Q: What is the difference between Open Perils and Named Perils for commercial property?
A: An Open Perils commercial policy covers your business property against all causes of loss unless a specific peril is explicitly listed as excluded in the policy text. A Named Perils policy only pays out for losses caused by the specific events written directly into the contract (such as fire or lightning). To ensure your business assets enjoy maximum protection, call for a quote on an open perils policy from Coleman Insurance.
Q: What is the Coinsurance Clause in a Georgia commercial property contract?
A: A Coinsurance Clause requires a business owner to insure their commercial property for a set percentage of its true replacement value (usually 80% or 90%). If you underinsure your property and fail to meet this threshold, the carrier will apply a financial penalty, paying out only a fraction of any partial claim. The Coleman Insurance Agency can write policies with accurate property valuations to prevent coinsurance penalties from devastating your business.
Q: How does Business Interruption insurance work after a disaster?
A: Business Interruption (Business Income) coverage steps in if a covered physical disaster (like a structural fire) forces your business to close down temporarily. It compensates you for lost net income and pays for ongoing, fixed operational expenses like payroll, utility bills, and loan payments while your property is rebuilt. To secure your business continuity framework, call for a quote from Coleman Insurance.
Q: What is a “Period of Restoration” in commercial property insurance?
A: The Period of Restoration is the specific window of time that Business Interruption insurance will pay out for lost revenue, typically beginning 72 hours after the physical damage occurs and ending when the property should be reasonably repaired. The Coleman Insurance Agency can write policies that optimize or extend this period, giving your business the cushion it needs to fully recover.
Q: Does commercial property insurance cover my business inventory?
A: Yes. Inventory, raw materials, office computers, and specialized machinery are covered under Business Personal Property (BPP) coverage, which protects these items while they are located inside the insured building or within 100 feet of the described premises. To ensure your changing inventory levels are fully accounted for, call for a quote from Coleman Insurance.
Q: What is Equipment Breakdown insurance, and why is it separate?
A: Standard commercial property policies explicitly exclude damage caused by internal mechanical breakdowns, electrical arcing, short circuits, or pressure vessel explosions. Equipment Breakdown insurance fills this gap, covering the repair or replacement of HVAC systems and manufacturing machinery. The Coleman Insurance Agency can write Equipment Breakdown riders seamlessly into your commercial package.
Q: How does Utility Services – Time Element coverage protect a Georgia business?
A: This specialized endorsement extends your Business Interruption coverage to pay out if a disaster occurring off your premises (such as a local electrical substation catching fire) cuts off power, water, or internet services to your business, forcing an operational shutdown. To protect your business from off-site infrastructure failures, call for a quote from Coleman Insurance.
Q: Is commercial glass damage handled differently under a property policy?
A: Yes. Depending on the age of your commercial building and your lease agreement, large plate-glass windows may require a specific Commercial Glass Endorsement. Many standard commercial policies cap glass replacement payouts or exclude them entirely unless caused by specific named perils. The Coleman Insurance Agency can write dedicated glass riders into your commercial property framework to ensure storefront protection.
Q: What is Tenant’s Improvements and Betterments coverage?
A: If you lease a commercial space in Georgia and pay out of pocket for permanent upgrades (like custom flooring, lighting, or structural walls), those additions belong to the landlord but are your financial loss if destroyed. Improvements and Betterments coverage protects your financial investment in those permanent modifications. To protect your leased build-out, call for a quote from Coleman Insurance.
Q: Does commercial property insurance cover employee theft or embezzlement?
A: No. Standard commercial property policies only cover external crimes like burglary and vandalism. To protect your business cash, inventory, and accounts from internal fraud or embezzlement committed by your own staff, the Coleman Insurance Agency can write a separate Commercial Crime policy or endorsement to fully secure your operational capital.
