Start with the purpose of the coverage
Commercial property coverage can help a business recover when physical assets are damaged by a covered event. Values, causes of loss, deductibles, and recovery time should be evaluated together.
Maximum credible loss
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Per-claim and aggregate structure
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Cash flow available for retained loss
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
What the policy may help address
Buildings and tenant improvements
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Equipment, inventory, and contents
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Business income and extra expense
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Details to examine for this decision
- Replacement cost versus actual cash value
- Wind, hail, flood, equipment breakdown, and ordinance or law
- Coinsurance requirements, valuation dates, and catastrophe deductibles
Information to prepare
A complete submission helps distinguish the account and reduces avoidable follow-up. Prepare current records rather than relying on estimates from a prior policy period.
- Statement of values by location
- Building construction and major system updates
- Contents, equipment, inventory, and income values
Questions the review should answer
How does the program address replacement cost versus actual cash value?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address wind, hail, flood, equipment breakdown, and ordinance or law?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address coinsurance requirements, valuation dates, and catastrophe deductibles?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
Frequently asked questions
What should a business prepare for a Commercial Property limits and deductibles review?
Useful starting information includes statement of values by location, building construction and major system updates, contents, equipment, inventory, and income values. The specialist may request additional details based on the operation and available insurance markets.
Why should Commercial Property be reviewed separately from other policies?
Commercial property coverage can help a business recover when physical assets are damaged by a covered event. Values, causes of loss, deductibles, and recovery time should be evaluated together. The policy should also be coordinated with related property, liability, vehicle, people, contract, and continuity exposures.
Coverage descriptions are general and do not amend a policy. Eligibility, availability, limits, deductibles, exclusions, definitions, and terms vary by risk and insurance market. Actual policy documents control.