Nearly half of all small businesses are likely to experience a commercial property claim in their lifetime, with damages ranging from minor to catastrophic. Without the right kind of insurance protection, commercial property damage can be financially devastating, leading to the loss of customers and revenue and in some cases, total business closure. In today's blog post, we look at the three most common causes of commercial property claims, and what companies can do to avoid them to ensure their long-term survival.
Theft & Burglary
According to a recent survey from The Hartford Group, the leading cause of commercial property claims is theft and burglary. Sadly, businesses can be targeted by thieves regardless of size or industry, including retail stores, restaurants, office parks, auto repair shops, and even farms and ranches. Burglars will always find something of value to steal, whether it's electronics, tools, raw materials, inventory, furniture, commercial vehicles, signage, or even financial records. While some theft victims can quickly recover and resume normal business operations, others can be devastated by a burglary and take a long time to reopen, especially if business-critical tools and equipment are stolen. To avoid becoming a victim of theft, businesses need to ensure that all valuables are securely locked up, the property is well lit at night, and that an effective security system is in place to deter thieves.
Another common cause of commercial property claims is water damage, where water ruins the interior and/or exterior of a business as well as other company assets. Water damage can be caused by cracked water pipes, leaky roofs, clogged gutters and drains, or flooding. Even if water doesn't damage valuable commercial assets like electronics, inventory, or tools, it can still lead to extensive repair costs for replacement flooring, carpeting, walls, painting, and plumbing and electrical work. To minimize potential water damage, be sure your business has gutters and downspouts regularly cleared from debris, protect any exposed pipes from extreme heat or cold, and communicate to employees where water shut-off valves are located.
Wind & Hail Damage
Finally, businesses of all sizes and industries can be negatively impacted by wind and hail damage, especially because Texas experiences severe weather throughout the year. Windstorms can lead to roof damage, broken tree limbs, power outages, shattered windows, ruined signage, toppled trees, and property damage caused by flying debris and outdoor materials. Hail damage, while rare, can cause even more devastating damages for commercial properties such as ruined inventory and equipment, structural and roof damage, cracked HVAC systems, and utility outages. To reduce the potential losses caused by windstorm and hail damage, businesses should ensure that trees on the commercial property are regularly pruned, all exterior inventory or equipment is secured under coverings or tied down, and all furniture and décor is anchored to prevent turning into projectiles.
Growing a successful business takes non-stop work and determination, but keeping the business property and assets safe involves proactive steps now that can protect the business in the future. Aegis Insurance & Financial Services helps businesses get the financial security they need to protect what matters most with a full range of top quality Commercial Insurance policies. We offer Business Owners Policy coverage, Commercial Property, Commercial Auto, Workers Compensation, General Liability, Excess Liability, Business Interruption coverage, Commercial Flood Insurance, and much more. Contact Aegis today at 713-850-7622 for more information, or go online to request a free quote!