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Do You Require Commercial Property Insurance in Texas?

May, 05 2022

Commercial Property Insurance

Do You Require Commercial Property Insurance in Texas?

Operating a business comes with multiple risks. Even a single accident can ruin everything that you've worked for. However, with Texas commercial insurance, you can protect your investment during disasters and other emergencies. Here's a look at why commercial property coverage is so important. 

If you own business property, obtaining commercial property insurance should be a priority. Protecting your property helps ensure future success for your business. Operating a business is risky because new threats emerge as times change. The major developments over the past few years have impacted insurance and made it difficult to maintain the appropriate level of coverage. However, you can discuss with your insurance agent to learn how much coverage you need to stay covered against the possible risk exposures. 

Following are some factors that mandate commercial property insurance in Texas:

  • Natural Disasters 

    The state of Texas is often prone to natural disasters. There is a strong chance that your business could be impacted by a hurricane, wind, wildfire, flood, or tornado, which makes obtaining commercial insurance important. Commercial insurance policies have add-on coverage to cover any property damage caused by these perils.  A lack of protection could leave your business vulnerable to significant damage and resulting financial losses. 

  • Ongoing Pandemic 

    Many businesses suffered significant damage due to the COVID-19 pandemic, but such damages are not covered by commercial insurance policies. Looking to the future, some insurance companies are offering pandemic coverage. The available options depend on the carrier and the policies they offer. You must assess your current losses and be prepared for the future by purchasing a policy that covers your business against losses caused by the pandemic. 

  • Civil Unrest 

    Current events have caused the United States to deal with severe civil problems that haven't occurred in many years. The unrest influences crime rates. Standard Texas commercial insurance policies may not cover damages caused by civil unrest. Your business may also be left unprotected against possible crimes. Therefore, talk to your insurance agent to see if supplemental coverage is available to help fill in potential gaps in your standard commercial insurance policy. 

  • Rising Repair/Replacement Costs 

    Another variable that impacts your commercial property insurance policy is the rising costs of repairing and replacing damaged property. Contact your agent to learn what it will cost today to repair or replace damaged property and increase your policy limits accordingly. Increasing your policy limits can give your business a layer of protection if you have to deal with issues such as supply chain interruptions.  

  • Potential Income Losses

    Even if commercial property insurance covers physical losses, business owners have to bear potential income losses. A comprehensive commercial insurance policy should reimburse income losses and other expenses if regular operations are disrupted after a covered loss. Otherwise, you can add business interruption coverage to your policy and recuperate lost income. Adding lost income coverage is strongly recommended with damage claims continuing to rise.  

  • Other Things to Consider 

    The last couple of years have impacted our society in a significant way. It's possible that you no longer have enough coverage to fully protect your business. The increased risk of operating a business may leave gaps in your current policy. Talk to your insurer to see which parts of your commercial insurance policy should be overhauled to prevent a major loss. 

Consult with GrayStone Insurance Group 

The influx of recent threats has caused many businesses to overhaul their commercial property insurance policies. If you have questions about commercial property insurance coverage, contact the experts here at GrayStone Insurance Group today and we will assist you.