We Offer
Commercial Property Insurance With Several Leading Insurers
Commercial Property & Casualty
Our "Market Specialists" have proven
expertise and market connections in selected insurance industries or
coverage classifications. Our "Market Specialists " work with our
agency producers & their customers to secure insurance quotes from their "Best of Class" companies.
Please carefully
review the questions and
answers below. Please make any corrections
necessary so as to assure that each
question presented herein has been correctly and
truthfully answered to the best of your
knowledge.
1.Is the applicant a subsidiary of
another entity ?YesNo
24. Sporting or social
events sponsored ?
YesNo
2.Does the applicant have any
subsidiaries ?
YesNo
25. Any structural
alterations contemplated ?
YesNo
3. Is a formal 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.
4. Any exposure to
flammables , explosives, chemicals ?
YesNo
27. Has applicant been
active in or is currently active in
joint ventures?
YesNo
5. Any catastrophe
exposure ?
YesNo
28. Do you lease
employees to or from other employers ?
YesNo
6. Any other insurance
with this company or being submitted ?
YesNo
29. Is there a labor
interchange with any other business or
subsidiaries ?
YesNo
7. Any policy or coverage declined,
cancelled, or non-renewed during the
prior 3 years?
YesNo
30. Are day care
facilities operated or controlled ?
Have any crimes occurred or been
attempted on your premises within the
last three (3) years ?
YesNo
8. Any past losses or claims related
to sexual abuse or molestation
allegations, discrimination or
negligent hiring ?
YesNo
31. Have any crimes
occurred or been attempted on your
premises within the last three (3)
years ?
YesNo
9. During past 5 yrs has any applicant been
indicted for or convicted of any
degree of the crime of fraud, bribery,
arson, or any other arson-related
crime in connection with this or any
other property ?
YesNo
32. Is there a formal,
written safety and security policy in
effect ?
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.
33.. Does the business
promotional literature make any
representations about safety or
security of the premises ?
YesNo
11. Any tax liens, law suits, or
bankruptcy within 5 years?YesNo
12. Has business been placed in a
trust ?
YesNo
Products/Completed Operations
If You Firms Is Requesting Products
or Completed Operations Coverage
Check
Here & Complete This Section
13. Any foreign operations, foreign
products distributed in USA, or US
products sold/distributed in foreign
countries ?
YesNo
1.
Does applicant install, service, or
demonstrate products ?
Yes
No
14. Any medical facilities provided or
medical professionals employed or
contracted ?
YesNo
2.
Foreign products sold, distributed,
used as components ?
Yes
No
15. Any exposure to
radioactive/nuclear materials?
YesNo
3.
Research and development conducted or
new products planned ?
Yes
No
16. Do/Have past, present or
discontinued operations involve
storing, treating, discharging,
applying, disposing, or transporting
of hazardous material ?
YesNo
(e.g. landfills, wastes, fuel tanks,
ect )
4.
Guarantees, Warranties, Hold Harmless
Agreements?
Yes
No
If "
Yes " Please explain in below remarks
/ comments section
17. Any operations sold, acquired, or
discontinued in last five (5) years ?
YesNo
5.
Products related to Aircraft / Space
Industry ?
Yes
No
18. Machinery or
equipment loaned or rented to others ?
YesNo
6.
Products recalled, discontinued,
changed ?
Yes
N
19. Any watercraft,
docks, floats owned, hired or leased ?
YesNo
7.
Products of others sold or re-packaged
under applicant name ?
Yes
N
20. Any parking
facilities owned/rented ?
YesNo
8.
Products under label of others ?
Yes
N
21. Recreation
facilities provided ?
YesNo
9.
Vendors Coverage Required ?
Yes
N
22. Is there a swimming
pool on the premises ?
YesNo
10.
Does any named insured sell to other
named insured's ?
Yes
N
Comments/Remarks
If you answered " Yes "
above questions - please indicate question
# with details ?
Additional
Comments/Remarks You Wish Us To Consider
While 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.
ACORD FILLABLE APPLICATIONS
(These Are Insurance Industry Standardized Underwriting
Forms Accepted By Virtually All Carriers )
#
Name
Description
Fillable Link
1.
ACORD 125
Commercial General Insurance Application
2.
ACORD 140
Commercial Property Section
Download Both Application
Forms To Your System - Complete Each Fillable Application - Print
Insurance Service Office (ISO)
SAMPLE Policy Forms
Note: These Are Sample
Policy Forms That Represent Insurance Industry Standardized Commercial Lines
Policies.
Coverage proposals presented
to you by our Agency may differ; as each insurer represented may offer
modified coverage by endorsement or have filed it's own unique policy forms
with the Texas Department Of Insurance. Please carefully read any carrier
prepared proposal presented to you and where necessary request a copy of
each insurance company policy form presented; so that you may compare any
differences in coverage offered.
Commercial Property Policy " ISO Special Form CP 10 30 04 02
"
(click to view
/ read / print ) - package policy that provides property
insurance coverage for commercial buildings , contents , and loss of income
with several other kinds of commercial insurance coverage into a single multi-peril property
insurance policy.
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:
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, 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.
Sample Policy:
Businessowners Policy- Special Form
(click to view / read / print ) - package policy that
combines property / general liability insurance coverages for commercial
buildings / contents / loss of income with several other kinds of
coverage into a single multi-peril multi-risk insurance 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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