This question can have multiple answers, but typically, you use the Replacement Cost to determine your building limits.

Replacement Cost is the amount it would cost to rebuild your building in the event of a total loss. The insurance carrier writing your policy has the final say over what your Replacement Cost should be, often determined by a replacement cost valuator like Marshall & Swift. There are times, like when a building is newly completed, where you may use the construction hard costs to decide on a Replacement Cost.

In either case, your insurance carrier will likely agree if you want to increase your values but may not agree to lower those limits. Also, your values may increase annually due to the rising costs of materials and labor.

General Liability covers bodily injury and property damage to a third party. This can occur on your business’ premises, result from your business operations, or arise from your products or completed operations. There is also protection against libel, slander, defamation, copyright infringement, and similar offenses. If someone sues your business, your General Liability coverage is your first line of defense.

Several things affect how much you pay for insurance. For property insurance, it includes the type of building, what it's made of, where it is, and if it's at higher risk of damage from wind, fire, or other dangers. Fire safety measures, the building's age, and when it was last updated also play a role in determining your costs.

For General Liability, your business’ classification and size are major factors. Carriers classify and rate every type of business differently. This can be measured by area, payroll, revenue, and more.

For all coverages, the loss history of the business or asset is a significant factor. Carriers use a 'loss ratio,' calculated by dividing the amount paid in losses by the premium. Including carrier expenses gives you the 'combined ratio.' Carriers aim to insure profitable risks with a low likelihood of future claims.

We have deep roots in real estate and development, but our commercial expertise spans construction, nonprofit, government contracting, and more. If risk plays a central role in your business, we can help you manage it with clarity and confidence.

Choosing an agent you trust and can partner with is the most important part of purchasing your insurance. To have your business or asset properly rated and covered, an agent needs to take the time to learn about your operations and review the details of your policy. They should also help you make sure your business is correctly classified and that your exposures are accurately represented in the policy.

A good agent should consult with you to discuss all the options available and their benefits or shortcomings—not all insurance is created equal. Additionally, you need an agency prepared to assist you through every step of the process, from initial paperwork to final payout, showing a sense of urgency and an eye for detail every day.

While we’re proud to be part of the Bozzuto family of companies, we operate independently. We serve a broad range of developers, business owners, and organizations across industries and across the country.

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