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Non-Residential Building Operators Insurance

Non-residential building operators insurance is a type of commercial insurance designed to protect property owners, landlords, and property managers from the financial losses associated with operating and managing a commercial non-residential property. This type of insurance typically covers property damage, liability claims, and business interruption costs associated with the operation of the property. Additionally, non-residential building operators insurance may also offer coverage for any legal expenses related to defending against claims or lawsuits.

Who Needs Non-Residential Building Operators Insurance? 

Non-residential building operators insurance is designed for those responsible for managing, maintaining, and operating a commercial building. This could be an office building, a retail store, an apartment complex, or any other type of non-residential property. The insurance provides protection against the risks associated with operating a building, such as property damage, bodily injury, and liability claims. Building operators can also be held liable for any damage caused to the building or its contents, as well as any injuries sustained by the occupants. As such, it is important for any business operating a non-residential building to carry non-residential building operators insurance.

Types of Non-Residential Building Operators Insurance 

1. General Liability Insurance: This insurance provides protection from claims and lawsuits related to bodily injury, property damage, and other losses that occur on the premises of the insured building. 

2. Property Damage Insurance: This type of insurance provides protection from losses resulting from damage to the building, its contents, and any improvements made to the building. 

3. Business Interruption Insurance: This type of insurance provides coverage for lost income due to an interruption in business operations caused by an insured event. 

4. Cyber Liability Insurance: This insurance provides protection from claims and lawsuits related to data breaches and other cyber-attacks. 

5. Professional Liability Insurance: This insurance provides protection from claims and lawsuits related to errors and omissions in the performance of professional services. 

6. Directors and Officers Liability Insurance: This type of insurance provides protection from claims and lawsuits related to the actions of the board of directors, officers, and other key personnel.

How Much Does Non-Residential Building Operators Insurance Cost? 

Non-residential building operators insurance typically costs $500 to $2,000 per year, depending on the type and size of the building and the coverage limits. The cost can also vary depending on the location and the number of buildings insured.

Non-Residential Building Operators Insurance Requirements 

Non-residential building operators must have liability insurance coverage for bodily injury, property damage, and personal and advertising injury. This coverage should include premises liability and products and completed operations liability to protect against claims from third parties for bodily injury, property damage, or personal and advertising injury that result from negligent acts, errors, or omissions arising from the building operations. 

The amount of coverage should be determined based on the type and size of the building and its operations. The coverage should also include contractual liability coverage to provide protection from claims from third parties for bodily injury, property damage, or personal and advertising injury that result from the building operator’s failure to perform its contractual obligations. 

In addition, non-residential building operators should also carry workers’ compensation insurance to provide coverage for employees in the event of a workplace accident or injury. The amount of coverage should be based on the number of employees and the risk of injury associated with the building operations. 

Finally, non-residential building operators should consider purchasing umbrella insurance coverage to provide additional protection in the event of a claim that exceeds the limits of the primary liability policies.

Commercial Insurance And Business Industry Classification

  • SIC CODE:  6512 Operators of Nonresidential Buildings
  • NAICS CODE:  531110 Lessors of Residential Buildings and Dwellings
  • Suggested Workers Compensation Code(s):  9015 Building or Property Management – All Other Employees

Non-Residential Building Operators Insurance – The Bottom Line 

Non-residential building operator’s insurance is an important form of protection for those who own or operate a non-residential building. It provides a wide range of coverage, including liability, property damage, and business interruption. It can be tailored to meet the specific needs of your business and can provide financial protection in the event of an accident, natural disaster, or other events that could cause damage to the building or its contents. If you own or operate a non-residential building, it is wise to invest in a non-residential building operator’s insurance to ensure that your business is protected.

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