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Commercial Real Estate Insurance

When it comes to insurance for your commercial property, Horn & Co. Insurance Services can help to protect your commercial property with the proper coverage. Since 1928, the Farmers Insurance Group of Companies has been one of the leading providers of innovative insurance coverages, products and services.

Properties that we insure:

Office Buildings
Retail Shopping Centers
Apartment Buildings
Condominium Buildings and Associations
Mixed Occupancies
Industrial Property

Primary Package Property Coverages

Primary Package Liability Coverages

Premier Package Endorsement Coverages

Optional Coverages

Primary Package Property Coverages

Building Owner’s Special Property Coverage Form:

Special Form is the broadest cause of loss form available. It provides for direct physical of, or damage to, covered property subject to certain exclusions.

Replacement Cost:
Special Form is the broadest cause of loss form available. It provides for direct physical of, or damage to, covered property subject to certain exclusions.

Business Income:
The actual loss of Business Income during the “period of restoration” is paid if it is sustained due to the necessary suspension of your operations caused by direct physical loss, or damage from a covered cause of loss at the described premises. The loss of business income must occur within 12 consecutive months. Business income is defined as net income (before taxes) plus continuing normal operating expenses, but ordinary payroll will only be paid for 60 days.

Personal Property at Newly Acquired Premises:
Up to $100,000 of the insurance that applies to Business Personal Property may be extended to apply to Business Personal Property at any premises you acquire.

Building Owner’s Special Form Computer Coverage:
Pays for direct physical loss or damage to Electronic Data Processing Equipment (EDP), meaning computers and associated peripheral equipment such as printing, or auxiliary functions such as data transmission. EDP recording or storage media such as films, tapes, discs, drums or cells; data stored on such media. Programming records used for electronic data processing or electronically controlled equipment are covered up to 25% of the equipment limit.

Outdoor Sign Coverage:
We will pay up to $10,000 for direct physical loss to all outdoor signs owned by the insured, or others if in the care custody or control, at the described premises. Higher limits are available on the Premier Package and as an optional property coverage.

Pollution Clean-Up:
Pays up to $10,000 on primary and $25,000 on premier for expenses incurred to extract pollutants from land or water at the described premises, which is caused by or resulting from a covered cause of loss. Up to $50,000 is available as an optional property coverage.

Outdoor Property:
Up to $2,500 (not more than $500 for any one tree, shrub or plant) of the property coverage provided may be extended to apply to outdoor fences, radio and television antennas (including satellite dishes), signs (other than signs attached to the building), trees, shrubs or plants, resulting from, fire, lighting, explosion, riot or civil commotion, or aircraft.

Personal Property Off Premises:
Provides up to $5,000 to cover Business Personal Property while it is in the course of transit or temporarily at a premise you do not own, lease or operate.

Fire Department Service Charge:
Pays up to $1,000 for the service charges incurred when the fire department is called to save or protect covered property.

Crime Conviction Reward:
Pays up to $5,000 for information leading to an arson conviction regarding loss or damage to covered property.

Fire Extinguisher Recharge:
Pays up to $2,500 for the necessary cost to recharge or replace fire extinguishers used to extinguish a fire at the described premises.

Primary Package Liability Coverages

Premises Operations:
Coverage of all sums, up to policy limits, hich the insured shall become legally obligated to pay as the result of bodily injury or property damage caused by an occurrence and arising out of the ownership, maintenance or use of premises and the operations of the insured in progress.

Products-Completed Operations
Provides liability coverage for bodily injury and property damage arising out of products sold or distributed by the named insured or out of operations performed for someone else after the operations have been completed.

Employees as Additional Insureds:
Expands the liability to respond for the employee, in the same manner as the insured, while he is acting in the scope of the business.

Contractual Liability:
Provides coverage for an insured who under contract of agreement hold someone else harmless and agrees to indemnify him for any liability imposed.

Personal & Advertising Injury Liability:

Coverage will pay on behalf of the insured, those claims which the insured becomes legally obligated as a result of any of the following offenses committed in the conduct of the named insureds business:

Personal Injury

1. False Arrest, Detention of Imprisonment, or Malicious Prosecution
2. Libel, Slander, Defamation or Violation of Right of Privacy
3. Wrongful Entry or Eviction of Other Invasion of Right of Privacy Occupancy.

Advertising Injury


Covers oral and written publication of material that slanders or libels a person or organization and/or its products or services.

Non-Owned Watercraft:
(UNDER 26 FT. IN LENGTH): Coverage provided for bodily injury and property damage arising out of the use of a non-owned watercraft under 26 feet in length.

Fire Legal:
Pays the amount the insured is legally obligated to pay as a result of damages to the part of a non-owned building rented to, or occupied by the named insured.

Host Liquor Liability:
Coverage for businesses and organizations held liable under a liquor law for the serving of liquor at meetings or functions, but not in the business of manufacturing, selling or distributing alcoholic beverages.

Limited Worldwide Liability:
Lawsuits outside the policy's "coverage territory" are included as provided for in the policy form.

Medical Payments:
Payment made regardless of fault for first aid, necessary medical services, necessary ambulance service.

Premier Package Endorsement Coverages

Extended Replacement Cost:
Covers up to 125% of the property coverage limit of insurance to pay the repair or replacement of the building limit at the described premises if the building is insured to 100% of its replacement cost at the time of loss.

Replacement Cost:
Special Form is the broadest cause of loss form available. It provides for direct physical of, or damage to, covered property subject to certain exclusions.

