Property coverage is critical to every company’s risk management strategy. It covers direct and indirect damage to businesses’ physical assets for covered losses. It helps keep operations running smoothly even if your operations are temporarily halted due to a catastrophic loss. Whether you are a home-based business or have a schedule of properties scattered across the county, we can protect your property exposures.
Protect your assets like your business depends on it.
We don’t want you to pay more than you should either. We will steer you towards savings.
We have been helping Arizona business owners for almost 40 years. We are your local insurance advocates.
This coverage protects scheduled buildings including their permanently attached equipment for covered losses on either an actual cash value, replacement cost, or agreed value basis. Coverage can be blanketed to provide broader coverage.
This coverage protects business assets including office supplies, office furniture and furnishings, computers, electronics, machinery, equipment, and inventory.
If your business shuts down temporarily due to a covered loss, this coverage replaces lost income, payroll, rent, and ongoing financial responsibilities. The extra expense pays for things like renting temporary office space, renting equipment, paying overtime, or making arrangements for open orders to be fulfilled by a competitor.
This coverage protects property that belongs to someone else but that is in your care, custody, or control. This prohibits it from being covered as BPP.
This coverage is a typical exclusion on the commercial property form and must be bought back.
This covers the enforcement of ordinances or laws that went into effect after the building was completed. If your building has grandfathered provisions, you will need to bring your building up to code if you have a complete loss.
This optional coverage protects against damage from internal forces, power surges, electrical shorts, mechanical breakdowns, motor burnout, and even operator error. It does not cover normal wear and tear or deferred maintenance.
This coverage protects equipment and business income from losses caused by an offsite outage at a major utility (water, power, or telecommunications).
This coverage protects movable tools and equipment like tools, equipment, and forklifts that leave your premises. Coverage can be blanketed for small-value tools or scheduled for larger equipment.
This coverage can be wrapped up within business personal property or broken out for stock and inventory for a slightly lower property rate.
This coverage protects your goods and equipment as they move between different locations.
It is a good practice to review your property coverages annually at renewal to make sure your limits are properly programmed. Building values fluctuate with market conditions which can put pressure on making sure limits are adequate.
Policies are written with a coinsurance percentage of 80%, 90%, or 100%. This allows for a small buffer should your limit be slightly underinsured at the time of loss. Depending on how your policy is written, you may have a penalty assessed at the time of loss if the adjuster determines you were significantly underinsured. This will cause frustration when you receive a fraction of your claim settlement.
Arizona has wild weather. Insurance carriers sustained heavy property losses when a 100-year hail storm pummeled Arizona in October 2010. Insurance companies reactively started attaching the CP 1036 endorsement.
This endorsement allows carriers two options. They can either replace the roof on a depreciated actual cash value (ACV) or exclude coverage for cosmetic damage.
What effect does this have on your business? Potentially a lower claim settlement or an ugly but still functional roof. Does that bother you? It does us. When you work with Wilson Insurance, you work with an advocate who pushes back against coverage erosion.
A manufacturer’s finished product is valued as actual cash value or replacement cost. By attaching this endorsement, manufacturers can recover the higher market value, including the baked-in profit.
Building ordinance or law covers the cost to rebuild and update your property to the most up-to-date building codes. If you didn’t have an ADA-compliant building because you were grandfathered in, this coverage kicks in extra funds so you can be.
Yes! This business income provides a separate limit of insurance to cover lost income, operating expenses, and payroll for covered claims. Extra expense covers the expenses to move to a temporary site while your main location is restored, to buy or lease equipment for your temporary site, and to hire temporary employees during the transition.
The simplest way is to get a third-party appraisal. The best time to get an appraisal completed is before an accident. Once an appraisal has been accepted by an insurance carrier, you will want agreed value valuation endorsed to your policy.
If you underinsure your property, your insurance company may penalize you if your policy is written on a coinsurance basis. This means that even if a claim is accepted, you may only receive a fraction of your award amount. Concerned this may happen to you? Give us a call and we can review your coverage!
During the Great Recession, many businesses underinsured their businesses to save money. They then blanketed their property coverage so they could circumvent the coinsurance penalty. This meant insurance companies weren’t collecting enough premiums to cover property claims.
As a result, the margin clause was applied to new and renewal policies. It negates the advantage of blanketing coverage by pegging the most an insured can collect to a 100%, 110% or 125% of the scheduled property values.
Yes! We have experience writing complex high-value property schedules either in a single location or blanketed across multiple locations.
Just because you have a high-valued property doesn’t mean it will all burn in a catastrophic event. We will map your property and determine what the probable maximum loss (PML) is and use that as a rating basis as an alternative to the larger total insured value (TIV). It helps to have a former senior underwriter on staff, doesn’t it?
When you have agreed value, coinsurance penalties are waived. You can upgrade your policy with underwriting approval. Sometimes an industrial appraisal may be required.
For certain industries, such as woodworking, welding presents a significant exposure. A formal hot work permit program that uses tags identifies areas where hot work has been completed, loops in management, establishes safety and housekeeping protocols, and deputizes fellow employees to keep their eyes and noses alert for signs of burning embers.
Certain industries, such as woodworking or food manufacturing, have machinery that create combustible dust. The risk of explosion multiples by the number of machines feeding into the system leading to a central bag house or cyclone. When spark detection & fire suppression systems are installed, sensors within the dust collection system can identify threats and neutralize them with a mist of water.
Because these systems can be a capital investment, insurance companies reward companies with credits that can offset the cost over time.
