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Multi-Peril
Commercial Property Quote Request Form
(*
Indicates a required field)
All information provided will be regarded as strictly
confidential, and will be used only to secure an
accurate quotation for insurance coverage.
Named Insured:
General Information:
* Business Name
Type of Business :
*Contract
-
Full
Name:
Describe Operations :
*
Title / Position:
Business Model:
*
Employers Federal
Tax Id # (FEIN)
Select Type Coverage Below That You Would Like
Us To Quote:
*Contact
Phone:
Cell #
Business Owners Policy :
Building / Contents / Liability
Flood Insurance :
Building / Contents
Workers Comp:
Fidelity/Surety Bond
*Fax:
Commercial Auto: Cargo / Freight
Heavy Equipment
Marine
(Inland/Ocean)
Web Site Address:
General Liability:Umbrella
Liability:
Professional Liability :
Other -
Please specify or describe:
*Email:
*Send
Quick Quote By : Email
Fax
Both
Current Insurance Carriers Name :
Expiration Date:
*Business
Address:
Address:
City:
State:
Zip :
County:
Mailing Address:
Same
as Mailing Address
Address:
City :
State:
Zip:
County :
Business Information:
Years in Business:
Total Number of
Employees:
#
Full Time:
#
Part Time:
Approx. Annual Gross Sales $
Approx. Annual Payroll $
Property Coverage Limits Requested:
*Replacement
Cost Coverage
Building
(Structure)
Business Personal Property
(Contents)
*Requested
Effective Date:
*
Building Coverage Limit $
*Business
(Contents) Personal Property
Limit $
*Deductible
$
*Wind/Hail
Deductible$
Property
of Others $
Computer Equipment $
Mechanical
Breakdown
(Ac/Heater/Boiler)
Computer Software $
Off Premises Coverage $
Building Glass $
Business Interruption
Coverage $
Extra
Expense Coverage $
Sign
Coverage $
Money & Securities Coverage $
Ordinance
or Law Coverage
$
Accounts
Receivable Coverage $
Spoilage Coverage $
(Perishable
goods)
Valuable Papers Coverage $
Utility Services -
Direct Damage
$
Utility Services -
Time Element Coverage
$
Backup
of Sewer $
Law
Library $
Liability Coverage Limits -
Complete This Section If Requesting Liability
Insurance Protection
*General
Liability $
Employee
Dishonesty Coverage $
*
Medical Payments $
Forgery
& Alteration Coverage $
*Property
Damage Deductible $
Employee
Benefits Liability $
*Fire
Legal Liability $
Garagekeeps
Coverage $
Host
Liquor or Liquor Liability $
Hired or Non-Owned Auto Liability $
Locations:
Check Here If You Have
More Than 1 Location
( Please resubmit this form for each
additional location &- indicate location # 2
, # 3 , # 4 ect in location box )
What
is the maximum amount of cash money left at
any location overnight ? $
Loss
History Information:
*Has
your business had any losses or filed a
claim in the last
five (5) years?
YesNo
If "Yes" Please Briefly Provide Details (
amount paid / carrier / policy # /
date of loss or claim / nature of
claim / pending or settled)
General Underwriting Information:
1. Is your business a
subsidiary of another entity, have any
subsidiaries, own, or operate any
other business ?YesNo
14. Any tax liens, law suits, or bankruptcy within 5 years?YesNo
2. Is a written safety program in
operation?YesNo
Most Insurance Companies require any
insured business owners to provide
written proof at time of application
and at each annual renewal that their
firm maintains a written safety manual
and documentation that the your firm
conducts weekly employee safety
meeting.
15. Do any
tenants in this building engage in
operations having severe
fire hazards including, but not
limited to the following: a)
processing or manufacturing of
products with severe fire hazards; b)
woodworking or
spray painting; c) metal working or
welding; d) commercial cooking
operations?YesNo
3. Any exposure to flammables,
explosives ,chemicals
YesNo
16. Are company athletic teams
sponsored, social events, seminars,
business special events ?
YesNo
4. Any catastrophe exposures ?
YesNo
17. Any sales or distribution of
Imported Products? YesNo
5. Are you currently insured for other
types of coverage with an
insurance our agency is quoting to
you?Yes
No
18. Are any vehicles leased or rented
by your business to others?YesNo
6. Any policy or coverage declined,
cancelled, or non-renewed during the
prior 3 years?
