Written by Tom Streek, Owner & Founder of Rebuild Response®.
As devastating as a residential loss is for the insured due to personal content and home space, a commercial loss can create very different stress and challenge.
Commercial property is creating cash flow typically for the owner, so the loss of that creates an immediate problem. A good policy will cover most of the liabilities, but it’s difficult to buy coverage for other related damages.
Loss of clients due to a retail closure of any kind can be a long term “loss” compared to the physical loss of a structure. Ideally, if an alternate place of business is available, it’s often essential to attempt a temporary location.
If it’s merely impossible for the specific business model (ex: a large production site or a multi-unit apartment), then depending on adequate policy coverage is critical.
Early planning and assessment of the loss dictate the rebuild or repair approach, always led by an engineering firm and efficient work from the insurance adjuster. The challenge with a commercial large loss project is the timelines and process. Residential building permits and progress often moves much quicker than a commercial claim when it’s large. Additional procedures and loopholes are required by building and engineering departments typically, and therefore the review and planning/design timelines often take much longer.
Commercial large losses typically don’t have the option to change designs like residential losses. Space, access, and municipal limitations can almost always dictate what is repaired or rebuilt.
Liability is another element of a commercial loss that always needs to be monitored carefully. Safety on the site will be a high priority for the adjuster and insurer.
To summarize, a commercial loss is a unique scenario that requires proper, efficient, and professional attention.
Your builder and insurance adjuster are here to support you through this process. Please don’t hesitate to ask as many questions as you need to gain confidence and understanding. If you have recently experienced a large loss and are looking to rebuild your structure, contact us today!