One of the biggest debates when purchasing commercial building insurance is the offering of replacement cost as opposed to actual value cost. Most insurance agencies recommend purchasing replacement cost insurance.
Coverage under replacement cost insurance pays the cost of replacing your commercial building and all of its contents. The only catch here is that you must insure everything for the value equal to what it would cost if you had to replace it.
Purchasing actual cash value coverage might be cheaper, but you will only be paid out the value of the building or its contents at the time the damage occurred.
Commercial building insurance is important to have, regardless of the coverage you choose. Make sure the insurance policy you choose suits your needs and the coverage is extensive. Keeping your building, property and employees covered is a safe bet.