YesNo
19. Is employee health plan provided?YesNo
7. If your business is franchised name
franchise:
20. Do you require vendors,
subcontracts, janitorial services,
lawn care services,
or sub-let tenants to provide evidence
of insurance ?
YesNo
8.. Does your business provide
services to the healthcare, aircraft,
space, or transportation industry ?YesNo
21. Do you lease employees to or form
other employers?YesNo
9. Is all machinery & equipment modern
(<15 yrs old) and well maintained?
YesNo
22. Does your business have past,
present, or planned activity involving
the
storing, treating, discharging, or
applying any hazardous materials?
YesNo
10. Is there a contingency plan for
replacement of production building
machinery
( AC / Heater / Boiler ) in event of
loss due to mechanical breakdown?
YesNo
23. What percentage of work is
preformed away from you business
premises:
%
11. Check appropriate box if your
business has :
Delivery
Service
Delivery
Of Goods Sold By Others
Delivery
Of Goods Sold By Your Business
Metal Welding
Employees
use their own vehicles on company
business
24. Does you business currently have
Professional Liability coverage?
YesNo
12. Do employees travel out of USA ?
YesNo
25. Enter % of operations that involve
:
Installation -Service - Repair
%
Retail Sales Of Used
Equipment/Merchandise
%
Rental Of Equipment/Hardware
%
13. Any employees with physical
handicaps?YesNo
26. If your business has been previous
insured under a Business Owners Policy
how long has policy been inforce with
out a lapse/break in coverage?
If you answered " Yes
" to 1 through 26 above please indicate
question # with briefly details ?
Additional Comments/Remarks
You Wish Us To Consider Preparing Your Quote:
Submission of quote request form
to Hemphill Insurance Agency does not constitute
a binding confirmation of new or revised
insurance coverage. To confirm binding or
current policy revisions you must receive a
written confirmation for any new or change
in coverage from our agency staff.
Commercial Property Insurance
Introduction
Commercial property insurance helps businesses, including farms and
ranches, pay to repair or replace buildings, associated structures, and
contents damaged by fire, storms, theft, and other events outlined in the
policy.
This publication provides general information about the kinds of
commercial property coverage that are available in Texas. It can help you
evaluate different commercial property policies, understand how rates are
determined, and ask the right questions when shopping for insurance. You
should review your policy carefully to understand your specific coverage.
Overview
Business owners who either own or lease their buildings may purchase
commercial property insurance. It’s important for a tenant business to
understand that the building owner’s insurance policy will generally only
cover the building or structure, not the contents of the building belonging
to the tenant. Tenants should purchase their own policies to insure their
on-premises property, such as machinery, furniture, and merchandise. An
insurance company will evaluate factors such as a structure’s location and
construction materials to determine the likelihood of a property loss. The
cost of tenant coverage will generally be significantly less than for owned
property coverage because the policy will only apply to the leaseholder’s
on-premises property and not the building.
Typically, businesses operating on multiple premises are covered by a
single policy. In certain instances, such as when two business locations
serve different functions and have different risk profiles, separate
policies may be needed. This may be the case when a business insures both an
office location and a factory, for example.
A commercial property policy may pay based on either the “actual cash
value” or “replacement value” of a loss. An actual cash value policy will
pay only the amount of the property’s worth at the time of the loss Worth
is determined by the value of the property minus depreciation due to age and
normal wear and tear. A replacement value policy will pay to purchase new
property of like kind and quality after a loss. In general, a replacement
value policy better ensures that a business can fully recover after a
significant loss. Replacement value policies are typically more expensive
than actual cash value coverage because the policy limits should reflect the
cost to replace damaged property with new property.
Almost all policies have a “deductible,” which is an amount the business
must pay out of pocket toward the cost of a claim before the insurance
company will pay. Generally, the higher a policy’s deductible, the lower its
premium will be because the policyholder is accepting a greater share of the
cost of any eventual claims. Most policies will also include a “policy
limit,” which is a maximum amount the insurer will pay toward any covered
loss.
