurance is to protect against property damage. These properties are vulnerable to natural disasters, such as earthquakes, hurricanes, and wildfires, as well as man-made events, such as fires, vandalism, and accidents. Without proper insurance coverage, the cost of repairing or rebuilding the property could be financially devastating for the owner or manager of the shopping center or strip mall.
Another reason why these properties need insurance is to protect against liability claims. Shopping centers and strip malls are high traffic areas where accidents can happen, whether it is a slip and fall in the parking lot, a customer tripping on a loose floor tile, or a tenant's product causing injury to a customer.
Without insurance, the shopping center or strip mall could be held financially responsible for any injuries or damages that occur on the property, which could lead to significant legal and financial costs.
Finally, shopping centers and strip malls need insurance to protect against financial losses due to business interruption. If a natural disaster or other event causes the property to be closed for an extended period of time, the businesses that operate within the shopping center or strip mall could suffer significant financial losses. Insurance coverage can help to mitigate these losses by providing financial compensation for lost income and expenses during the interruption period.
Overall, shopping centers and strip malls need insurance to protect against a variety of risks and liabilities that could potentially have a significant impact on their operations and finances. Without proper insurance coverage, these properties could be vulnerable to significant financial losses and legal challenges.
What Type Of Insurance Do Shopping Centers And Strip Malls Need?
These properties typically need a combination of different types of shopping center and strip mall insurance, including:
- Property Insurance: This covers the physical structure and contents of the shopping center or strip mall, including the buildings, fixtures, signage, and other property.
- Liability Insurance: This protects the shopping center or strip mall from claims of injury or damage caused by its operations. This includes general liability insurance, as well as coverage for specific risks such as slip and fall accidents, product liability, and professional liability.
- Business Interruption: This covers losses due to unexpected events that disrupt the operation of the shopping center or strip mall, such as natural disasters, fires, or other catastrophes.
- Workers Compensation: This covers medical expenses and lost wages for employees who are injured on the job.
- Commercial Auto: This covers damages or injuries caused by vehicles owned or operated by the shopping center or strip mall.
- Cyber Liability: This covers losses due to cyber attacks, data breaches, and other cyber threats.
- Environmental Insurance: This covers the costs associated with environmental risks such as pollution or contamination.
- Flood Insurance: This covers damages caused by flood events, which may be required if the shopping center or strip mall is located in a flood-prone area.
- Commercial Umbrella: This provides additional liability coverage over and above the limits of the shopping center or strip mall's other insurance policies.
- Tenant Insurance: Some shopping centers and strip malls may require tenants to carry their own insurance to protect their businesses and their customers. This may include liability insurance, property insurance, and other types of coverage.
- Directors and Officers: This protects the directors and officers of the shopping center or strip mall from claims related to their duties and responsibilities.
- Employment Practices Liability: This covers claims related to employment practices such as discrimination, harassment, and wrongful termination.
It is important for shopping centers and strip malls to work with an experienced insurance broker to determine the appropriate coverage for their specific needs and risks.
Strip Malls And Shopping Centers Risks & Exposures
Property exposure is moderate as occupancy generally includes one or more fast food or restaurant occupants. A complete list of tenants is necessary to accurately determine exposures. Ignition sources include electrical wiring, heating, and air conditioning systems. If there are restaurants, grease and oil from any deep-fat frying operations could cause a fire that affects other tenants or the entire building. The building owner must be aware of the electrical demands of tenants and supply them according to code. Conversions and upgrades should be handled with appropriate permits.
Each unit may have a separate heating system, or there may be a boiler to provide heat to all units. All systems must be properly maintained on an ongoing basis. While some tenant turnover is expected, a high percentage of vacancies can indicate a financial problem. Other property concerns are the age, condition, and repair of the building, the size, and configuration of the building including the roof expansion, and the condition and structure of the roof.
If the building has any unique architecture or design, valuation may be a concern. Because of their size and the number of customers on premises, large shopping centers may be targeted for terrorism. Appropriate security should be provided. Business income exposure could be high as tenants may be unable to access the building and backup facilities may not be available.
Premises liability exposure is very high due to the number of visitors to the premises. Special events may pose additional concerns due to crowds. The owner may be responsible for maintaining the building, parking lots, and sidewalks, or they may transfer these responsibilities by contract to a primary tenant. Tenants are normally responsible for the condition of the area that they control.
To prevent slips, trips, and falls, all premises must be well maintained with aisle ways free of debris, flooring in good condition, no frayed or worn spots on carpet, and no cracks or holes in flooring. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Parking lots, parking garages, and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and fall. If the owner is responsible for maintenance, there should be an activity log to document the owner's response to tenants' needs.
Security of visitors through the shopping center, including the parking lot, is a responsibility of the owner or operator of the premises. There should be frequent security patrols. Should an emergency situation arise, there should be evacuation plans in place to quickly move tenants and visitors to a safe area. Personal injury losses may occur due to alleged false arrest, wrongful eviction, invasion of privacy, or discrimination.
