Shopping center and strip mall insurance is a form of commercial property insurance that provides coverage for a variety of risks associated with owning and operating a shopping center or strip mall.
This type of insurance typically covers damage caused by fire, theft, vandalism, and natural disasters, as well as liability protection in the case of injuries or property damage caused by employees, visitors, or tenants. Additional coverage may also be available to provide protection against business interruption, tenant disputes, and other issues that can arise when operating a large commercial property.
Who Needs Shopping Center And Strip Mall Insurance?
Shopping center and strip mall insurance is necessary for any business that owns, operates, or leases a shopping center or strip mall. This type of insurance provides coverage for the building itself and its contents, as well as liability protection related to the premises and activities of tenants or customers. It also covers any potential losses due to natural disasters, vandalism, and other perils.
Shopping center and strip mall owners and operators should have this type of insurance in place to protect their investments and ensure that they are adequately insured against any unforeseen losses.
Types of Insurance for Shopping Center And Strip Mall Owners
There are several types of insurance that shopping center and strip mall owners should consider, including:
1. Property Insurance: This type of insurance covers the physical assets of a shopping center or strip mall, such as the building, fixtures, inventory, and signs.
2. Liability Insurance: This type of insurance protects the shopping center or strip mall from lawsuits related to bodily injury or property damage caused by the business’s operations.
3. Business Interruption Insurance: This type of insurance covers lost income and other expenses resulting from a disruption in business due to a covered event.
4. Workers’ Compensation Insurance: This type of insurance provides coverage for medical and disability expenses for employees who are injured on the job.
5. Cyber Liability Insurance: This type of insurance covers losses incurred due to a data breach or other cyber attack.
6. Flood Insurance: This type of insurance covers losses caused by flooding.
7. Product Liability Insurance: This type of insurance covers losses resulting from defects or deficiencies in products sold or services provided.
How Much Does Shopping Center And Strip Mall Insurance Cost?
The cost of shopping center and strip mall insurance depends on the size and location of the property, the value of the buildings, and any additional coverage needed.
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small shopping centers and strip malls ranges from $77 to $159 per month based on location, number of units, payroll, sales, and experience.
Shopping Center And Strip Mall Insurance Risks and Exposures
The primary risks and exposures associated with shopping centers and strip malls include:
1. Property damage: Shopping centers and strip malls are exposed to property damage risks due to fire, theft, vandalism, natural disasters, and other unforeseen events.
2. Liability: Shopping centers and strip malls are exposed to the risk of third-party liability claims if customers or visitors are injured while on the premises.
3. Business interruption: Shopping centers and strip malls are exposed to the risk of business interruption due to natural disasters, power outages, and other unforeseen events.
4. Employee injury: Shopping centers and strip malls are exposed to the risk of employee injury due to slips and falls, as well as other workplace hazards.
5. Tenant disputes: Shopping centers and strip malls are exposed to the risk of tenant disputes due to lease or rent issues.
6. Security: Shopping centers and strip malls are exposed to the risk of security incidents due to theft, vandalism, or other criminal activities.
Commercial Insurance And Business Industry Classification
- SIC CODE: 6512 Operators of Nonresidential Buildings
- NAICS CODE: 531120 Lessors of Nonresidential Buildings (except MiniWarehouses)
- Suggested Workers Compensation Code(s): 9012 Building or Property Management – Property Managers and Leasing Agents & Clerical, Salespersons, 9015 Building or Property Management – All Other Employees
Shopping Center And Strip Mall Insurance – The Bottom Line
Shopping center and strip mall insurance is a must-have for any business that operates within these types of buildings. It provides coverage for the property, the tenants, and their employees, as well as any visitors who may be injured while on the premises.
Shopping center and strip mall insurance can also provide liability coverage for the property owners in the event that someone is injured on the premises. By protecting the property and those who use it, shopping center and strip mall insurance can help to protect your business from costly lawsuits and other unforeseen financial losses.