What Falls Under Property Damage?

Property damage can be defined as damage caused to a business’ property or a third-party property. Property damage usually means physical damages caused to tangible property. Tangible property can be described as something that can be felt or touched such as a computer monitor or building.

Most of the property damage claims include physical injury or damage caused to a tangible property, which is owned by the person filing the claim. For example, building owners will be able to sue plumbing contractors for damages that are caused due to a fire, which was accidentally started by the plumber when they were welding a pipe.

How Does Property Damage Really Work

It is important to remember that a wide range of business insurance policies covers property damage. Here are a few examples.

● General liability insurance offers coverage for third-party damage claims
● Business auto-policies offer coverage for third-party damage claims, which was due to business vehicle use
● Commercial property insurance offers coverage for damages caused to a business property due to fire, theft, or other unexpected events

In some cases, commercial property insurance will be bundled into BOP (Business Owners’ Policy). This will provide property coverage, business interruption insurance, and general liability coverage to policyholders.

Most businesses usually buy a CGL or Commercial General Liability insurance policy. The policy allows both small and large businesses to protect themselves from all types of third-party damage claims.

Commercial auto policies will offer coverage for both physical and property damage that occurred due to business vehicle use.

If you want more details on property damage claims and how it will work for you, then you will need to check the policy definitions sections in your insurance policy.

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