Business Property coverage is insurance that protects the physical property and equipment of a business against loss from theft, fire or other perils. Business property insurance is a must to protect your company’s assets. While it isn’t required by law, it’s a wise investment to limit your liability in the event of a natural disaster or other calamity. Without it, your business may not survive financially.
Most business property insurance plans are tailored to the business and can cover a variety of losses, including damage from fires, electrical surges, even embezzlement by an employee. In addition it is usually recommended that business property insurance policies cover fixtures such as lighting systems or carpeting, equipment and machinery, furniture, computers and inventory.
When it comes to insurance for your physical property, we normally suggest an “all-risk basis” policy rather than a “named-peril basis” policy. A named peril basis policy only covers the specific perils named in the policy, an all-risk policy will cover you for virtually anything (except for a few specific exclusions). The all-risk policy will allow you to:
Eliminate duplication and overlap
Avoid gaps in trying to cover your liabilities through a number of specialized policies
Encourage quicker settlements by working with one agent and one attorney
Reduce the expense of having many different policies
If your local or regional location is inclined toward a specific calamity, you may consider additional insurance or pay an additional premium to insure against fire, flood, earthquake, nuclear risks (if you’re near a nuclear plant), hail, windstorm, vandalism, or crime. Depending on the size of the business it may be prudent to combine many coverages into a business owner’s policy (BOP)–a ready-made program for small businesses–or a special multiple-peril plan.
A business owner’s policy and other business property insurance plans can also cover lost income due to the disaster as well as the additional costs of operating from a temporary location. However, vehicles are generally not covered by such policies, nor are financial assets kept on hand.
If you want additional insurance to cover losses such as those caused by fraud, burglary or robbery – which basic business owner’s policies and property insurance do not cover – we can add them onto your policy. These “riders” may also include data protection, personal assets and computer virus protection.
For more information about this important protection for your business, contact us today.