Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 27, 2013

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Buying commercial real estate is a major financial investment. And, you will want to protect your business venture as much as possible. Various types of insurance coverage are available to you, but especially consider property insurance, liability insurance, and workers’ compensation insurance to avoid major financial loss. 

Commercial Real Estate – Property Insurance

Property insurance generally covers your building and its contents from fire, theft, flood, and other natural disasters. This coverage is a necessary protection to insure your equipment, computers, and inventory as part of your business.

Commercial Real Estate – Liability Insurance

General liability insurance covers bodily injury and property damage liability allegedly sustained by third parties. This essential insurance for your financial health provides coverage which protects your business if someone sues you for negligence. You especially want to carry this insurance if customers frequent your commercial property. You might also consider adding professional liability insurance, also known as errors & omissions insurance to protect you from accidental mistakes for failure to or improperly rendering professional services that cause injuries.

Commercial Real Estate – Workers’ Compensation Insurance

While liability insurance covers injuries to customers and other visitors on your commercial property, workers’ compensation insurance covers injuries to employees who are injured on the job. Employees give up their right to sue your business for negligence from work-related injuries in exchange for wage replacement and medical benefits. Many states require businesses to carry workers’ compensation insurance and have stiff penalties for non-compliance. So check with a licensed labor attorney to be sure you have the appropriate amount of coverage. You might also contact your state employment department.

Getting Help with Your Commercial Real Estate Purchase

An insurance broker can assist you in getting the best deal on your insurance needs by reviewing quotes from a number of insurance companies. An attorney specializing in commercial real estate can save you time and help you fully understand the laws and regulations that govern your insurance premiums.