Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Texas Vacant Property Insurance
Texas Vacant Property Insurance. When a commercial property becomes vacant, the owners often wrongly assume their existing insurance policy will provide coverage during the period of vacancy. Since this is not usually the case, specific vacant property coverage is important for business owners to consider.
This Texas vacant property insurance offers broad package, or monoline, property and general liability coverage for vacant, and certain partially vacant, commercial properties, condo units, or rental space - with or without renovation work.
Texas vacant property insurance protects your unoccupied buildings from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
How Is Vacant Property Different From Commercial Property Insurance?
Since there are no operations there, vacant commercial properties tend to pose more risks than occupied ones. Acts of liability and fire, for instance, are potentially serious issues with a unoccupied property. Intruders might get hurt on broken floor boards or old fencing, and file a claim or sue. Some typical property insurance policies won't cover these types of risks on a vacant property, but Texas vacant property insurance is an option for you.
What Does Unoccupied Commercial Property Insurance Cover?
There are several increased risks associated with empty business properties. These include:
Liability: Optional liability provides coverage if you're found legally responsible for an accident on the vacant TX premises, that causes injury to someone or causes property damage.
Burst Pipes: This is a prime hazard for unoccupied properties due to the fact they are often left unheated. The water damage to vacant buildings is one of the reasons for which insurers insist on different coverage for unoccupied properties.
Flood and Fire: These hazards are considered by insurers to be more serious if they happen in unoccupied properties, as they stand more chance of getting out of control - which means greater levels of damage, and increased expense.
Squatters: Likewise, squatting is a serious problem for commercial landlords - not only because of the hassle and expense of removing uninvited occupants, but also due to the damage they may cause. People who enter a commercial property illegally and by force are unlikely to treat it with respect.
All these risks and hazards will be covered by a good Texas vacant property insurance policy - which gives landlords the peace of mind to get on with the other aspects of their business.
What Options Are Offered On A TX Vacant Building Policy?
Named Peril Coverage - This covers "perils" (things like fire, explosion, lightning, wind and hail) that are specifically named in your Texas vacant property insurance policy, subject to exclusions and conditions.
Agreed Loss Settlement (Total Loss) - If your unoccupied property is destroyed by a covered loss (a total loss situation), you receive the full amount of insurance you purchased on your Texas vacant property insurance policy, minus any applicable deductible.
Actual Cash Value (Partial Loss) - In the event of a covered loss (a partial loss or partial damage), this covers the cost to replace or repair your damaged building, with a deduction for depreciation, which reflects the age and condition of your building, minus any applicable deductible.
Landlord Flexibility - If you rent your property, and it goes vacant between tenants, you can cover it with a TX unoccupied property policy. When someone moves in, it can easily be endorsed to a landlord or owner-occupied policy, all without having to cancel the policy or write a new one. (not available in all states).
Short Term Coverage - You don't have to insure your vacant commercial property for the usual 12 months required by a normal policy. Most firms allow you to arrange cover for three, six, nine or 12 months, with the option to extend if necessary. So, you might take out a three-month policy to cover your TX property while it is up for sale. But if the sale takes longer than expected, you could simply extend the policy as required.
Full 12 Month Policy - You can get flexible payment plans and a pro-rated cancellation, subject to minimum earned premium. This comes in handy in case you move back into the commercial property, sell it, find a tenant, or need to cancel for some other reason before your year is up.
Special Coverage - If your commercial property is a historical building, has a thatched roof or any other less common features, you may need special insurance to protect it while it's unoccupied.
Requirements For Unoccupied Property Insurance
Before an insurer will offer you policy, they'll want to know what condition your property is in. If the building is in a poor state of repair with broken windows and boarded-up entrances, they're unlikely to insure it. It can also be a good idea to remove any valuables that you have at the property and keep them somewhere safer.
Some insurers may require you to take steps to protect your commercial property while you're away, such as having approved locks on your doors and windows, a working burglar alarm and timer-controlled heating to ensure that your pipes don't burst in cold weather. You may also need to switch off all utilities and drain the water system.
Vacant Property Insurance Cost
As with all insurance policies, there will be a number of factors that the insurer will take into consideration when calculating your premiums. The importance of each factor will differ between insurers meaning that premiums can vary, so it's important to shop around for a policy that suits your needs.
Typical factors include the value of the property, how long you wish to be insured for, why the property is unoccupied, the security that you have in place and your address. The security of your property will have a huge effect on your premium, so make sure that every entry point to your commercial property is secure. If you have an alarm, ensure that it's activated when you're away or it could invalidate your insurance.
Exclusions On Vacant Property Insurance
Every policy will have exclusions that apply to it, but they'll vary from insurer to insurer so always read your terms and conditions. Examples of typical exclusions to look out for include:
- Loss or damage as a result of unforced entry e.g. when windows or doors are left open or unlocked.
- Damage caused by major works, for example extensions and structural repairs.
- Damage caused by contractors (contractors should have their own insurance).
TX Vacant Property Insurance
A vacant property faces an increased risk when it comes to potential damage. Whether your property will be unoccupied for just a few days or for several months, make sure to update your insurance policy and follow a few simple steps to protect your building(s).
Texas Economic Outlook & Requirements For Commercial Insurance
If you are considering opening up a business in the Lone Star State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Outlook For The State Of Texas
In terms of the economy, Texas offers fantastic news for those who are thinking about starting up a business in this state. That's because the Lone Star State has the second largest economy of all 50 states in the nation. The gross state product is valued at an estimated at over $1.706 trillion in 2019. In 2015, the state was the headquarters for six of the top 50 Fortune 500 companies.
As expected, several industries contribute to the economy of Texas. One of the most notable industries is agriculture. In fact, this state has the highest production of cattle, sheep, and goat products. It is also the largest producer of cotton and cereal crops. Other crops that this state is famed for include cantaloupes, watermelons, and grapefruits.
Other leading industries in the State of Texas include:
- Computer Technology
If you are considering going into business in TX, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations For Business Owners In TX
The Texas Department of Insurance regulates is the main insurance regulatory agency in the Lone Star State. Texas is quite lenient when it comes to insurance requirements for business owners. In fact, there is only one type of insurance that business owners are legally required to carry, and that is commercial auto insurance. If you are planning on using a vehicle for anything related to your business, whether it's making deliveries, transporting goods, or meeting with clients, you must have a commercial auto insurance policy.
While Workers' Compensation coverage is required in every other state, in TX, is it not mandated; however, if you decide not to carry this type of coverage, you will be required to offer your employees some type of incentive package in the event that the do become injured or develop a work-related illness.
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
- Equipment Breakdown Protection Insurance
- Homeowners Association Insurance
- Inland Marine
- Mobile Home Park
- Non-Residential Building Operators
- Shopping Center & Strip Mall
- Vacant Land
- Vacant Property
The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.
The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.
This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.
There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.
These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.
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