There are different forms used in covering commercial properties. The form indicates the types of coverage which can be executed to mitigate normal loss on property and business income because of distraction in operations. Coverage can be issued as separate or included as bundle with other different coverage.

Builder’s risk coverage insurer real property while under construction. The coverage is written depending on owner ship of the building during construction; hence, the policy owner can be the contractor or the owner of the building. The coverage is not intended to cover completed building and ceases when policy expires or is canceled, builder’s interest ceases, the property is abandoned, and after specified time period when the building is occupied in part or in whole, or after it is put in the intended use or after construction and specified time is over.

In order to sustain operation and safe guard the business against the unpredictable cash drainage likely to cause distraction on working capital, a business can escape the unpredictable stress of extra expenses while restoring back operation because of property loss. Extra expense coverage is the tool which will cover any necessary costs incurred during restoring period. Since interruption of operation means loss of revenues, a business can combine extra expense coverage with business income to provide coverage for the loss of revenue due to the occurrence of a covered peril. Business income coverage is used to cover loss of income due to suspension of business operations because of a covered peril.

Business renting premises with a lease agreement which is less than the market value can acquire leasehold interest coverage. The policy pays for the difference between the market value and the lease agreement when the insured is forced to relocate the business to a different location because of building damage from occurrence of a covered peril. For example, if the insured has 36 months lease agreement with a monthly rent of $ 2,000 and the insured is forced to relocate the business because of damages caused by a covered peril, if the rental market value of the new building is $ 3,000, the insurance will pay $ 1,000 difference between market value and the lease for the remaining months on the lease agreement.

To cover property of others such as property in care of business, direct loss or damage including loss of use, a business can acquire legal liability coverage. The insurance applies if the insured negligently caused damages to property of others.

A business should weigh its financial stability to determine how long it can be able to hold on operation after unpredictable shakes the cash flow operations. Businesses which do not have an emergency fund ought to consider coverage to ensure continuation of operations after occurrence of loss.