Maryland Commercial Property Insurance

Your Complete Guide to Maryland Commercial Property Insurance

Local independent insurance agents can help you be certain that all your business assets are suitably covered.

Maryland Commercial Property Insurance

In 2019, businesses in Maryland collected $7,567,341,000 in insurance claims. Many of these claims were due to lost or damaged property. If you are a business owner in the Old Line State, you can protect the investment you have made in your company’s assets with commercial property insurance.

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

Who in Maryland Needs Commercial Property Insurance?

Any Maryland business that owns the building it is housed in or has expensive, valuable, or excessive property can benefit from having a commercial property insurance policy.

Commercial property insurance is not typically purchased as a stand-alone policy. Instead, it is included in either a business owners policy (BOP) or a business insurance policy.

How Much Does Commercial Property Insurance Cost in Maryland?

Commercial property insurance premiums can vary from one business to the next. This is because rates are calculated according to several factors such as the following.

  • Whether you own or rent the building in which your business is housed
  • The types and value of the property you wish to insure
  • Whether you are purchasing replacement cost or actual cash value coverage
  • The crime rate and weather risks in the ZIP code where your business is located
  • The amount of your deductible

On average, businesses spend about $65 a month on their commercial insurance coverage. However, small businesses that own little in the way of property will pay a lot less, while large companies with a large inventory and/or expensive assets can expect to pay much more.

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

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 such as the following items.

  • Office furniture and supplies
  • Merchandise and inventory
  • Tools, equipment, and machinery
  • Shelving units, display cases, and storage cabinets
  • Records and paperwork
  • Landscaping and décor

You will want to be sure that your policy’s 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 damaged by a major disaster like a hurricane or a structure fire.

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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 Maryland. Covered events include the following.

  • Fires and explosions
  • Severe storms, including electrical storms, windstorms, tropical storms, and hurricanes
  • Tornadoes
  • Severe winter weather such as heavy snow, ice accumulation, or prolonged freezing temperatures
  • Property crimes, including theft, vandalism, and arson

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

What Does Commercial Property Insurance Not Cover?

Business owners should be aware that their commercial property insurance does have some exclusions. For instance, your policy will not cover the following.

  • Damage-related liability costs: If damage to your business-owned property results in injuries or damage to others, such as if your outdoor sign is blown over in a windstorm and lands on your customers’ parked vehicles, your commercial property insurance will not pay for this third-party damage. Instead, you will need to rely on your commercial general liability insurance for this coverage.
  • Your company-owned vehicles: Although these vehicles are technically company-owned property, they are not covered by your commercial insurance policy. Instead, they must be covered by a commercial vehicle insurance policy that meets or exceeds Maryland’s minimum coverage requirements.
  • Flood-damaged property: Flood damage is specifically excluded from your commercial property insurance coverage. This is true even if the flood is the direct result of a covered hurricane. Fortunately, you can cover your business property 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).
  • Earthquake-damaged property: Although earthquakes are rare in Maryland, some portions of this state do have a moderate risk of sustaining earthquake damage. To ensure that your business property is covered against this risk, you may want to invest in a supplemental earthquake insurance policy.
  • Property lost due to employee theft: Although your commercial property insurance will cover against thefts by third-party actors, it does not cover losses caused by illegal or dishonest acts committed by your employees. Instead, you will need to get this coverage through fidelity bonds or crime insurance.

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

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

When you are looking for the best insurance policy to cover your business property, you can turn to a local independent agent for help. These experienced insurance professionals are ready to answer your insurance-related questions, provide trustworthy advice, and shop around to find you great coverage at a competitive price.

There are more than 200 independent agents in Maryland. Set up a one-on-one consultation with an insurance agent near you to start comparing customized quotes.

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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

http://www.mgs.md.gov/seismic/index.html