When a business in South Florida purchases a Commercial Insurance Policy, that business person is expecting to transfer their risk to an insurance company in exchange for a premium. Being written on 3 different forms (basic, broad, and special), the commercial insurance policy can be a little confusing since each policy is not issued as a package like a homeowners insurance policy The first thing the claims adjuster will do upon your notification of a claim is to make certain that the appropriate coverage is part of the policy you purchased. There can be problems if the policy was not written correctly.
When insuring commercial property on a basic or broad form, the property covered must be insured for at least 80% of the replacement cost and at least 90% on the special form. Not having the proper co-insurance on the insured property will result in the claim payment being reduced by the % of the shortage.