Business Property insurance protects the physical property including buildings, fixtures, equipment, and inventory of your business against loss from theft, fire and other perils. While property coverage isn’t required by law, it usually is required by lenders and is a wise investment to limit your financial risk in the event of a natural disaster or other calamity.
There are various forms of property insurance but we normally suggest the “Special Form” rather than a “named-peril basis” policy. A “named peril basis” policy only covers the specific perils named in the policy; the “special” form will cover you for any cause of loss as long as it isn’t specifically listed as an exclusion.
If your local or regional location is inclined toward a specific calamity, such as flood, earthquake, or wind damage, you may consider additional insurance or pay an additional premium to insure against these risks.
A key coverage to purchase in conjunction with your property coverage is “Business Income & Extra Expense”. This provides coverage for the loss of income you incur as a result of the reduced or ceasing of operations because of a covered loss. It also extends reimbursement for expenses to reduce your potential loss of income. Examples of these expenses would be to relocate the operation, expedite delivery of repair parts, etc.
Numerous other property coverage riders are able to be endorsed to your property policy if necessary to protect your various risks. Such as: Ordinance or Law, Off Premise Utility Interruption, Equipment Breakdown, Property Off Premise, Computers, Peak Season, Dependent Business Income, etc. Depending on the size of your business it may be prudent to combine many coverages into a Business owner’s policy (BOP) or Commercial Package policy when available.
We specialize in helping businesses with their insurance protection, including their property risk. For more information about this important protection for your business, contact us today.