Selling with business insurance in mind

If you sell commercial real estate, include insurance in your final pitch for properties. Many clients don't consider the insurance costs of a building until after the purchasing or leasing process, but it can make a big difference. To get a jump on the competition, use the costs of insuring a commercial building to your advantage. The insurance angle could make the difference between deal and no deal. New building If you sell new buildings, you'll probably have the best luck. New buildings typically cost less to insure because they experience less risk. They haven't undergone the same wear and tear of older structures and therefore can typically better withstand events such as storms or fires. Updated features Even if the buildings you sell aren't new, some newer features could give you some advantage. Some commercial buildings with updated features could qualify for lower monthly premiums. The updated features that could lead to lower rates are: • Electrical wiring: Electrical malfunction is one of the five most common causes of commercial building fires, according to the National Fire Protection Association (NFPA). To reduce risk and encourage safer wiring, insurance carriers typically offer lower rates for professional electrical work. • New pipes: Plumbing can be a huge cause of damage for homeowners and business owners alike. New pipes are less likely to experience buildup and to become blocked by overgrown tree roots or other obstacles. A building with updated plumbing, therefore, typically costs less to insure. • New HVAC system: A faulty HVAC system can cause both water and fire damage and lose money due to energy inefficiency. Commercial buildings with new HVAC systems can not only save money on utilities costs; they also can qualify business owners for lower monthly payments on their property insurance. Fire safety About 500,000 structural fires occur on average every year in the United States. Fires can be incredibly dangerous for both the lives of workers and the livelihoods of business owners. Naturally, fire safety is important in the workplace. Insurers typically offer lower premiums to those commercial buildings equipped with fire safety features such as: • Fire resistant interior floors: In general, more fire resistant materials used in construction (brick, for example) can lead to fewer fires, less damage when they do occur, and a safer work environment. • Smoke detectors and fire alarms: This same discount also applies to residential homes. • Overhead sprinkler systems: Insurers reward business owners who install sprinklers because they can greatly reduce the spread of a blaze. Location The importance of location applies to commercial as well as residential realty. Businesses that reside in neighborhoods with less crime and closer fire hydrants or stations fare best with insurance carriers. Those businesses can earn lower monthly premiums for commercial property insurance. Keep business property insurance in your marketing toolbox. Property insurance costs don't always occur to clients when they tour a property. Use the discounts that certain buildings can garner to your advantage and the only business on fire will be yours. Carrie Van Brunt-Wiley is a community manager at HomeownersInsurance.com, Wilmington, N.C.