1 – Building
Building is primarily decided by the constructing supplies used, in addition to the scale and age of the construction. The constructing supplies affect the constructing’s flammability or combustibility, in addition to its sturdiness. For instance, in case your constructing is made from flammable supplies, similar to wood-frame building, i.e., you will have 4 partitions, a roof, and flooring which might be all made from wooden and are all flammable, you’ll pay extra for business property insurance coverage than in case your constructing has 4 partitions, a roof, and a ground which might be all made from masonry, stone, metal, or a mixture of non-combustible supplies.
The scale of your constructing is the second consideration. The bigger the construction, the upper the price of property insurance coverage. And in addition the age of your constructing, for instance, when your constructing was final up to date, is it a 100-year-old constructing the place the most important electrical or mechanical techniques have by no means been up to date, if that’s the case, you’ll pay extra for business property insurance coverage than should you had a more recent constructing with newer mechanical techniques that had been all as much as code, and so these are vital components for the primary a part of the acronym C for Building.
2 – Occupancy
Occupancy refers to your actions within the constructing, together with what you do and the way you handle the dangers related to these actions. For instance, in case you have an workplace constructing the place there isn’t quite a bit happening and persons are simply sitting behind desks or in assembly rooms and doing information work, no matter you wish to name it, and there aren’t numerous dangers, you’ll pay much less in your property insurance coverage than should you had a physique store or a producing plant the place quite a bit is happening, possibly some kind of operation the place there’s a chemical mess, and also you’re utilizing flammable supplies in, you’ll pay extra for these operations than you’ll for an workplace constructing, college, or related construction.
3 – Safety
Safety has to do with what sort of alarms or safety techniques you will have within the constructing, similar to a hearth alarm, burglar alarm, fireplace extinguishers, sprinkler system, what protections you will have within the constructing to guard it within the occasion of an issue, similar to should you’re in an space the place the hearth service is respected, similar to a hearth division that’s extremely rated by your state’s insurance coverage commissioner, all of those are components that insurance coverage underwriters will have a look at.
4 – Publicity
Publicity and that is the one you will have the least management over, however your publicity is decided by your geographical location, how shut your constructing is to a forest fireplace space, a coastal space, a excessive wind space, a flood zone, or to a different constructing in case you have a low-risk constructing in case your actions are low danger, however your constructing is subsequent to one thing that will be thought of excessive danger, you’ll pay extra in your business property insurance coverage than if you weren’t subsequent to that top danger.