Insurers use a process called “underwriting” to evaluate the likelihood
that a given policyholder will file a claim for a loss. The greater the
likelihood, the higher the premium will be. If an insurer determines that a
business poses too great a risk of a loss, it may decline to issue a policy
entirely. If your business is declined for coverage, keep shopping;
companies have their own criteria for determining whether to issue coverage
and the rate to charge. If one company turns you down or is too expensive,
another may be willing to issue coverage or offer a lower premium. There may
also be certain steps your business can take to lower its risk and either
qualify for coverage or get a lower rate.
Different types of commercial property policies protect against different
risks, or “perils.” It’s important to understand which types of losses a
policy does and does not cover. A commercial property policy will almost
never cover any loss that is either not specifically included in the policy
language or is specifically excluded. Therefore, be sure you read a policy
carefully before you purchase it. You may need to buy certain specialized
policies, such as flood, windstorm, or crime coverage to be protected from
those particular losses.
Commercial property insurance is not standardized in Texas. Insurance
companies must comply with minimum requirements but have a great deal of
flexibility to develop their own policies. As a result, the coverage
provided by one insurer’s policy may differ substantially from that of
another. When shopping for commercial property insurance, be sure to
evaluate the costs and coverages of the policies you’re considering.
Common Commercial Property Coverages
Commercial property policies in Texas generally fall into one of three
categories:
Basic form policies typically cover common risks or
perils, such as damage caused by fire, lightning, vehicles, aircraft, or
civil commotion. Most basic form policies also cover damage from
windstorms, except in counties on the Texas coast, where businesses will
likely need to purchase a separate policy for windstorm protection.
Broad form policies typically provide basic form
coverage plus coverage for additional perils, such as water damage,
structural collapse, sprinkler leakage, and losses resulting from ice,
sleet, or weight of snow.
Special form policies cover against all types of
losses except those specifically excluded by the policy. Common special
form exclusions include losses resulting from flood, earth movement, war,
terrorism, nuclear disaster, wear and tear, and insects and vermin.
Additional coverages
Many business owners buy additional coverages. Some are available as
separate policies, and others are available as endorsements, or “riders,”
that enhance or amend a policy’s base coverage. Generally, adding
endorsements to a policy will increase your premium. Ask your agent about
these additional coverages:
Liability insurance. Protects against the cost of
lawsuits and possible court judgments.
Business interruption coverage. Pays for actual or
projected income lost when a covered peril prevents normal business
operations. Coverage forms can be added to a commercial property policy
that provide only business income coverage, only extra expense coverage,
or a combination of both in the same form.
Extra expense coverage. Pays any added costs a
business may incur resulting from the need to expedite the return to
operations after a covered loss.
Building occupied by the insured. Covers a building
that the insured regularly uses but does not own. This endorsement can be
important if a business leases or borrows a building that’s critical for
operations.
Newly acquired or constructed buildings. Most
commercial property policies allow the insured to add newly acquired
property to their policies within a certain time period. If the insurance
company is not notified within the time period, typically 30 days, the
coverage will not apply. Commercial property policies generally only cover
buildings named in the policy.
Property off premises. Property located within a
covered structure is generally covered by a base policy. Damage to
property located off premises may not be covered, or may only be covered
to a limited extent. Coverage for off-premises property can often be
purchased as an endorsement to the base policy or as a stand-alone policy.
Personal property of employees while at insured premises.
Generally only property owned by the insured entity is covered, unless
this endorsement is added. A coverage extension in the base policy might
provide a limited amount of coverage for personal effects and property of
others.
Valuable papers coverage. Assigns a value to records
or other essential information that could be lost. Papers are typically
covered only to a limited extent by the base policy.
Ordinance or law coverage. Provides an additional
amount to cover the increased cost of construction necessary to comply
with building codes that might be triggered after a covered loss damages
the insured property. This coverage can be added by endorsement, but the
base policy might contain a limited benefit.
Boiler and machinery coverage. Boilers, air
conditioning units, compressors, steam cookers, and electric water heaters
are examples of machinery typically covered by this endorsement. Coverage
generally extends to specifically listed machinery and any subsequent
losses that result, such as when a boiler explosion or water heater leak
causes damage to other property. This coverage may also often be purchased
as a separate stand-alone policy.
Coverage against Crime
There are several types of policies that can protect a business from
losses resulting from crime. Policies may be issued on a “loss sustained” or
“discovery” basis. Loss sustained coverage pays for losses that occur during
the policy period, while discovery coverage pays for losses that occur at
any time. Both types require that losses be discovered during the policy
period or extended reporting period. Common crime coverages include:
Loss of glass and money due to theft pays for damage
to glass and any loss of money resulting from a break-in.
