Commercial Property Insurance: Coverage for Common Water Concerns
Coverage For Common Water Concerns In Commercial Property Insurance
As a commercial property owner, you are likely aware that water leaks are the most common business losses, which includes damaged pipes. While you may be aware of this common problem, you may not be aware that your commercial property insurance policy likely covers the cost of damage and repair. There are actually three distinct circumstances that nearly every commercial policy will cover.
1. Sudden Events
Sudden events refer to any event that was not previously known about, or that could have been prevented with routine maintenance. This means that leaking pipes that are located deep in the walls, that likely would not show up for annual inspections, are probably covered, as is any incurred damage. However, if the leaky pipe is a direct result of negligence on the property owners part, then the repair will not be covered. Insurers are there to protect your interests, but they are not there to defend and correct an owner’s mistakes or intentional neglect.
2. Damage to Fire Suppression Systems
When it comes to fire suppression systems, most policies will cover all damaged pipes. It is understood that fire sprinklers are a necessity for building and worker safety. Additionally, as sprinkler systems are exposed, it is assumed that they can be damaged more easily than other plumbing. While it is still necessary to prove responsible ownership, as long as you have your system inspected annually, your policy should cover any damage. The only way that this may not be the case is if either a property owner or employee maliciously and purposefully damages the equipment.
3. Restoration Work
It is not uncommon for broken pipes to lead to flooding and other structural damage. It is also not unusual for most of this damage to occur behind walls, in ceilings and under foundations. For that reason, many insurers will cover both tear-out and repair. As insurers only provide coverage, it will likely be up to you to seek out and receive estimates from several emergency remediation specialists in the Brunswick, ME, area.
Damaged pipes and water issues are ordinary business losses. However, commercial insurance can alleviate some of that concern and expense.