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Property Insurance provides protection against most risk to property, such as fire and theft. The coverage can include anything from buildings to business personal property. Typically, business owners can buy a single policy to cover businesses operating at multiple locations.
However, you might need separate policies if some locations serve different functions and have different risk profiles. This could be the case, for example, if your business has an administrative office and a separate factory. Different types of commercial property policies protect against different risks, or "perils."
Some policies will cover only those risks specifically named in the policy. Other policies will cover all risks, unless the policy specifically excludes them. You may need to buy additional coverages or specialized policies, such as flood, windstorm, or crime coverage, to fully protect your business.
There are 3 basic types of policy forms:
Basic form policies typically cover common risks or perils, such as damage from fire, lightning, windstorm, vehicles, aircraft, or civil commotion.
Broad form policies typically provide basic form coverage plus coverage for additional perils, such as water damage, structural collapse, sprinkler leakage, and losses caused by ice, sleet, or weight of snow.
Special form policies cover against all types of losses except those the policy specifically excludes. Common special form exclusions include losses from flood, earth movement, war, terrorism, nuclear disaster, wear and tear, and insects and vermin.