Robbery and safe burglary, property other than money
is a more limited form of coverage that does not include money or
securities.
Forgery or alteration protects a business against
forgery or alteration of checks, drafts, promissory notes, or other
directions to pay.
Theft, disappearance, and destruction coverage
insures money, securities, and other property against loss, both on
premises or in the custody of an employee or messenger while off premises.
Commercial Multi-Peril Policies
Commercial multi-peril (CMP) policies combine one or
more coverage forms, such as commercial property, general liability, inland
marine, crime, or commercial auto, in a single policy. A business owner
could add other types of coverage to ensure full protection within the
convenience of a single policy.
Business owner programs (BOPS) are a common form of
commercial multi-peril policy. BOP policies are tailored to the needs of
small-business owners and combine property and liability coverage in one
policy.
Some companies may include flood coverage in their commercial property
policies for areas with a low flood risk. However, most flood insurance in
the United States is administered by the National Flood Insurance Program
(NFIP).
To qualify for NFIP coverage, a business must be located within an
NFIP-participating community. These communities have adopted federal
building and floodplain management programs aimed at reducing the likelihood
of future flood damage. “Special Flood Hazard Areas” are high-risk areas
within NFIP communities that are a more likely flood risk. The NFIP requires
all structures within these areas to have flood insurance. Because 25
percent of all floods occur in areas designated as low-to-moderate risk,
even businesses outside hazard areas could benefit from flood policies.
Flood insurance is purchased through designated private insurance
agents.. To get a quick quote click here call 1-800-361-8734.
Insurance companies usually exclude windstorm protection from commercial
property policies for businesses located in one of Texas’ 14 coastal
counties or within certain areas of Harris County. Property owners in these
areas will have to buy windstorm coverage through the Texas Windstorm
Insurance Association (TWIA).
TWIA is a “pool” of all property and casualty insurance companies
authorized to write coverage in Texas. The insurers share the claims risk
for structures located in areas with a high risk of windstorms. Buildings in
these areas constructed, repaired, or remodeled prior to January 1, 1988,
are automatically eligible for TWIA coverage. Those constructed, repaired,
or remodeled after that date are required to pass a state inspection and
receive a Certificate of Compliance, Form WPI-8, before windstorm and hail
insurance coverage can be issued through TWIA.
If a business notifies its local Windstorm Inspection Field Office before
beginning construction or repairs, a TDI inspector may be able to perform
the inspection free of charge. The inspection will be scheduled for sometime
during the course of the work. If the business requests a windstorm
inspection after construction or repair work has started, the inspection
must be performed, for a fee, by a Texas-licensed professional engineer
approved by the Commissioner of Insurance. A list of professional engineers
approved to do windstorm inspections is available on the TDI website and is
also available at local TDI Windstorm Inspection Field Offices.
How Commercial Property Rates are Determined
Fire risk is typically the primary factor that determines a policy’s
premium. Accordingly, a business with neat, orderly grounds and good fire
protection will likely have a lower premium than a business with debris
piled next to buildings and little or no fire protection. The type of
business also is an important factor. For example, an explosives factory
would almost certainly be deemed a higher fire risk than a travel agency.
Fire risk is assessed according to a formula to determine the structure’s
“fire rating.” The complex formula weighs many factors to determine the fire
rating, which largely determines the property’s premium rate.
The fire rating is determined through a physical inspection of the
property by a state-licensed fire inspector. Fire inspectors are typically
contracted by insurance companies to perform inspections as part of the
underwriting process. Inspectors are required to use a standard rating
system to determine fire ratings. The five criteria used are:
Construction materials. Buildings made of potentially
combustible construction materials will likely have higher premiums, while
those made of fire-resistant materials could earn a discount. Additions to
an existing structure may negatively impact a fire rating, so it’s a good
idea to consult with your agent or insurer before remodeling. Internal
structural elements can also impact a fire rating. Using wood partitions,
floors, and stairways in an otherwise fire-resistant building will likely
nullify any rate reduction, whereas fire-resistant interior walls, floors,
and doors can help preserve a good fire rating.
Location. Buildings located in cities or towns with
good fire protection , as assessed by the Texas Commission on Fire
Protection, typically cost less to insure than buildings outside of a
city, where fire protection may be limited.
