Shopping centers are hubs for communities and provide convenience as there are several different types of businesses within close proximity. In addition, ample parking is generally available, making it easy to come and go. However, it is for both of the above reasons that you must choose your shopping center insurance carefully.
Strip Mall: Outdoor shopping centers with an open parking lot.
Enclosed Mall: Indoor shopping centers.
Office Above Retail: Typically outdoor shopping centers with a second story used for offices.
Multiple Tenants: Differing tenant types means that there are several different sets of risk factors that can lead to damage/losses to your shopping center. From kitchen fires in restaurants to overloaded circuits in tanning salons it is important to know who your tenants are, and what the are doing so that you can protect your property properly.
High Foot Traffic: The more foot traffic the better when it comes to shopping centers, however this also leads to risk. Patrons of your shopping center can name you as a party to any lawsuit as a result of their injury on premises, so it is important to identify the risk factors and reduce them through proper risk management and shopping center insurance.
Vacancy: Vacancy is a challenge for shopping center owners not only because of lost rents, but because of theft and vandalism. The recent spike incopper theft means that unoccupied units are a perfect target for vandals and thief. Most insurance policies have a vacancy clause, meaning that if over a certain percentage of your building is unoccupied (this will be listed in your specific policy) then there will be limited coverage. Luckily special insurance policies exist for shopping centers with high vacancy rates. By working with one of our agents, you will be able to identify the appropriate shopping center insurance policy to suit your needs.
General Liability: General Liability is a typical policy coverage included in shopping center insurance policies that protect against liability claims for bodily injury and property damage arising out of the premises. Usual claims filed against shopping center owners are for slip & falls and other injuries sustained at the location. Entry limits are often $1,000,000 per occurrence and $2,000,000 aggregate, and can be increased with excess or umbrella insurance policies upon your request.
Building: This covers the structures as recorded on the declarations of the insurance policy. The insurable value of the shopping center building is based on the cost to rebuild the structure as calculated by many factors including; existing appraisals, cost evaluator software, and client requests. The building coverage of your shopping center insurance policy will more than likely account for the largest portion of your premium. Certain policies include fixtures as well, which are permanently attached business property items. Always read your policy carefully as coverage can vary.
Business Income: Business Income Coverage for the owners of shopping centers helps to protect against loss of income as a result of a loss or damage due to a covered peril. The coverage will be for the time while the apartment building is being repaired subject to time limits or dollar expense as listed in your policy. It is important to keep accurate accounting of your expenses as well as rental receipts as this information may be requested when determining claims payments.