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Written by Adam Miller
How Commercial Property Upgrades Can Impact Commercial Insurance Coverage

Over time, businesses might find themselves in need of more space, improved facilities, or additional tools, equipment, and furnishings. This might be due to having an older building, or because of rapid expansion and growth. Rather than try to find a new location, it might make more sense logistically and financially to simply upgrade the existing building and business assets. While upgrades can potentially save time and money, it could also mean an upgrade or addition to commercial insurance coverage. Today's Aegis blog post looks at how upgrades can impact commercial insurance protection.

Building Additions

For businesses that are experiencing continued growth in their existing location, it may be possible to simply construct an addition to the building instead of moving to a bigger location. For example, a restaurant might add a patio or banquet room for extra seating, or a retail store might expand their square footage in order to increase their sales floor. Existing commercial insurance policies, such as commercial property coverage, must be adjusted to reflect the additional square footage of the business so that any potential damages, liabilities, or losses for those areas are covered by insurance.

Improvements

Even if a company has adequate space to conduct their business and even room to grow, the facilities themselves may be in need of an upgrade or improvement. For example, an office park might need new signage or an upgraded façade in order to attract potential tenants. A restaurant might benefit from a repaired and expanded parking lot for customers, a retail store might need to video monitoring system to combat theft, or a new roof or sprinkler system might be needed in an older building. It's important to ensure that improvements and upgrades are reflected in existing commercial insurance policies as they could impact premium rates, coverage amounts, or exclusions or inclusions.

New Equipment

Finally, businesses can often benefit from upgrading tools, equipment, and furnishings as it can make the business run more efficiently and improve the customer experience. Whether it's upgrading kitchen equipment, replacing outdated security or network technology, adding safer tools, or replacing older tables and chairs, a change in business assets should also result in a change in commercial coverage. The value of new equipment, tools, and furnishings should be included in commercial policies so that they are covered in the event of damage, loss, or theft.

If you're a business owner, it's essential that your commercial insurance coverage be as up to date as your business itself. Any gaps in coverage or failure to insure new additions or business property could result in catastrophic losses to the company, wiping out any financial gains achieved through upgrades and improvements. If you have made or are considering upgrades to your commercial property or assets, contact Aegis Insurance & Financial Services to discuss coverage options and changes. Our team of commercial insurance experts can ensure your business is well protected for years to come.

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