Occupancy. The nature of a building’s use also
impacts its fire rating. An office facility will likely rate favorably,
provided that it contains little equipment that could start or feed a
fire. A restaurant – with grills and ovens – or an auto repair shop will
likely rate less favorably than an office. It’s important to remember that
one relatively hazardous occupant will negatively impact the fire rating
of an entire building. If your business is in a building with a more
hazardous occupant, your premiums will be higher than they would be for
your business alone.
Fire protection measures. Automatic sprinklers can
reduce a building’s fire rating by as much as 50 percent. Buildings with
fire extinguishers and automatic alarms and those located within 500 feet
from a standard fire hydrant will generally have lower ratings.
Exposure. Nearby hazards increase a building’s fire
risk. Proximity to external fire hazards such as a lumber yard or oil
storage tank will negatively impact a fire rating to an even greater
degree. Internal exposure risks might include cluttered building grounds,
hazards posed by certain types of mechanical or electrical equipment, or
on-site storage of volatile materials.
To learn the fire ratings of the individual structures on your business’
premises, ask your insurance agent. Your agent can access a statewide
database of the ratings for all commercial properties. If you disagree with
the rating assessed for any building your business owns or leases, first try
to work with your agent, insurance company, and the inspector. If you are
still dissatisfied, contact TDI’s Inspections and Fire Safety Office, the
state’s final arbiter of disputed commercial property ratings
TDI Inspections and Fire Safety Office
PO Box 149104
Austin, TX 78714-9104 512-322 2259
Shopping for Commercial Property Insurance
One of the most effective ways to save on commercial property insurance
is to begin shopping for coverage before you build, purchase, or lease a
business property. Shopping in advance can help you understand exactly how a
building’s characteristics will impact your premium.
Purchasing a commercial multi-peril policy can be another way to save.
CMP policies combine multiple coverage forms into a single policy, typically
for a lower premium than purchasing the coverage forms individually.
The following additional tips can also help you save money or avoid other
pitfalls when buying a commercial property policy:
Minimize all possible risks before applying for coverage.
Examine your business carefully for factors that could contribute to the
likelihood of an insurance claim. Improving employee safety, security, and
inventory management can reduce the amount you pay for commercial property
insurance and other types of coverage, such as workers’ compensation and
general liability insurance. Most insurance companies also offer
loss-control or risk-reduction services. Contact your agency or company
for help identifying potential risks and implementing plans to eliminate
them.
Get quotes from several companies. Insurance
companies can have significantly different rates, even for the same or
similar coverages. It pays to shop around. When comparing prices, make
sure you’re comparing policies with similar coverage. Keep in mind that,
while one policy might be cheaper than another, it might also provide less
coverage. In general, it’s best to buy the policy that provides the most
coverage you can afford.
Consider higher deductibles. Higher deductibles can
lower your premium, but remember that your out-of-pocket costs will be
greater if you have a claim.
Help us prevent insurance fraud. To report suspected fraud, call our
toll-free Fraud Hot Line
1-888-327-8818
To report suspected arson or suspicious activity involving fires, call
the State Fire Marshal’s 24-hour Arson Hot Line
1-877-4FIRE45 (434-7345)
Don’t Be Caught Without Windstorm Insurance Coverage! -
After the recent catastrophic hurricane seasons and with many people still
trying to put their homes and lives back together, is your home covered for
hurricane or other windstorm damage so you won’t be the next victim? If you
live in one of the
Texas' coastal counties, then you know how devastating and costly a
storm can be. Don’t let an unexpected storm, like Rita, cost you. With the
latest and most effective wind resistant construction, you will have a
stronger structure and a better opportunity to obtain windstorm and hail
insurance coverage through the Texas Windstorm Insurance Association or the
voluntary market.
Territory
TWIA's
territory includes the following fourteen (14) counties along the
Texas gulf coast and parts of Harris county:
TWIA's territory includes the following fourteen (14) counties
along the Texas gulf coast and parts of Harris county:
Aransas
Galveston
Matagorda
Brazoria
Harris County (partial)*
Nueces
Calhoun
Jefferson
Refugio
Cameron
Kenedy
San Patricio
Chambers
Kleberg
Willacy
*
Part of Harris County - When located inside city limits and east
of highway 146, the following portions of Harris County are also
included:
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