Commercial Building Insurance In Arkansas: What Are My Options?

Commercial building insurance isn’t just a smart move for business owners in Arkansas – it’s a must-have to protect your business assets. Building insurance provides financial security by preventing large out-of-pocket expenses that could really hurt your business. It also fulfills legal requirements: Many banks require insurance if you're looking to get a business loan, and depending on your industry, some clients might refuse to work with you if you don’t have it.

Most importantly, having commercial property insurance gives you peace of mind. You can focus on growing your business without worrying about taking a big financial hit if disaster strikes.

Understanding Arkansas’ Unique Challenges

With unpredictable and sometimes harsh and destructive weather conditions, Arkansas faces unique challenges when it comes to commercial building insurance. The right insurance coverage helps you bounce back and keep your business running smoothly, even if one of these Arkansas weather events happens:

• Tornadoes: Arkansas is near Tornado Alley, a U.S. region prone to frequent tornadoes. Tornadoes can significantly damage buildings and result in loss of life.
• Hailstorms: Hailstorms happen often in Arkansas and can cause extensive damage to roofs, windows, and vehicles. Hailstones vary in size, but can reach the size of golf balls or even larger.
• Severe thunderstorms: Thunderstorms can bring strong winds, heavy rainfall, lightning, and hail. Thunderstorm-related wind damage includes downed trees, power lines, and structural damage.
• Flooding: Heavy rains lead to flash flooding, especially in regions near rivers. In fact, 2019 saw historic flooding along the Arkansas River, and in 2023, the Poteau River rose 15 feet after heavy rains. Flooding can cause significant water damage to a business.
• Winter storms: Arkansas has both ice storms and snowstorms, especially in the northern part of the state. Ice and snow can damage roofs, freeze pipes, and down trees and power lines. Many residents likely remember the ice storm of 2009, which caused more than $1 billion in damage or Winter Storm Uri in 2021.

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Types Of Coverages Arkansas Business Owners Need

From natural disasters like floods and tornadoes to everyday risks like slips and falls, having comprehensive commercial insurance can protect your business from unexpected financial setbacks. Here’s what you may need in Arkansas.

Commercial Property Insurance

Commercial property insurance covers the physical assets of your business, including the building, equipment, inventory, and furnishings. This type of insurance protects you from losses due to events like fires, theft, vandalism, and certain natural disasters, helping you quickly repair or replace damaged property and minimize downtime and financial losses. For Arkansas businesses, where weather-related damage is a real concern, having robust commercial property insurance ensures you're prepared for the unexpected.

Premises Liability Coverage

Any business that welcomes customers, clients, or visitors onto its property needs premises liability coverage, also called general liability. Liability insurance protects you if someone is injured on your premises or if their property is damaged. For example, if a customer slips and falls in your store, liability insurance helps cover medical expenses and legal fees if they decide to sue. In Arkansas, where icy winters and severe weather can create hazardous conditions, having premises liability coverage is essential to protect your business from costly lawsuits.

Flood Insurance

Standard commercial building insurance has exclusions, or things that aren’t covered, and flooding is usually one of them. Many businesses in Arkansas will need to look into a separate flood insurance policy. This insurance covers the cost of repairing or replacing property damaged by flooding, including the building itself and its contents. Given Arkansas's vulnerability to heavy rains and flash floods, especially for businesses near rivers, having flood insurance ensures that you can recover quickly and fully.

Wind Deductible Buyback Insurance

Standard insurance policies often have high deductibles for weather-related damage, including wind damage. Wind deductible buyback insurance is a specialized policy that lowers the out-of-pocket expenses you have to pay before your insurance kicks in. Essentially, it supplements your primary insurance policy by covering part of the deductible. It’s a smart choice if your business has limited cash flow and would be financially strained by a large payment. It’s also smart for businesses in high-risk areas that might have frequent claims.

Business Income Insurance

Business income insurance, also known as business interruption insurance, helps cover the loss of income a business suffers after a disaster. This insurance can provide funds to cover operating expenses, payroll, and other costs while your business is closed for repairs. It can even cover relocation costs. Whether it's due to a fire, storm, vandalism, or other covered event, business income insurance helps keep your business afloat during tough times.

Tips For Business Owners

There’s a lot to think about when you’re shopping for commercial property insurance in Arkansas. Follow these tips to get the best coverage.

Get agreed-value property coverage

Agreed value property coverage is a type of insurance where the insurer and the policyholder agree on the value of the property at the start of the policy. Unlike standard policies, which might consider depreciation or market fluctuations, agreed value coverage ensures you’ll receive the full agreed-upon amount, eliminating the risk of coinsurance penalties. You won’t have to worry about being underinsured or the valuation of your building being contested, which provides extra peace of mind.

Find the deductible sweet spot

Your insurance premium is the amount you pay for your coverage. It varies based on your coverage limits, risk level, and the type of coverage. Your deductible is the amount you agree to pay out-of-pocket before your insurance coverage kicks in. Typically, a higher-deductible policy will have a lower premium – but finding the right balance is key for commercial building insurance in Arkansas. Some carriers offer more of a discount than others for increasing your deductible, so it’s always smart to shop around for the best value.

Ask about a bundled business owners policy

A business owners policy (BOP) combines property insurance, liability coverage, and sometimes additional coverages, like income insurance, into a single policy. Bundling property and liability insurance into a BOP often results in lower premiums compared to purchasing separate policies. However, not all carriers offer BOPs, so ask your agent how you can get the best deal.

Best Insurance Carriers For Arkansas Commercial Properties

One of the best tips for commercial building insurance in Arkansas is to work with an experienced and trusted provider. LandesBlosch has worked with these top providers and can help you compare quotes to find the right policy.

CrossCover Insurance Services

CrossCover works with a wide variety of commercial properties in Arkansas. They offer coverage for most building types including warehouses, apartment buildings, vacant buildings, and office buildings. Their coverages and terms are very flexible, and they’re often willing to work with clients when assessing the risk associated with insuring a building.

Chubb

Chubb has been around for over a century and is known for its excellent claims service. They have a fantastic reputation and are financially stable, so you know your claim will be paid. They offer low deductibles and excellent pricing compared to other carriers, however, they do focus on retail, office buildings, and lower-risk businesses.

Travelers

Travelers is another provider with a long-standing presence in the insurance market. They offer competitive pricing for a broad range of properties including commercial properties and apartment buildings. While they may have a higher wind/hail deductible, it is usually fair and in line with the market. Travelers is very good with claims and has been a staple of the market for many years.

Find the right commercial building policy

Arkansas faces some unique risks that insurance providers and business owners both need to think about when writing and buying policies. LandesBlosch has worked with the top insurance providers for decades, helping Arkansas business owners like you find the right policy for the right price. Contact us today to get quotes from the top companies who insure commercial buildings in Arkansas.