Contractual relationships should be reviewed, and certificates of insurance obtained from tenants, vendors, and subcontractors. Additional insured status should be considered. If security personnel are employed, procedures must be established as to appropriate response to their assigned duties. Additional exposure is presented if the security personnel carry firearms.
Workers compensation exposure is normally service, janitorial, or maintenance-related. Back injuries, hernias, sprains, and strains from lifting and working from awkward positions are common. Skin and lung irritation can result from working with cleaning chemicals and paint.
Interaction with visitors can be difficult. Employees should be trained in dealing with difficult situations. If security officers are employed, they should be well trained for the duties assigned and appropriately supervised. If firearms are carried, the employee must meet all licensing and training requirements.
Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees. Receipts must be provided for all payments, and reconciliation between receipts and money received. Deposits should be made promptly with appropriate security provided. All orders and disbursements must be handled by separate individuals.
Access to units must be limited to those authorized to do so, and access to master keys must be strictly controlled. Units should be rekeyed when there is a change in tenant.
Inland marine exposures are from accounts receivables for rents due, computers, signs, and valuable papers and records for leases, mortgages, and tenants' information. Duplicates of all data must be kept off premises for easy replication in the event of a loss. Signs may be subject to wind, vehicle damage and collapse from the weight of ice and snow. Contractors' equipment may be needed if maintenance of yard and buildings is handled internally. Some building owners may display fine arts in the common areas.
Commercial auto exposure is generally limited to hired and non-owned (HNOA) for employees running errands. If there are owned vehicles, such as those used for servicing or security patrols provided by the building owner, any driver must have a valid license and acceptable MVR. Routine maintenance on owned vehicles should be documented.
Commercial Insurance And Business Industry Classification
- SIC CODE: 6512 Operators of Nonresidential Buildings
- NAICS CODE: 531120 Lessors of Nonresidential Buildings (except MiniWarehouses)
- Suggested Workers Compensation Code(s): 9012 Building or Property Management - Property Managers and Leasing Agents & Clerical, Salespersons, 9015 Building or Property Management - All Other Employees
Description for 6512: Operators of Nonresidential Buildings
Division H: Finance, Insurance, And Real Estate | Major Group 65: Real Estate | Industry Group 651: Real Estate Operators (except Developers) And Lessors
6512 Operators of Nonresidential Buildings: Establishments primarily engaged in the operation of nonresidential buildings.
- Bank buildings, operation of
- Insurance buildings, operation of
- Lessors of piers, docks, and associated buildings and facilities
- Operators of commercial and industrial buildings
- Operators of nonresidential buildings
- Retail establishments, property operation only
- Shopping centers, property operation only
- Theater buildings (ownership and operation)
Shopping Center And Strip Mall Insurance - The Bottom Line
Next to commercial general liability insurance, property insurance is the most important coverage for strip mall and shopping center owners. This type of coverage protects the property, including the buildings on it, the signage, the landscaping, the sidewalks, the parking lots, and the garages.
If any of these elements of your property are damaged as a result of a fire, a weather-related incident, vandalism, or any other type of destruction, a commercial property insurance policy will provide you with the protection that you need. It covers the costs of repairing and replacing damaged property so that you don't have to pay for it out of your own pocket.
Insurance is absolutely vital for shopping center and mall owners. Speak to a experienced insurance broker to find out what type of insurance you need and how much coverage you require so that you can keep your investment - and yourself - protected.
Additional Resources For Commercial Property Insurance
Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.
- Apartment Building
- Business Interruption
- Commercial Flood Insurance
- Commercial Property
- Condo Association
- Contractors Equipment
- Duplex Rental Property
- Electronic Data Processing Equipment
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Jewelers Block
- Manufacturing And Mercantile Rental Property
- Mobile Home Park
- Non-Residential Building Operators
- Office Buildings
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
- Specialty Habitational
- Specialty Inland Marine
- Specialty Property
Commercial property insurance is a type of insurance that provides coverage for businesses against losses or damages to their business property. This can include buildings, equipment, inventory, and other assets owned by the business.
There are several types of commercial property insurance, including standard property insurance, business interruption insurance, and contents insurance.
- Standard property insurance covers damages to the physical structure of the business, such as the building, walls, and roof.
- Business interruption insurance covers lost income and expenses incurred during the repair or rebuilding process.
- Contents insurance covers damages to personal property within the business, such as office equipment and furniture.
Commercial property insurance is important for businesses of all sizes, as it helps protect against financial losses due to unforeseen circumstances, such as natural disasters, theft, or vandalism. It can also provide liability coverage in case of accidents or injuries on the business property.
To determine the appropriate level of property insurance for a business, it is important to consider the value of the business's assets, the location of the business, and the potential risks it faces. Many businesses choose to work with an insurance agent or broker to help identify the best coverage options for their specific needs.
Overall, commercial property insurance is a crucial part of any business's risk management strategy, helping to protect against financial losses and ensuring the long-term viability of the business.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.