Buying a new building, or property to build on, is a major undertaking for most businesses. Significant time and effort is spent to find the right property, in the right area, with the right financing, and then to vet the chosen property with proper legal and environmental reviews. The party often left out of this decision making process is the company’s insurance broker. Unfortunately, this omission can make the difference between buying a good risk or a bad risk that will be expensive or even impossible to insure as is. If you’re thinking of buying a new property, call your HUB broker early in the process to get their expert advice before it’s too late.
Not all sprinkler systems are created alike.
It may be very tempting to buy a building that already has a sprinkler system but if the system is not designed for your operations you may face expensive upgrades or end up paying higher insurance premiums. A consultation with HUB Risk Services before closing the deal can save you money by confirming either the adequacy of the sprinkler system as is or the ease of making changes to suit your needs.
Four walls and a roof are all that I need!
That need may sound simple but if the walls and roof you choose include wooden construction you may find yourself paying higher premiums or have difficulty obtaining insurance without installing sprinklers. HUB Risk Services can pre-evaluate a building or future building plans to ensure there are no structural issues that will impact on future insurance costs.
But, being beside a river adds value to the building!
That may be true but a river can also add water to a building in the event of a flood. If a building is located in a flood zone – which can extend kilometers away from a river or other flood source – you can expect your insurance premium and deductible to be higher and your policy may exclude damage caused by flooding. HUB Risk Services can again come to the rescue by pre-evaluating your chosen property to ensure it is not in an area prone to natural catastrophes such as flood, earthquake, wildfire, high wind, hail, etc. When buildings are located in these areas, we can help reduce the risk with appropriate mitigation plans.
Land is cheaper out in the county!
Moving a business to a small community has its advantages but may also increase your risk. For example, out in the county, fire fighting resources such as a full time, professional fire department and hydrants located within reach of your building may not exist. This will increase your insurance costs. Ask your HUB broker and HUB Risk Services to help you evaluate the pros and cons.
Changing your building? Consult HUB before you start.
Before you make changes to your new or existing building that include any of the following get HUB involved.
- Adding a flammable liquids room
- Adding machinery with hydraulic equipment
- Changing what you store or how you store it
- Changing operations, including renting out part of your facility to a tenant with different operations
- Adding dust collection or operations that require dust collection
- Spray painting operations