Commercial Insurance
Just
as homeowners insurance protects a homeowner from the full cost of repairing
unforeseen damage to a house, commercial property insurance protects businesses,
farms and ranches against damage to their buildings and contents.
Commercial property owners, both those operating a business on their property and those leasing property to another entity, may purchase policies that protect the building and associated structures. A property owner´s policy will not protect tenants from loss. Business owners who lease their property may buy policies that protect the building´s contents, such as machinery, furniture and stored or displayed merchandise.
Different types of commercial property insurance policies protect against different dangers, called "risks," "causes of loss," or "perils." Commercial property policies are not standardized in Texas.
Insurance
companies are free to use their own policies. Policies must contain reasonable coverages
and meet all requirements set out by law. Insurers´ ability to offer
different commercial policies allows them to tailor their products to
fit the needs of particular businesses. The availability of multiple policies
encourages a competitive market.
