Commercial real estate is an ever-changing business that has its own unique set of opportunities and challenges. Owners, developers and financial institutions can reap great rewards, but they must also safeguard their investment from potential risks ranging from natural disasters to legal disputes. Commercial property buildings insurance can offer the needed protection. Here are some important examples of why this type of insurance is critical.
A natural disaster can significantly impact a company’s ability to function. Office space and equipment can be destroyed or damaged beyond recovery. Some regions in the country are more prone to certain types of natural disasters. California is susceptible to earthquakes and fires. The mid-west has tornadoes and floods. Florida and the Gulf Coast region can be vulnerable to hurricanes. Commercial property buildings insurance can provide the money to help cover expenses incurred as a result of damaged property.
Real estate contracts can be very complex, especially commercial property contracts. Breach of contract, zoning ordinances, old easements, deeds and covenants are all issues that may result in a dispute. A legal conflictcan be very expensive and time consuming. Commercial property insurance can help cover legal expenses in the event a company becomes involved in lawsuit.
Commercial property buildings insurance an offer financial protection in the case of a natural disaster or legal dispute.