How to Obtain Commercial Property Terrorism Insurance

Commercial property insurance provides business owners like you protection against a variety of natural and artificial actions. Floods, fires, burglary and industrial accidents often fall under the aegis of commercial property insurance. A typical commercial property insurance policy may not be sufficient against terrorism and you need to obtain the right plan to protect against such attacks.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Business plan
• Financial statements
• Proof of property ownership

Shield Your Commercial Property Through Terrorism Insurance

1. Copy the deed to your property and other registration information regarding your commercial property. Commercial insurance providers need to know that you are the legal owner of the property to facilitate terrorism coverage.
2. Compile floor plans and structural tests for all facilities to be covered by commercial property terrorism insurance. Underwriters will work with architectural consultants to determine accessibility, building integrity and other criteria to determine the risks involved when insuring your property.
3. Avoid surprises during the commercial property application process by hiring a consultant to review all of your materials. Consultants with experience in the insurance industry along with a working knowledge of architecture can give you a preliminary judgment that should be similar to the insurance company's decision.
4. Provide your business plans and potential ideas on expansion when you obtain terrorism insurance for your commercial property. These documents will help insurance underwriters determine what you are doing to prevent terrorism and keep your company robust.
5. Compare local and national insurance providers before you obtain a commercial property insurance policy. There are few local companies that provide terrorism insurance but the level of service and localized attention given by these providers trumps the lower costs of a large insurance company.
6. Release your operating budget and pay roll to an insurance provider as you apply for commercial property terrorism insurance. All insurance companies will ask for an assessment of your corporate finances to determine the potential for defaulting on monthly premiums. Underwriters also need to know the worth of your assets when assessing your level of terrorism insurance.
7. Ask a potential insurance provider the upward limit for repayment on a terrorism insurance claim. You should determine the individual costs of machinery and physical structures in your business. Compare the two numbers and proceed with insurance if the upward limit is greater than the sum of the individual costs.

Tips & Warnings

• Seek out the definition of insurance companies for terrorism before purchasing a policy. There is no uniform definition of terrorism by underwriters and certain policies may preclude particularly devastating attacks. Insurance agents should be able to answer questions about terrorism coverage in commercial property insurance.