Understanding the Risks
Shopping plazas and commercial properties face numerous risks. Physical damage can occur from natural disasters, such as storms or fires, vandalism, and accidents. Liability risks also loom large, with property owners potentially facing lawsuits for injuries that occur on their premises. Additionally, there’s the risk of business interruption, where a covered event forces a temporary shutdown, affecting rental income.
Types of Insurance Coverage
Property Insurance: This is fundamental for protecting the physical structure of your shopping plaza or commercial building, as well as any fixtures, fittings, and inventory against damage or loss. It’s important to ensure that the policy covers a broad range of perils, including fire, windstorm, theft, and vandalism.
Liability Insurance: General liability insurance protects against claims of bodily injury or property damage sustained by third parties on your property. This coverage is essential for shopping plazas, where high foot traffic increases the risk of accidents.
Business Interruption Insurance: Also known as business income insurance, this covers loss of income resulting from a disaster that disrupts the operation of the business. It can help cover expenses and lost revenue during periods when your tenants are unable to operate normally due to covered property damage.
Commercial Flood Insurance: In Ohio, certain areas are prone to flooding, particularly in the spring. Standard commercial property insurance policies do not typically cover flood damage, making it crucial to consider a separate flood insurance policy, especially if your property is in a flood zone.
Workers’ Compensation: If you have employees working on your property, Ohio law requires you to have workers’ compensation insurance, which covers medical costs and lost wages for work-related injuries and illnesses.
Choosing the Right Insurance Provider
Selecting an insurance provider for your commercial property involves more than just comparing premiums. Consider the insurer’s financial stability, experience in insuring similar properties, customer service reputation, and the ease of processing claims. Working with an insurance broker who specializes in commercial properties can provide valuable insights and help you navigate the variety of options available.
Customizing Your Coverage
Every shopping plaza and commercial property is unique, with specific needs based on location, type of tenants, and construction materials, among other factors. It’s important to tailor your insurance coverage to fit your specific situation. For example, if your property hosts restaurants or businesses that use flammable materials, you may need additional fire protection coverage.
Staying Compliant
In Ohio, certain types of insurance may be required by law for commercial properties, including workers’ compensation insurance. Additionally, if your property is financed, your lender may have specific insurance requirements. Ensure that your policy meets these legal and contractual obligations to avoid potential issues.
Review and Update Regularly
The insurance needs of your shopping plaza or commercial property can change over time due to renovations, changes in tenancy, or updates to Ohio’s insurance laws. Regular reviews of your coverage ensure that your property remains adequately protected against evolving risks.
Making the decision on which insurance to choose
Securing the right insurance for your shopping plaza or commercial property in Ohio is essential for protecting your investment and ensuring its long-term viability. By understanding the types of coverage available, selecting the right insurance provider, and customizing your policy to meet your specific needs, you can mitigate the risks associated with property ownership and management. Remember, the goal is not just to find insurance but to find the right insurance that offers comprehensive protection tailored to your property’s unique requirements.
