What are the standard forms of coverage in commercial property insurance?

In commercial property insurance, the standard forms of coverage are classified into three categories: Basic, Broad, and Special forms.

The Basic form offers coverage for specific perils, typically including fire, lightning, and explosion, making it essential for businesses that want foundational protection against common risks. The Broad form expands on this by including additional perils, such as water damage and theft, which can provide a more comprehensive safety net for businesses against various potential losses.

The Special form is the most extensive of the three and operates on an "all-risk" basis, covering all risks of physical loss or damage except for those specifically excluded in the policy. This form is particularly advantageous for businesses looking for extensive coverage since it protects against a broader range of incidents.

Understanding these coverage types helps businesses choose the appropriate level of insurance according to their specific risks and needs, ensuring they are adequately protected against potential losses.