South Carolina might be known for its attractive vacation towns of Charlestown and Myrtle Beach, but it is also known to be in a hurricane zone. For any business that is located in a hurricane zone, commercial property insurance is an essential policy to have in your business insurance package to make sure your business can get back on its feet if it experiences a loss.

Fortunately, South Carolina has a variety of independent insurance agents who are experts in business insurance and understanding what businesses across the state need. They can help you put together a commercial property policy that will cover any potential risk at an affordable price. 

What Does Commercial Property Insurance Cover in South Carolina?

The two main types of business insurance are general liability and property insurance. While liability coverage protects you in the event that you get sued, commercial property insurance is designed to protect you in the event of any damage done to your property. In this instance, property includes the following items:

The damage can be caused by a natural disaster or another person, but either way, if it's a covered peril then the cost to repair or replace the damaged property will be covered. When choosing your commercial property insurance, you'll have the option to choose which perils will be covered and not covered. Insurance companies categorize perils as basic, broad, and special, as outlined below:

• Basic perils: Fire, lightning, explosions, smoke, windstorms, hail, riots, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
• Broad perils: All of the listed basic perils plus falling objects; weight of snow, ice, or sleet; water damage (in the form of leakage from appliances); and collapse from specified causes.
• Special perils: Special perils cover any peril, unless it doesn't. Ultimately, when the peril happens the insurance company has to cover it or show where in the policy the event is not covered.

What Doesn't Commercial Property Insurance Cover in South Carolina? 

The category of peril you choose will determine what events will be covered. If you select basic coverage and your roof caves in from a snowstorm, it will not be covered. 

If your property sustains damage from a basic or broad, peril it is your responsibility to show your insurance company that the event is a covered peril in your policy. Special perils work the opposite way. If you have special coverage and experience any event, it is the obligation of the insurance company to show what happened isn't covered, otherwise, it is covered. 

Your commercial property insurance also will not cover flood damage, mechanical breakdown, electrical injury, or indirect losses such as loss of business income. All of these are covered by other insurance. For South Carolina business owners, it's important to understand that flood coverage is not included in commercial property insurance policies, seeing as the state is located in a hurricane zone.

How Much Does Commercial Property Insurance Cost in South Carolina?

The cost of a commercial property policy in South Carolina will depend on a variety of factors about your business. Some of these include:

• Location of your business
• Size, age, and condition of the building
• Loss settlement option (replacement cost, actual cash value, functional replacement cost)
• Value of the building
• Value of your business’s personal property
• Location and cost of building supplies in your area
• Nature of the business and building

Your independent insurance agent can discuss different ways to lower your premium costs, which may include bundling or opting for a higher deductible. 

Who Needs Commercial Property Insurance in South Carolina?

Even though commercial property insurance is not required by law, nearly every business can benefit from having it. Whether or not you own the building your business is in, chances are you own the furniture and other items inside that building. All of these things are included in commercial property insurance. 

For South Carolina business owners, if you're located anywhere from the Upstate to the coast, you'll definitely want to invest in commercial property insurance. This is because your property is at risk of being damaged by tornadoes, flooding, hurricanes, tropical storms, and snowstorms.

How Is Commercial Property Insurance Calculated in South Carolina?

It's a common belief that property insurance is calculated based on square footage, which is part of the equation, but there is more that goes into the calculation than the size of your property. Insurance companies take the following factors into consideration when determining commercial property insurance.

• The value of the property: The replacement cost or cash value of your property.
• The location of the property: There's a big difference between being on the coast vs. inland.
• The construction of the building: Is the building made of wood or steel? How will these materials hold up against common damage-causing events?

In addition to these factors, businesses in South Carolina will most likely be evaluated for their wind resistance, because the state is in a hurricane zone. Insurance companies will inspect to see if your business meets windstorm insurance specifications.

Is Theft Covered under Commercial Property Insurance in South Carolina?

Employee theft costs US businesses nearly $50 million a year. It's a serious crime that many businesses have to deal with. Small businesses in particular are extra-susceptible to employee theft. It can be covered under commercial property insurance, but only if you select the special, all-risk coverage option when you're selecting your plan. If you choose the basic or broad peril coverage, theft will not be covered.

South Carolina business insurance stats

• Number of small businesses in South Carolina: 418,031
• Number of people employed by small businesses in South Carolina: 794,711
• Total amount of commercial insurance claims in South Carolina: $5,928,911,00

How Can a South Carolina Independent Insurance Agent Help?

South Carolina is a unique state in that location plays a major factor in making sure your business is protected. A business located near the Sea Islands will need a different insurance package than one located in Greenville. Fortunately, a South Carolina insurance agents is an expert in all things insurance, no matter where your business is located.

They know the right questions to ask you and insurance companies to ensure that you're getting the best insurance options. They also know the South Carolina insurance market and can serve as a liaison between you and the insurance company.  Should your property be damaged during a covered peril, your independent insurance agent can help you activate and use your commercial property policy and make sure you're getting the coverage you're paying for.