Tenants Move Back Coverage:
Provides up to $10,000 per occurrence for expenses the insured incurs to move displaced tenants back to the described premises after completion of repairs made necessary because of loss or damage by a covered loss to the building.

Extended Premises Boundary:
Extended to 1000 feet of described premises on the Premier Package.

Machinery and Equipment Breakdown:
Provides coverage up to the Property limit. Pays for direct damage to insured’s machinery and equipment resulting from mechanical breakdown, electrical current or arcing or explosion of steam boilers. Also covers loss of business income resulting from equipment damage. Coverage is automatically included with the purchase of the Premier Endorsement Package.

Equipment Breakdown Coverage Loss Examples
A voltage fluctuation in an incoming electrical power supply caused two terminal boards in an office building’s telephone system to burn out.

Total Paid Loss: $ 52,500

An air conditioning system failed when the windings shorted to ground due to deterioration of the winding insulation.

Total Paid Loss: $ 65,545

Jurisdictional Inspection Service:

The Equipment Breakdown Coverage also provides certificate inspections for boilers and pressure vessels in those states and local jurisdictions that permit insurance company inspections.

Extends the Property Coverage to include loss, which results from the breakdown of mechanical, electrical, or pressure vessel equipment. Covered breakdowns include:

• electrical burnout of electric motors, generators, panel boards, switchgear, transformers,
• electrical surges to electronic, communication and computer equipment,
• mechanical breakdown of compressors, pumps, fans, blowers and other machinery,
• cracking or collapse of air conditioning or refrigerating vessels, coils and piping,
• explosion of steam boilers and steam piping,
• centrifugal force explosions
• bulging, cracking, dry firing, of boilers and pressure vessels

Except as noted in the Equipment Breakdown coverage section, all of the Property coverages, limits, conditions and deductibles apply to Equipment Breakdown. The following sublimits apply to the Equipment Breakdown coverage:

• Expediting Expenses, no sublimit. This covers the reasonable extra cost to make temporary repairs or expedite permanent repairs as the result of a covered breakdown.
• Hazardous Substances, $25,000 sublimit. This limits the amount we will pay for contamination by a hazardous substance.
• Perishable Goods, $25,000 sublimit. This covers the spoilage of perishable goods as the result of a covered breakdown.
• Computer Equipment, $25,000 sublimit. This limits the amount we will pay for damage to computer equipment.
• CFC Refrigerants, $25,000 sublimit. This pays for additional costs, as the result of a covered breakdown, to repair or replace Covered Property because of the use or presence of CFC refrigerants.

Optional Coverages

Business Income – Dependant Property (up to $250,000)
(Available only on Premier Package) The actual loss of Business Income you sustain due to the necessary suspension of “your operations” during the “period of restoration”. The suspension must be caused by direct physical loss of or damage to “dependant property” at a premises described in the schedule caused by or resulting from a covered cause of loss.

Redefine Period of Restoration
Included in Premier endorsement only. Removes the 72-hour waiting period requirement before the period of restoration begins for Business Income Coverage.

Employee Benefits Liability
Covers the amount the insured is legally obligated to pay as a result of making errors in the administration of any employee benefit program. Coverage applies after $1,000 deductible. This coverage is written on an occurrence basis.

Earthquake Sprinkler Leakage
The companys insurance created endorsement will pay for loss or damage to the insured’s Building and Business Personal property caused by leakage from and Automatic Sprinkler System, or from collapse of a tank that is part of the system. (Note: Coverage does not apply to a tenant’s property).

Glass Deductible Buy-Back
This option provides that the deductible applying to Exterior Glass is reduced to $100 per occurrence.

Fine Arts:
This endorsement is available to insure against risks of direct physical loss. Special exclusions apply, including exclusions from breakage of fragile items unless caused by certain named causes of loss.

Hired and Non-Owned Auto
Pays (as excess) for bodily injury or property damage claims arising out of the operation of a vehicle not owned or hired by the business for business purposes.

Outdoor Fences and Walls
A $25,000 limit, Special Form cause of loss, is available for outdoor fences and walls.

Building Ordinance

Three coverages are provided:

Coverage (1) covers the loss in value of the undamaged portion of the building due to demolition required by a building ordinance or law.

Coverage (2) covers the cost of demolition and debris removal of the undamaged portion of a building if demolition is required by building ordinance or law.

Coverage (3) covers the increased cost to repair, reconstruct or remodel damaged or undamaged parts of the building in order to comply with a building ordinance or law.

Utility Services – Direct Damage:
This optional endorsement BP 04 56 provides coverage for loss or damage to Business Personal Property that occurs from loss of water, communication or electric utility service, including transmission lines, due to physical damage to the utility from a covered cause of loss.

Utility Services Time Element:
Pays for loss of Business Income or Extra Expense caused by the interruption of power (property supplying electricity, steam or gas) or communication (property supplying communication services including telephones, radio, microwave or television) services to the described premises. The interruption must result from direct physical loss or damage to the off premises supply property.

D & O Liability – Property Managers as Additional Insureds
The Office-Condo association may elect to add the property/association managers as an additional insured.

Aggregate Limit Per Location
Aggregate limits of insurance for business liability and medical expenses can apply separately to each of the owned locations.





Contact us for more information on Commercial Real Estate Insurance, or submit a quote request today.

This is a general description of coverage and is not a policy contract. The policy itself should be read for your coverages and exclusions. Insurance coverage underwritten by Farmers Insurance Group of Companies.