Colorado Commercial Property Insurance

Your Complete Guide to Colorado Commercial Property Insurance

Make sure that your business-owned property is fully covered against any damaging risks that may come your way.

Colorado Commercial Property Insurance

In 2019, businesses in Colorado collected $8,800,495,000 in insurance claims. Many of these claims were due to lost or damaged property. If you are a business owner in The Centennial State, you can protect the investment you have made in your company’s assets with commercial property insurance.

Local independent agents are available to help you find the best property coverage for your business. These agents work for you, not for a particular insurance company, so they are free to shop around to find you suitable coverage at a competitive price. Contact an insurance agent near you to learn more.

Who in Colorado Needs Commercial Property Insurance?

Every business in Colorado that owns expensive, valuable, or excessive property can benefit from carrying a commercial property insurance policy.

Commercial property insurance is not typically purchased on its own. Rather, it is included in a business owners policy (BOP) or a business insurance policy.

What Kinds of Property Does Commercial Property Insurance Cover?

Commercial property insurance is rather comprehensive. It can cover the structure of the building in which your business is housed (if it is company-owned) as well as most of your business property, including:

  • Office furniture
  • Supplies
  • Merchandise and inventory
  • Tools and machinery
  • Outdoor signs
  • Shelving units
  • Filing cabinets
  • Records and paperwork
  • Landscaping

You will want to be sure that your coverage levels are high enough to enable you to repair or replace all of your commercial property in the event of a total loss, as may happen if your business is impacted by a tornado or structure fire.

What Hazards Does Commercial Property Insurance Cover Against?

Commercial property insurance is designed to cover you against most of the hazards you are likely to face as a business owner in Colorado. Covered events include:

  • Fires, including accidental fires and wildfires
  • Severe storms, including electrical storms and windstorms
  • Tornadoes
  • Severe winter weather including heavy snows, ice accumulation, and prolonged freezing temperatures
  • Property crimes, including theft, vandalism, and arson

You can learn more about what your commercial property insurance can cover against by consulting a local independent insurance agent.

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What Doesn't Commercial Property Insurance Cover?

As with any kind of insurance policy, commercial property insurance does have some exclusions. Your policy will not cover:

  • Vehicles: While your business-owned vehicles are in fact company-owned property, they are not covered by your commercial insurance policy. Instead, they need to be covered by commercial vehicle insurance.
  • Flood damage: Although severe storms are covered by your commercial property insurance, if they result in flash flooding, the flood damage is not. You can cover your business with up to $500,000 in structural coverage and $500,000 in contents coverage with an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP).
  • Landslides and mudslides: Damage caused by earth movement are not covered by commercial property insurance. However, because mudslides and landslides are nearly always associated with flooding, you may be able to get coverage through your flood insurance policy.
  • Earthquake damage: While the risk of an earthquake in Colorado is low to moderate, it does exist. Experts have determined that based on historic data and geologic studies, there is a very high chance that a quake of magnitude 6.5 to 7.5 could occur somewhere in this state in the foreseeable future. To ensure that your business property is covered against this risk, you may want to invest in a supplemental earthquake insurance policy.
  • Liability costs: If damage to your business-owned property results in injuries or damage to others, your commercial property insurance will not cover this third-party damage. Instead, you will need to rely on commercial general liability insurance.
  • Employee theft: Although your commercial property insurance will cover thefts by third-party actors, it does not cover losses caused by illegal or dishonest acts by your employees. Instead, you will need to get this coverage through fidelity bonds, or crime insurance.

Additionally, if the business property you are insuring includes a multi-unit commercial property, this will not cover loss or damage to your tenants’ property. They will be responsible for carrying their own commercial property insurance.

How Much Does Commercial Property Insurance Cost in Colorado?

The cost of commercial business insurance can vary from one company to the next. This is because rates are calculated according to several factors such as:

  • Whether you own or rent the building in which your business is housed
  • The kinds of property you wish to insure
  • The value of your business-owned property
  • The amount of coverage you are purchasing
  • The crime rate and weather risks in the ZIP code where your business is located
  • The size of your deductible

On average, businesses spend about $800 a year for their commercial insurance coverage. However, small businesses with little in the way of property will pay a lot less, while large companies with a lot of inventory and assets can expect to pay much more.

The only way to find out how much commercial property insurance will cost for your Colorado business is by requesting customized quotes from a few insurance carriers. Independent insurance agents can save you time and money by doing this on your behalf.

How Can I Find the Best Commercial Property Insurance in Colorado?

When you are shopping for any type of insurance coverage for your Colorado business, you can turn to a local independent agent for help. These experienced professionals can answer your insurance-related questions, provide trustworthy advice, and shop around for great coverage at a competitive price.

There are more than 250 independent agents in Colorado. Set up a one-on-one consultation with an insurance agent near you to get started.

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TrustedChoice.com Article | Reviewed by Jeffrey Green

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https://www.iii.org/publications/insuring-your-business-small-business-owners-guide-to-insurance/specific-coverages/property-insurance

https://www.fema.gov/data-visualization/disaster-declarations-states-and-counties

https://www.shakeout.org/colorado/whyparticipate/