Insurance Gaps That Catch Commercial Property Owners Off Guard
A property owner assumes their commercial policy covers what a homeowner's policy would cover, just scaled up. Then a tenant's business shuts down for three months after a fire, or a slip-and-fall lawsuit exceeds the liability limit by a wide margin, and the gap between what was assumed and what was actually insured becomes an expensive lesson. Why Commercial Insurance Isn't Just "Bigger Homeowner's Insurance" Residential insurance is built around a fairly standardized set of risks. Commercial insurance has to account for tenant liability, business operations, income interruption, and property-specific hazards that vary enormously depending on whether the building houses a warehouse, a medical office, or a retail strip center. According to the Insurance Information Institute , commercial property owners frequently underestimate how much their coverage needs differ from a standard homeowner's policy, particularly around what happens when a covered event ...